You need to add the option contract on the marketwatch. By using Zerodha Brokerage Calculator, You can calculate the total brokerage and your actual profit while trading in Options equity with Zerodha. Should we, then, base our B&S calculations on RBI’s Treasury Bill rates(91 days) or on NSE’s interest rate figures ? Since Annual Volatility and Interest Rate are the only 2 variables not readily available from the market (Time, Price, Strike, Dividend are fixed & actual), i wanted to conclude whether NSE’s computation is correct or computation with RBI rate is correct. Yes, the delta of a Futures Instrument can be assumed to be 1. where can we get interestrate% & volatility%. Hi What i have to do now? Updates. I guess its best to include only the trading days. What’s profit loss???? Commodity markets are open from 10am to 11.55pm, and this post should help you figure the rupee impact for 1 point movement in a commodity. Also the IV values in option chain. so please tell me where to find it and use it. The logic on which Black-Scholes model works is quant heavy involving concepts of stochastic calculus. from the previous trade day. Total value = Free cash – margin used. Due to the upfront margin requirements applicable from September 2020 onward, the above credits will reflect in your available margins after they are settled by the exchange. Can you please explain with a practical example and sources to find the historical volatility. I had read the article on Options Greek.What I understood from the article is that , in the volatility box, the India VIX value needs to be entered whereas in the Interest box, the 91 day RBI T-Bill Interest rate needs to be entered and the Dividend can be kept as zero. I had 10667 cash balance . Search for an answer or browse help topics to create a ticket Featured. Click the Tools button, and then click Internet Options. Then you have to click on the margin calculator. hello nitin sir, Values that I am struck are Risk Free Rate and Dividend. jitendra kumar. Hello For T bill rates goto https://www.rbi.org.in/, on the landing page left hand side you can see “Current Rates”, under that click on the Money Trends…here you can see the 91-Day T-bill rates. Along with the calculation of the option Greeks, the option calculator can also be used to calculate the theoretical price of an option (also called fair value of an option’s premium) and the implied volatility of the underlying. In fact, the calculator is telling us that the delta is 0.525 for the call option and -0.475 for the put option. Zerodha Broker is known for its best service to its traders. Answer me Can you please uninstall and re install ZT? 5 Paisa ₹0 Account Opening. I’ll be happy to help you through this. Where can I get a lambda calculator for easy calculating the percentage change in option of each strike for a percentage change in underlying? Biggest charges in options trading is STT and Exchange Transaction Charges. It’s unfortunate to see such issues with a modern day brokerage (back office maintenance outage, not listing PnL % on the dashboard, no explanations for the jargon used). 2) Total bid qty represents demand, total ask quantity represents supply. The difference I noticed was for Nifty and BankNifty spot prices on the reference site: Similarly, I want average IV for individual securities. i buy only index(nifty50 and Bank Nifty) . But I guess you could use a simple excel model to build this yourself. Also can i hedge a stock by buying the futures of that stock instead of the underlying? It all showing just 0.00. You can use this tool to calculate Total Brokerage Charges & Taxes, Breakeven Point (Per Share) and Net Profit or Loss Per Trade upfront in an easy way. http://www.niftytrader.in. 8600 call option shows an IV of 12.61 while the 8600 put options shows an IV of 15.44. IF premium goes upto 3, you make Rs 2000 profit. For the Options calculator, there are two additional things to specify: One is the strike, The other is whether it is a call or put. Your input will be valuable. To calculate your delivery brokerage and other charges, Zerodha delivery calculator gives you a feature to calculate your exact break-even point. When pricing options using B&S model for Nifty index, should i input the Nifty Underlying price or Nifty Current Month’s Future price? It would be a bit tricky for Nifty Options as Nifty is an Index and quantifying the effect of dividend is quite difficult. Total Profit Or Loss (Rs.) At this stage you need to decide what the option calculator should calculate for you. As usual, you were quick in resolving my query. 