Profit Heatmap
Time to Expiry (Days)
Spot price
Strike price
Risk-free rate (%)
Volatility (%)
Time to expiry
Premium
Target price
This application uses Black-Scholes model to estimate future options value.
Profit heatmap - The heatmap dispalys your potential profit/loss on a set date and spot price.
Spot price - The current market price of the underlying asset (e.g., stock).
Strike price - The price at which you can buy (call) or sell (put) the underlying asset.
Risk-free rate - The theoretical return on an investment with zero risk, typically based on government bond yields (like U.S. 10-year Treasury yield).
Volatility - Annualized standard deviation of the asset's returns. Measures how much the price fluctuates.
Time to expiry - Time left until the option expires, in years.
Premium - The premium or amount you paid to buy the option (not part of Black-Scholes model itself, but used for profit/loss analysis).
Target price - The price at which you plan or hope to sell the option, used to evaluate potential profit.