Glossary of Option Terms: Probability Calculator
Probability Calculator
Definition: A program that will give you the odds of the stock price being above or below your option position’s breakeven point (or any point) based on all the factors that affect your option at that moment in time. The three most important factors are usually: underlying security price, expiration date and volatility.
Related Articles:
- Using a Probability Calculator: Know Your Trade’s Exact Chance of Success Up Front
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