3. Maybe we will check with NSE directly to understand their logic. but sir my problem is where i can see actual the premium of that share currently which i want to buy call and put option because premium is increase/decrease time to time. . Is that true? Hopefully in the upcoming releases of Kite. So it should be 10665.5 + 150 = 10815.5 But it is showing as if I made a loss of Rs 150. The zerodha call option calculator jobs from home in vasai Short Option Minimum! ‘Dividends (in Rupees)’ would be for the index and the actual dividend value in case of a stock. In the Address box, type the address of the proxy server. NSE takes an interest rate of 10% while computing the implied volatility – scroll down to the end of the page and you see the interest % mentioned by NSE. Suggest you try moneycontrol for the same. I m using Pi. Very useful post and I m learning a lot. Zerodha Brokerage Calculator – Calculate Brokerage & other Charges. There’s a module on Varsity discussing theta: http://zerodha.com/varsity/chapter/theta/. Sunil. The difference, though not significant, mainly occurs due to factors such as wrong volatility assumptions, bid-ask spread, liquidity, transaction charges, and taxes. "Zerodha brokerage calculator " is a free tool to calculate your brokerage and taxes, which include stamp duty also. if reach how much i will loose. Sometimes small differences arise owing to variations in input assumptions. Click the Connections tab, and then click LAN settings. Keeping the above framework in perspective, let us explore the Option Calculator on Zerodha Trader (ZT). Marking over the Motilal Oswal Option Brokerage Calculator use, you can check the charges of each and every trade. I also see Dividend value plays important role in IV value. I have a query about the Options Calculator. Thanks for your kind response. Diwali trading hour would compensate to that.So my question is , Is not imputing calendar days give distorted results in option pricing. Zerodha Call Option Calculator. 2. An option calculator is a tool which helps you calculate the Greeks, i.e., the delta, gamma, theta, vega, and rho of an option. i know LTP – 10.8 is premium but it is Last traded price(premium), i want what is actual premium of nifty 50 index currently. Could you please explain me how to calculate option target price and stop loss price, If i sell 10300 nifty call options. Free stock-option profit calculation tool. Says “No data”. Brokerage payment however stays constant. I have three questions: Lastly, look at the bottom section of the Output field (highlighted in green). Number Of Shares ... and the charge can be determined through the Zerodha Option Brokerage Calculator. Stock price of A falls to zero, you make a profit of Rs.98 (Strike Price less Premium Paid, i.e. The charge however is Rs.20 per Trade for options. In this concluding post, we will understand the usage of an option calculator. We will also talk about the way that it impacts your trades and take away the profit. Is there anything wrong in my calculation or is this how it is meant to be? Hit calculate and you will get the IV value in %. If it is not readily available how do I calculate it? Just read your chapter. i saw this video is very very useful for me but my problem is what the currently premium running in the market. What IV should one use, if one were to derive the theoretical option value at any strike price ? ... Zerodha Broker (Free Delivery) India's No. I have fwd your query a colleague of mine, you should get a response soon. Xyz stock price is 100 For Intraday trading, you have to close your position on same day and if you know your breakeven point up front, it is easy for you to close your trade. Can you mention what feature you are talking about? E.g We all say that average IV for Nifty is 17-18% below that the options are cheap & above it expensive. But my funds show (Free Cash 10665.5), (Margin Used -150) and (Total Value 10515.5). This calc has been update for Year - 2021. The actual premium, if you mean the theoretical price of an option, you can use the option calculator. I wanted to know if I wanted the volatility for individual securities is it available somewhere? Please see the image below, I have calculated the values for Nifty 8000 CE (I have used dummy data) on both ZT and your source. The dividend field is blank since I have selected 8100 Nifty Call option ( index option), hence the value in ex-dividend date field is irrelevant. Also, you may want to check this – https://zerodha.com/tools/black-scholes. We