Options Trading Excel Calculator

Options Trading Excel Collar A collar is an options strategy which is protective in nature, which is implemented after a long position in a stock has proved to be profitable. It is implemented by purchasing a put option, writing a call option, and being long on a stock.

In this article you will learn how to create your own excel spreadsheet for analysing option strategies. The Collar is basically a combination of a covered call and a protective put.

To provide valuable tools to traders who aspire to excel in their trading business. To help traders evaluate their true market ‘edge’, giving reason to exploit those opportunities. To help traders recognize when specific actions are becoming detrimental to their account.

A protective put is implemented when you are bullish on a stock, but want to protect yourself from losses in case the stock price decreases. A Bull Call Spread is implemented when a call is bought at a lower strike price and another call is shorted with a higher strike price.

It is implemented when you are feeling bullish about a stock. A Straddle is where you have a long position on both a call option and a put option. This is implemented when you expect the stock to change significantly in the near future, but are unsure of which direction it will swing. This can be implemented before a major news announcement which is likely to have a substantial impact on the value of a stock. First, enter the same formulas for the Long Call and Long Put as we did in the previous sections.

A collar is an options strategy which is protective in nature, which is implemented after a long position in a stock has proved to be profitable. It is implemented by purchasing a put option, writing a call option, and being long on a stock. It is meant to prevent excessive losses, but also restricts excessive gains. The Collar is basically a combination of a covered call and a protective put. Enter the max profit, max loss, breakeven and profit formulae for the long put and short call as shown in the previous sections.

Maximum profit is realized when the price reaches up to the Call option strike price, this way, there is no loss due to writing of call option, and we realize a profit because we already hold the stock, whose value has increased. If the stock price remains the same, we neither gain nor lose, therefore our breakeven price is equal to the current stock price itself.

Now that you have created your own options trading Excel spreadsheet for options analysis, not only is it easier for you to evaluate different strategies, you have also gained a deeper understanding of the different types of strategies. Facebook Twitter Linked In Youtube.

If you have an earlier version of excel, then let me know and I will send you a different file to use. Since the different worksheets are using macros, you may see a security warning that they have been disabled when you open the spreadsheet. If you want to use the spreadsheet, then you will need to click enable content.

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading.

Past performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which may described in the content on this site. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.