Probability Calculator - "Tools for the Statistical Trader"

Most novice traders start trading options using simple long call or long put positions based strictly on directional opinions. Most are typically, and quickly, disappointed and disillusioned with the results. While directional trading can be very lucrative, success relies on the trader's ability to predict the price direction of the underlying security. Yet being able to effectively predict direction still does not ensure profitability.

We all know there are many different option strategies and trading styles. Through the Probability Calculator, though, OptionVue 5 can help you decide what strategy may be the best considering your price projections by calculating the probabity of profit and the expected return based on a lognormal distribution of prices over a given period of time.

OptionVue 5 has many utilities for calculating the statistical probabilities of various trades and their expected performance. The Probability Calculator is very useful in helping you determine the statistical probability of price movement over a user-defined period of time and statistical volatility level.

The output from the probability calculator includes 1st, 2nd and 3rd standard deviations of price movement from the current price level, and the probability of finishing between, touching or finishing beyond the 2 user-defined targets.

Use this information to identify and determine a trading strategy that provides the best expected return based on your price projection.

Trade with OptionVue 5 and Trade with the competitve edge!