get the following values on the output side: Along with the Greeks, the output includes either the implied volatility of the underlying or the theoretical option price. "Zerodha brokerage calculator " is a free tool to calculate your brokerage and taxes, which include stamp duty also. For eg. Usually the delta of a put is half that of a call option. One more question – I see that the delta of a put is always much lower than the call at the same strike price. is it a technical mistake?. If so please throw some light. Please help. may be sir, i’m not understand options but as for my knowledge is concern by the grace of zerodha varsity, options CE is buy when bullish is happen, example when i decide that share’s price is increase from my buying price(strike price) call option is made money for me and i will pay only premium. What can be the reason ? See the image below: Option calculators are mainly used to calculate the option Greeks, volatility of the underlying, and the theoretical option price. Could you please give the link for the same. example : – i have already added CE/PE options of nifty 50 from NSE >> OPTIDX and i’m watching only LTP, strike price …, etc but not even a single place where i can find premium which is charged by company currently. now that the web page is changed, i couldn’t find the calculator. Regards, Yes, Dividends do play an important role, you need to include the dividend amount and the ex divided date in the calculator. Note, Zerodha Trader (ZT) has two models based on which the Greeks can be calculated, i.e., Black-Scholes Pricing Model and another model called the ‘Cox-Ross-Rubinstein Binomial Method’. It is squaring off current and taking next month. Guess you are talking about a B&S calculator. You can use this tool to calculate Total Brokerage Charges & Taxes, Breakeven Point (Per Share) and Net Profit or Loss Per Trade upfront in an easy way. Zerodha Currency Trading is one of the many types of trading the discount broker allows to its clients. For the ‘interest rate %’, take the 91 day T-bill rate data from the RBI website. Please Let me know where can i find the options calculator in kite I have checked with different calculators also. where do i can find historical values of IV for Stock & Nifty options ? Thanx Have filled in below: First, What should go as IV in B&S formula ? If you want to calculate the ‘fair value of the option premium’ also called the ‘Theoretical Option Price’ then leave the ‘Actual Market Value’ field blank and proceed to enter the volatility data. I am looking to understand how to compare implied volatility (IV) with historical volatility. Please correct me if I’m wrong. For instance, You buy a lot of 10,00,000 in options commodities. Request you to provide link where in I can see Risk Free Interest Values. etc., Only those which trade on NSE/BSE. Hello Sir, How does these Greeks calculation make a difference in choosing call or put option can you please elaborate with example? How different or Similar is commodities trading from the normal NSE F&O traing? The biggest charges in Intraday trading is STT, as turnover is very high. Thanks for your modules on options, it changed lot of my views. In this case it would be 10. I checked now in Web Login, (the Opt Calc link what you have shown in the picture above). Any other site that I could use? The profit from this call option seems to increase exponentially as and when Bajaj Auto starts to move above the strike price of 2050 Generalization 2 – The call option becomes profitable as and when the spot price moves over and above the strike price. To invoke the option calculator, click Tools –> Option Calculator as shown below. Hence, the question, how do we know our theoretical values are correct and matching the real time market data! Latest Intraday leverages - MIS & CO ; Introduction of new F&O contracts on 16 individual securities . Thank you for your time and detailed explanation. Learn the benefits of opening ZERODHA account and how you can save money on brokerage if you open an account in ZERODHA. Suggest you to go through this: http://zerodha.com/varsity/. Not working in nest ver 3.11.2…. Sell Price(Rs.) However, by and large, the option calculators are fairly accurate. Now i’m pressing F6 to showing snap quote, not showing premium of nifty50. please help me find it. Where you can calculate your profit and loss within any segment such as equity, commodity, currency, any particular intraday, delivery, future, option. here how i can attach screen shot of my market watch list to more