Q16: I trade options. How can Tradetrek help me?

A: Tradetrek provides an advanced option valuation tool. We apply the Black-Scholes model to value call options and use Tradetrek's proprietary model to price American put options. We also provide the short-term historical volatility of the underlying stock as the default volatility. You can enter a stock symbol and compute both call and put option prices and corresponding deltas. On the other hand, if you type in the market option prices, you can use our model to compute the implied volatilities. You can also change such default parameters as Strike Price, Expiration date, Interest Rate, and Volatility to re-compute option prices and deltas. If the underlying stock will pay a cash dividend before the expiration date, you should enter the dividend amount into the Dividend entry box.

In addition to using Tradetreks' option calculator when you trade options, you will also find useful assistance from our other tools, such as the Neural Network Stock Forecast and Fundamental Analysis, which provide mid-term and short-term price predictions. For example, the 5-day Neural Network forecast can be valuable for you in determining likely short-term option price movements. The various Technical Analysis models can also give you indications of possible stock price movements in the next few days. If you trade mid-term or long-term options, our 6-month price targets can be a helpful reference.