Can I change the assumptions of the Profit + Loss Calculator and see how it affects my potential profits or losses?
Yes. The P + L Calculator lets you streamline even complex, multi-leg options strategies, so you can pay attention to a single figure: the changing movement of the underlying. At the same time, the P + L Calculator gives you the control to fine-tune assumptions that may affect your profitability forecast. To adjust for changing volatility, use the horizontal slider below the line graph to the far left. You can either enter a figure in the text-entry field, or drag on the slider with your mouse. To measure changes in volatility in relative terms, choose “Relative” from the dropdown menu on the volatility slider. In this example, if current implied volatility is 16.25%, a 10% relative move would translate to 17.875% (16.25% x 0.10 is added to the original implied volatility, because the relative move here is positive). To measure changes in volatility in absolute terms, choose “Absolute” from the dropdown menu. After a 10% absolute change, for example, volatility would equal 26.25% (10 +