convenient. Reply. This tool will work for standard as well as flexible brokerage plans. Zerodha - India's biggest stock broker offering the lowest, cheapest brokerage rates for futures and options, commodity trading, equity and mutual funds Zerodha - Black & Scholes calculator About 1lot size 1000 Please login to Kite for a better trading experience. Interest rate is a key input variable in Black & Scholes option pricing model, and one must feed in a relevant value to get the fair price of the option, irrespective of the asset (equity, commodities or forex). Keep up the good work. Brokerage calculator Margin calculator Holiday calendar. It would be appreciated if in the expiry column the default time is set as 15.30 hrs instead of 23.59 hrs. With Zerodha Intraday trading calculator, you can find the exact number after which you can square off your position in profit. Have you checked this – https://zerodha.com/tools/black-scholes/, Not exactly Kartik,Lambda( *)is defined as the expected percentage change in the value of an option for a given percentage change in the value of the underlying spot price.That is * =[(C1-C0)/C0]/[(S1-S0)/S0] where as C0 and S0 are the option price and the strike price at starting point and C1 is the new option price when the stock price moves from S0 to S1. Not sure of any reliable online calculators for this. so the option prices would be as per 6 days to expiry, but what will happen to option prices on Monday morning I m trying to utilize the calculator in zerodha trader but nothing calculated. http://zerodha.com/varsity/module/option-theory/, http://www.nseindia.com/products/content/gi/product_gi.htm, http://zerodha.com/varsity/chapter/theta/. Have sent you and email requesting you for your contact details. All Rights Reserved. In the second post, we discussed the practical Application of Option Greeks with respect to options trading. Inputting the data into Zeroda BS option pricing formula with Nifty yesterday underlying close at 10210.85 for a strike of 10300 call with expiry as 26/10/2017, 15 30 hrs ,current day AV as 12.26 and RBI 91day treasury bill yield as 6.07 outputs to 38.58 as the call option price.But if the same is input to as 24/10/2017 as expiry dates shaving of the 2 day trading holiday ,option call price reflects to 27.81(settlement price is 28.45). I have three questions: Got it. Step 2 – After that click on F&O Margin Calculator. if nifty what dosent reach what i will get . You would also have received an email explaining this. can you please help clear my doubts on that? Hence for this reason, it is good to have room for the inevitable modeling errors. * Investments in securities market are subject to market risks; Read all the related documents carefully before investing. I had done some analysis . as no of days to expiry will be 4 that time. When pricing options using B&S model for Nifty index, should i input the Nifty Underlying price or Nifty Current Month’s Future price? If the actual option price is less than the theoretical option price calculated as per B&S calculator. Stock price 90 To change proxy server settings For this reason I personally prefer to set the dividend value to zero. You can add that option to the marketwatch. Nifty future profit loss will be calculated like this: Nifty future buy call 9800 to 9900 minted profit +100 points and its 1 point is equivalent to 75 rupees. Also can you clarify whether the historical volatility is derived from historical IV data or a standard deviation of underlying? Why does this happen even if i input all values correctly ? You can use this tool to calculate Total Brokerage Charges & Taxes, Breakeven Point (Per Share) and Net Profit or Loss Per Trade upfront in an easy way. This query is regarding calculation of theoretical value of options. If you opt to sell 5 option contracts, with 100 lots size, at Rs.350, which were earlier bought at the rate of Rs.300, Motilal Oswal Brokerage Calculator would show you Rs.350 as its charges. Sonu, as i mentioned before if the Option Calculator is built on B&S logic, there is no way the values could differ. I was having ITC 190 PE Option. Thanx Nithin. Will this tool available in Zerodha Kite? [email protected] Can we make a statement that we have used correct values of Time, Interest Rate and Annual Volatility during our B&S calculations when the sum of delta (Call+Put) of an ATM strike is ‘0’ or close to zero? See the image below, I have given the same input and I got the same result as in Zerodha Trader. UNQUOTE. - Buy Price (Rs.) I believe the total value should be 10665.5 + 150 instead of 10665.5 – 150. At Zerodha, I'm focused on helping not just our clients but the community at large to understand the capital markets better and help them make better choices in the market. 