Options: Place Option Order Based on Underlying Price

[sinistralleo]

So, I've searched to no avail, mostly because I don't really know what to look for.

Have any of you ever seen a calculator that will tell you the underlying price based on option movement. (Not a profit calculator, but kinda).

In other words, for example, if a Gann 9Sq said my SL should $130, How do I know where to place the SL on my AT?
Or if my profit target is $300, once again, where is that on either chart? I know when I have my option chart next to the underlying chart, my limits and SL populate on the underlying. I can adjust it to be close, but a calculator would be clutch.

I've been going to www.optionsprofitcalculator.com and guessing that way, but that is for the "at expiration" and I mainly day trade.

Thanks in advance

 

[sinistralleo]

I also realize my title makes no sense...
I'm finishing up a 16 hour double and I'm delirious.

 

[rad14733]

@sinistralleo Perhaps your choice of words is what's making things confusing... Are you looking for actual "strike price" which is part of you option symbol, or what the underlying price "should be" based on the current option price - which would be theoretical at best... It's normally a matter of option price being calculated from underlying price, not the other way around...

It would help to know the stock and option symbols you are referring to... Merely tossing a couple numbers out there doesn't give us much to go on... Not really getting exactly what you're asking...

 

[sinistralleo]

@sinistralleo Perhaps your choice of words is what's making things confusing... Are you looking for actual "strike price" which is part of you option symbol, or what the underlying price "should be" based on the current option price - which would be theoretical at best... It's normally a matter of option price being calculated from underlying price, not the other way around...

It would help to know the stock and option symbols you are referring to... Merely tossing a couple numbers out there doesn't give us much to go on... Not really getting exactly what you're asking...

@rad14733 Fair Enough,
Today at 0945 EDT I ran the Gann Sq9 calculator on AMZN with a input of $3320.
The output was to short at/below 3306 and a SL of 3320. I bought 3 3305 Puts, Aug13 Exp.
I run the underlying chart and the option strike chart at the same time.
Where in the option world is 3320? Where would I put my option SL so that it is 3320?

Is there a calculator to input the strike, the underlying, expiration, maybe a delta (or whatever) and it will spit out that $3320 equates to $16.45 on the option chart?

I read: https://usethinkscript.com/threads/...-level-for-strike-price-of-owned-option.7494/ but I'm not sure that is what I mean.

 

[sinistralleo]

Does that make more sense?

 

[commoncents]

@sinistralleo Is this what you're looking for:

​

 

[rad14733]

Does that make more sense?

That was what I assumed you meant... Going the route @commoncents posted is the easiest method... Unfortunately, due to the complexities of option price calculations, based on the Greeks, it is very difficult (read virtually impossible) to calculate what the option price might be when the underlying price hits a specific point...

 

[sinistralleo]

@rad14733 @commoncents I appreciate the help. I can't view the attachment at the moment due to work computer restrictions, but I'll check it out when I get home. Thanks again.

 

[halcyonguy]

@rad14733 Fair Enough,
Today at 0945 EDT I ran the Gann Sq9 calculator on AMZN with a input of $3320.
The output was to short at/below 3306 and a SL of 3320. I bought 3 3305 Puts, Aug13 Exp.
I run the underlying chart and the option strike chart at the same time.
Where in the option world is 3320? Where would I put my option SL so that it is 3320?

Is there a calculator to input the strike, the underlying, expiration, maybe a delta (or whatever) and it will spit out that $3320 equates to $16.45 on the option chart?

I read: https://usethinkscript.com/threads/...-level-for-strike-price-of-owned-option.7494/ but I'm not sure that is what I mean.

are you asking,
how to calculate the future value of an option, in order to guess at a stop loss price, for the option?

in thinkscript , there is a function to calculate the price of an option. it might work for you? i haven't used it to estimate a price far in the future.
https://tlc.thinkorswim.com/center/reference/thinkScript/Functions/Option-Related/OptionPrice
i have used it to calculate an approximate option price for the current day. but, it doesn't seem to track the price accurately over time. i had to try different volitility numbers, before i got it close. then had to adjust it after big stock moves.
i haven't found the right combination of inputs , that work , without adjustments.

 

[sinistralleo]

More like real-time. Not too far in the future. Used for day trading.

Imagine 2 charts on your screen, side by side. SPX on the left and an option chart for SPX on the right. With the cursors sync'd, only the X axis works. The Y doesn't because there is no calculation between option value and stock value.

If I want to set my stop loss at, say, the the 20 MA, how do I know where that is on the options chart?

 

[ssmike123]

So, I've searched to no avail, mostly because I don't really know what to look for.

Have any of you ever seen a calculator that will tell you the underlying price based on option movement. (Not a profit calculator, but kinda).

In other words, for example, if a Gann 9Sq said my SL should $130, How do I know where to place the SL on my AT?
Or if my profit target is $300, once again, where is that on either chart? I know when I have my option chart next to the underlying chart, my limits and SL populate on the underlying. I can adjust it to be close, but a calculator would be clutch.

I've been going to www.optionsprofitcalculator.com and guessing that way, but that is for the "at expiration" and I mainly day trade.

Thanks in advance

I think what you may be looking for can be found in TOS. Review this two Videos from Pete Hahn

 

[ganq]

@rad14733 Fair Enough,
Today at 0945 EDT I ran the Gann Sq9 calculator on AMZN with a input of $3320.
The output was to short at/below 3306 and a SL of 3320. I bought 3 3305 Puts, Aug13 Exp.
I run the underlying chart and the option strike chart at the same time.
Where in the option world is 3320? Where would I put my option SL so that it is 3320?

Is there a calculator to input the strike, the underlying, expiration, maybe a delta (or whatever) and it will spit out that $3320 equates to $16.45 on the option chart?

I read: https://usethinkscript.com/threads/...-level-for-strike-price-of-owned-option.7494/ but I'm not sure that is what I mean.

Hi,

What is the Gann Sq9 calculation you have mentioned on this post?

Thanks!

 

[MerryDay]

@gang GANN Square of 9 Indicator https://usethinkscript.com/threads/gann-square-of-9-indicator-for-thinkorswim.5816/

 

[sinistralleo]

@sinistralleo Is this what you're looking for:

​

Yes! That will work. thank you