Options: Place Option Order Based on Underlying Price

sinistralleo

New member
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 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 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.
 
Last edited:
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...
 
@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.
 
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?
 
Last edited:
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
 
@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!
 

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Similar threads

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
323 Online
Create Post

Similar threads

Similar threads

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top