Probabilities

Probability is a key concept of option trading. When putting on a trade with a certain reward to risk, it is essential to take into account the probability of the reward really occurring.

The Probabilities shows you:
-the probability of the underlying being above/below selected prices

• on a certain date
• at any time during a selected time frame

Another way to look at probabilities is thinking in standard deviations. For example statistically a price movement stays within 1 standard deviation 68.3% of the time.The Probabilities shows you how likely a move of less than x standard deviations is and calculates the corresponding price targets:

Back to: Greeks Graphs | Next feature: Statistical Volatility Tool