Recent content by OptionTimeline

This is basically correct, but... The big unknown parameter is the standard deviation. When you open the calculator you initially see the current standard deviation of the option, also known as the Implied Volatility, which is the most affecting parameter on the option's market price. Once the...

Yes, the calculator is based on the Black-Scholes model. The standard deviation represents the volatility of the options. Higher S.D. causes higher price of the options (you can check it in the calculator), as if there is an expectation for a relatively high movement of the underlying asset...

You can use the B&S calculator in http://optiontimeline.com/OptList/En/OptList.html - Click on the "B&S" button on th upper-right. It can be done on the entire strategy from withing the simulator page.

Please try http://optiontimeline.com Besides standard features like option simulator, B&S calculator, etc, you can use the Time Simulation, which allows you "go back in time", build a strategy, and test the behavior over time.

Day-trading in options is not recommended for the private investor not only because of high commissions - it is simply very very risky and most of the traders are constantly losing. IMHO (and experience) the only chance to make money in options is using strategies. It is still risky, but...