OptionEdge 2.1: Documentation

How to Create a Call/Put Position

First click one of the drop-down arrows and select "Buy/Sell Call/Put." Then enter the current market information into the gray fields. This information can be found on web sites like www.nasdaq.com, www.ivolatility.com, or www.yahoo.com.

Next press the "Set" button. Pressing "Set" synchronizes the program with the factors that are currently affecting the option. It makes the theoretical days-until-expiration equal to the actual days-until-expiration, it makes the theoretical Black-Scholes price equal to the actual call/put price you entered, and it makes the purchase price you entered equal to the actual call/put price. Additionally, pressing "Set" calculates the implied volatility.

Enter the position quantity and any commissions. (1 option contract = 100 shares of stock.)

Other Information

You can create equity positions by selecting "Buy/Sell Stock" from the drop-down arrows. You would then enter purchase price, shares purchased, and commissions. You can combine equity and option positions to create covered calls or other strategies you might think of.