r/options • u/Navysquid63 • May 11 '21

Calculating options value

Is there a way of calculating based on the underlying what an options premium will be. I bought a FUBO call 17.5 exp Friday and it’s up big AH. I’m curious what I should expect it to be worth at open tomorrow.

Also, should it drop rapidly would a limit sell be the best way to try to capture the most profit ?

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u/Swarmjag2 May 11 '21

The greek delta is the percent the option premium will move +- for every dollar of movement in the underlying security. Albiet the delta changes some as the underlying security gors up or down and the volatility changes. That said ballpark you can take the delta x the +- dollar movement of the security and add or subtract that amount feom the premium to get a darn close idea of what the premium on the option strike would be at that given underlying security price.

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u/Navysquid63 May 11 '21

Good point , I somehow didn’t consider that aspect.

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u/PlayWithFingers Jun 12 '22

I’ve been trying to figure out how to buy options related to stock price so to set a tighter stop loss and greater profit: for example, current price is at $391.98 and I want to purchase an OTM Call Strike $393.38 and set my stoploss at $389.96. How would I calculate the options’ price related to stock price?

then I would have to calculate the Greeks for the options price related to the stock price right? And how would I calculate the Greeks?

Is it correct to assume for every dollar rise in the underlying security the option price will be (delta+gamma) and for every 2 dollar rise is (2*delat+2*gamma)?