What does „Ratio“ mean?
In the straddle calculator you’ll find a required field named “ratio” under Calls and Puts.
Ratio means the “amount of options needed to buy one unit of underlying“. Especially in European Options you may find different ratios (the most common are 10 and 100 though). So if you decide to buy options for 100 shares of a stock XYZ and you know that you need ten options to be able to buy one share, you’ll have to enter 10 in this box.
July 21st, 2008 05:13
Hi,
I am an CFD and options trader from Australia, and I love this calculator you have developed! When trading options, straddling is the only strategy I use (because it works!) and so this is a nice little graph to show people.
It would be AWESOME if the graph displayed cross-hairs when you move the cursor over it, or alternatively a button which allows you to select cross-hairs or cursor.
Keep up the great work!
Jason Behrndt
From the land of Oz
July 21st, 2008 12:37
Hi Jason!
Thank you very much for your feedback! I really appreciate it!
I’m glad to hear that you like the tool and find it useful.
The OptionsCalculator for Straddles is somewhat on hold right now as I invest all the available time in a more complete tool: the Options Simulator. Which will allow you to develop/simulate visually _any_ options strategy out there.
It is a little bit more complex than I expected at first, and I have got an importnat project at the bank I work for, too. So the progress is slow. If I find some spare minutes I’ll take a closer look at your requests
Cross-hair cursor for the graph should not be too difficult to implement!
Cheers!