Option Pricing Calculator

[exit301]

Hi,
I was just wondering if anyone can tell me what the formula is to calculate what an option will be priced at given a certain stock price and time left till expiration etc.

For example, lets say I bought a Put option at $.50 and the stock is currently at $15 a share. I want to sell that option when it gets to lets say $.80 - What will the stock price have to be when the put option gets to $.80?

Is there an easy way to calculate this?

Thanks

[JROCK]

There sure is...

Just visit the link below and scroll to the bottom section 'BASIC OPTIONS CALCULATOR'
- Enter the symbol, click go
- Enter the strike price and month
- Enter the price you are expecting it to get to
- Enter the days left to expiration (So if you think it will do this in 5 days, subtract that from the number already there)
- Click Calculate

Then look over to the right and you'll see a potential price for the CALL AND PUT.

* NOTE: The calculated price is based on the current volatility, which changes daily or hourly. Volatility is a factor in determining option prices.

http://www.optionseducation.org/quotes/

[exit301]

Awesome! Thanks for sharing that. This is very helpful!