In this video, you will learn how to use the Profit and Loss calculator to model options strategies to see profit and loss potential, change assumptions such as underlying price, volatility, or days to expiration, as well as how to trade directly from the calculator.
With the breadth of market data, tools and analytics available, it can be difficult to know where to start. Use this overview demo to familiarize yourself with the resources available in our Options Research pages.
You can use the filters and customization features of the option chain to help find the option that best suits your strategy.
Find new trading opportunities by using the Market Scanner. Search for high option volume, unusual volatility, and other pre-built scans. You can create your own customized scans as well. Results from the Market Scanner can be a starting point for further analysis before you hone in on your specific trade.
Let’s use the Strategy Ideas tool to find the specific strategy that fits your needs. Alternatively, if you already know the option strategy but don’t know which underlying, strike price, or expiration, this lesson will teach you how to quickly filter for potentially profitable trading opportunities for the strategy selected.
See how the Argus reports on Fidelity.com can provide you with real-time data on specific option trading ideas.
We’re now getting into the details of the potential risks and rewards of specific option trades. The Strategy Evaluator lets you choose the single or multi-leg strategy and expiration then finds potentially profitable trades based on the market conditions you expect to occur between now and expiration.
Determining the right strike prices and expirations are critical to being successful in the options market. With the Probability Calculator, you can analyze the likelihood of the underlying trading at or between your price targets by a specified date based on historical volatility.
As a final way to validate your trading idea, use the Profit and Loss Calculator to model the impact that varying market conditions will have on your strategy. Quickly see how changes to the underlying price, dividends, interest and volatility will impact the profitability of your strategy.
Now let’s learn how to execute your trade using the option trading ticket on Fidelity.com. Enter the underlying and quickly build your trade by selecting the expiration and strike price. You can enter single or multi-leg trades and analyze the potential profit, loss and breakeven points within the trade ticket.
Find, analyze, and execute options strategies on Fidelity.com
- Video Getting started with options analysis on Fidelity.com
- Video Navigating & customizing the option chain
- Video Creating market scans
- Video Generating strategy ideas
- Video Finding trading ideas with Argus options reports
- Video Using the strategy evaluator
- Video Using the probabilty calculator
- Video Using the profit and loss calculator
- Video Trading options on Fidelity.com
Options at Fidelity
Options research helps identify potential option investments and trading ideas with easy access to pre-defined screens, analysis tools, and daily commentary from experts.
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.