4) 16 june futures and press enter Check this – https://zerodha.com/resources , request you to check this page by end of day. What does that mean and why does it show this reason ? We begin by selecting either the ‘Underlying’ or the ‘Futures’ price. Hmm.. Show more less. let me convey you first what i have added to my market watch list and how. Help. Trying to calculate the value of IRB oct 230 PE. Will the option calculator work only during the Trading hours? Also can i hedge a stock option by buying/selling the futures of that stock instead of the underlying? To invoke the option calculator, click Tools –> Option Calculator as shown below. We reserve the right to decide which comment will be published. Nifty16JuneCE… | LTP – 10.8 | Bid – 2750 | ask – 2760 | …………………………|open interest – ……| ………….. etc showing. In case of puts, 100 calls will close at Rs 10, if stock closes at 90. Just besides the ‘Calculate’ button you have two options: Select Volatility if you want the option calculator to calculate the volatility for you. I logged in trader.zerodha.com. I tried searching for it but can’t get a clear result. if I put zero what will be the ex-dividend date? Please introduce this in the web based trading platform. I trade in Nifty Options. Sunil, we have an online option calculator: https://zerodha.com/tools/black-scholes. put primium 1.50 Like Dax, Nadaq.. Now, you should see a payoff graph and a table specifying the required margin. Along with all these, you also enter the current market price of the price for this particular strike. Is there any excel based B&S options calculator available which can calculate the prices on real time? Can you tell me the fair value of M&M 1360 CE on 24/03/17 if M&M price is quoting at 1360. The Option Calculator on Zerodha Trader usually works, but there may have been some update issue which is causing this. Second, NSE’s IV calculations are done assuming an interest rate of 10% (as claimed on the website). I have some basic questions which are inter related. thanks. "Axis Direct brokerage calculator "is a free tool to calculate your brokerage and taxes, which include stamp duty also.Usually other competitors are missing stamp duty. After this is done, you should be able to see the right Greek values on your option calculator. Nothing happens when I click button. If you calculate 0.03% of 10,00,000 you will get Rs. If you aren’t using NEST to place the orders, you’ll have to place multiple orders. Kiran, this feature isn’t present on Kite currently but is on our list of things to do. You need to enter the amount in which you are trading and the charge would remain Rs.20 per Trade. otherwise we use put option is made money for me and only pay premium. Keeping the above framework in perspective, let us explore the Option Calculator on Zerodha Trader (ZT). Once the underlying has been selected, you need to manually enter the value of the underlying in the ‘Spot Price (in Rupees)’ field. (this is related to reply given by u in option theory chapter 9,sorry). The delta of an ATM Call and Put should be more or less equal. Is there any other meaning of “exercising” an option apart from the former ? Varsity Trading Q&A. The inputs seems to be fine. With over a million clients, Zerodha is a leading digital stockbroking platform in India. CE/PE – limited loss and unlimited profit (only premium paid to the seller by me or buyer). I have been suggested by a colleague who is an Option Trader not to use the interest rate% to calculate fair value of calls and puts for Stocks and Indices. Let me know if anything need to be provided from my end. If I login to ZT, Pi gets logged off. It is the same as a Tax P&L report, and it is an essential document to calculate taxes on trading income. Zerodha Option Brokerage Charges for Commodities For commodities options trade, You will be charged 0.03% or Rs. Yes, this is the general idea behind estimating the theoretical option price. Support Portal. Use the Angel Broking Brokerage Calculator to the best of your capabilities, and you shall be earning significant returns. It turns out that the volatility of Nifty is 12.96% as opposed to 12.5175% as India VIX suggested. You can choose the expiry date on the calculator. The calculator below seems to do a much better job: What IV should one use, if one were to derive the theoretical option value at