CallCulator

This shows the optimal option strategy found by the algorithm. Each line represents one leg of the strategy, showing the weight (percentage allocation), option type (call/put), strike price, and the price to pay for that option.

This chart displays the potential profit/loss of the calculated options strategy. For any stock price on the X-axis, the chart shows the profit/loss performance by the selected expiration date of the strategy in percent on the Y-axis. These values are without uncertainty. The only uncertainty is which stock price will be reached by the selected expiration date.

The Black-Scholes valuation is a PDE (Partial Differential Equation)-based, nobel-prize winning method to predict the price of the option before its expiration date. Each cell represents the performance of the strategy for a specific share price (rows) on a specific time before expiration (columns). This is a theoretical performance and the actual performance may vary. The last column shows the performance of the strategy at expiration date and is the same as the above performance chart (rotated 90 degrees clockwise) and without uncertainty. The Black-Scholes valuation has flaws by the nature of idealized assumptions the real market does not follow but it is a good and widely used starting point for option pricing.

This chart compares the specified risk tolerance (red) with the actual risk profile achieved by the found strategy (blue). If risk tolerance was included in the Search Parameters, the achieved profile should always be above the minimum requirements as that represents the risk tolerance being met. The green line shows the Monte-Carlo Risk Profile: a simulation of 10,000 successively and repeated investments into the found strategy. In each simulation the found investment is reinvested 20 times and the end result is stored. The 10,000 simulations are sorted from best to worst and displayed here.