Optionstrategist – The Expected Return Calculator

The Expected Return Calculator is McMillan’s proprietary analytical software that uses statistical analysis to evaluate complex option positions, in order to give the trader an idea of whether or not there is a probability of success in a trad

Optionstrategist – The Expected Return Calculator

For evaluating potential positions, you can use statistical analysis

The Expected Return Calculator is McMillan’s proprietary analytical software that uses statistical analysis to evaluate complex option positions, in order to give the trader an idea of whether or not there is a probability of success in a trade.

What is it? Expected Return?

Expected Return This is the expected return on a position after many trials. In the real world, every position we invest in only produces one result. We cannot average many results. But, long term, investing in superior expected returns will result in superior returns to your trading account or portfolio. All aspects of a strategy are included in expected return. This includes the likelihood of making or losing any money, as well the size of the profits or losses. 

Why should you use the Expected Return Calculator?

The Results from The Expected Return Calculator It can be used to help traders and investors decide whether a specific option position is worth taking.  Also, an expected return analysis allows traders to compare different strategies and determine which strategy is most effective. Maybe a simple option purchase works best. Expected return can help you decide.  

How to use The Expected Return Calculator

The trader first defines his position. This can be very complex, with multiple expiration dates and options, as well as possible linear volatility skew. 

1. Name the position to be used as a reference.
2. Enter the specific dates you would like to use for your position’s “Evaluation Points” Together with the beginning date.
3. Give information about the underlying security, including its Symbol, Price, History Volatility, and Price. 
4. Include any information about volatility skews or dividends that is relevant to the position you are studying.
5. You will need to enter the information for each leg, such as the Option Symbol, Type (put/call), Quantity, Strike Price and Option Price. Option Implied Volatility can also be entered (implied volatility can set to 0 and automatically calculated). 
6. Multi-underlying can be combined into the position by using the “Add Underlying” button.

Click here “Summary” tab The outputs can be quickly and accurately calculated, and all data can be printed or exported to Excel. Tabular outputs include the position “greeks” Calculate expected profit at all user levels.-Clearly defined dates throughout the tenure of the position

1. An overview of all your inputs will be provided.
2. The The calculation and presentation of Greeks such as Delta, Gamma. Theta. Vega. and Rho is possible.
3. The Expected Dollar Return It is displayed at each data point for each leg as well as the entire position.
4. The Expected Percentage Return Each data point provides the complete position.

The following are the guidelines “Plot” tabGraphic outputs depict how the position should behave at the user-Defined intervals  The Expected Return calculator allows you to easily visualize exactly how much money you’d expect to make or lose at any underlying price and at any time throughout the life of the position.

More information The Expected Return Calculator:

• Analyze complex situations involving multiple options 
• Encompasses volatility skews 
• Date Calculator Functions 
• Profit/Loss Graph, including user-Time lines clearly defined 
• Expected Profit graph clearly shows profit 
• A legend on the profit graph allows for easy identification of key data points 
• Available as well is tabular information on profit 
• Position “greeks“ are shown 
• User-No defined commission rates 
• Excel can export outputs 
• Save data files to your hard disk 
• All outputs can be printed – graphically or tabular 
• 30-Page User Manual available under Help Topics

System Requirements

PC-Operating System Compatibility Windows® 2000, XP Home, XP Pro, 2003 Server, Vista, Windows 7* (download only), Windows 8* (download only), Windows 10* (download only).

 Here’s what you’ll get in Optionstrategist – The Expected Return Calculator

Optionstrategist – The Expected Return Calculator : Sample