any strike price ? I gave the required parameters for BNF option. Just wanted to know – is it safe to assume that the Delta for a futures contract is always 1? You can send it to [email protected]. All options in INdia get exercised automatically. Checked the RBI Link that was posted above for Risk Free….however would not find the value. For example search for Reliance 1000 strike price CE on Kite, you can add it to watchlist. Zerodha - India's biggest stock broker offering the lowest, cheapest brokerage rates for futures and options, commodity trading, equity and mutual funds Well, the difference is less than 50 basis points; this should also explain why the calculator calculated the Theoretical Option Price as 81.14 as opposed to 83.84. On the NSE’s website, the IV figures are published for each strike in call/put option. Dear Nitin/Venu Thanks. Hola, you are done! Case – I exit this position same day This should help you use ZT without a problem. Lot size 1000 Nevertheless, do not forget to carry out an exhaustive analysis of this stock before employing margin on top of it. I’m in the process of getting my commodity account activated at Zerodha. There is an option available already, please visit trade.zerodha.com and login with your credentials. I have an excel incorporated with BS Model – If the IV is 42 or 43 in Nse – my xl says 47. is this right? I’m afraid historical IV’s are not easy to source. Along with the Option Greeks, we also get, The Implied volatility of the underlying, provided one of the input is the option price or, The theoretical value of option’s premium, provided the input is the implied volatility of the underlying. Sunil here. Why don’t u go through the option module here: http://zerodha.com/varsity/. See the following image: Can we get live option geeks columns along with option chains like delta, gamma . LTP is what you can trade on. Nothing that I’m aware of, you can look it up on the internet. hi karthik, Zerodha Streak - Semi-automated Algo Trading Platform, Zerodha Coin Review - Mutual Fund Investment, Buy Gov Securities and Bonds with Zerodha, Applying in IPOs through Zerodha using UPI, Deepak Fertilisers & Petrochemicals Corporation Ltd, Industrial & Prudential Investment Co. Ltd. When doing Intraday trading, it is important to know your breakeven point. See the image below: For individual stocks, you need to keep track on their corporate announcements. Greek In MW: Error in Initiating OptPrice DLL Object Best to send all account specific queries to [email protected], Sir sir,please tell me if the stock is not going ex-dividend within the current expiry…..shall I put zero in that case or leave the dividend column blank…… 01-Oct-2014 20.77 3.40 1.32, So what would be the dividend amount and dividend date that I have to input in calculator. Rs.100-Rs.2). The following image shows the output: The first field in the output field is the theoretical option price (also called the fair value) of the call and put option. When doing trade in Futures (Equity or Index), you can take a long and short position, but in both the cases you must know your breakeven point and proper exit timing. This will depend on your turnover, segment, state and some factors. 1. The difficulty is basically because of the issue arising out of tracking dividend across 50 companies and the ‘time & Price’ effect on options. I just double checked on version 3.11.2 and it seems to work fine. Other F&O credits - Any other derivative segment credits (i.e. Please do let me know if you have queries. Further, I input the “Actual Market Value” of the 8100 Call option as observed on NSE, which in this case happens to be 83.85 (see the NSE Quote image above). I get the following message : Z5 is now kite.zerodha.com The last input field is the number of days left to expiry. Trade in any number of shares, 10, 100 or even 1000, and the charge would remain Rs.20 per Trade. All settings are as per your instructions. Please check the attached file. The markets do factor in the weekends as well whilst deciding the option premium ; may not carry the same weightage that traded days carry. Angel Broking Flat ₹20 per trade. No more taking … Benefits of Opening ZERODHA Account | 3% Nifty Option Strategies Trade Limited Profit & Loss - TheOptionCourse.com This lets the Indian trader react to news that can affect his position for most part of the day. Commodities trade internationally, even though by the time Indian markets open at 10 am most of asia has already opened. 2. https://zerodha.com/tools/black-scholes/. Margin requirements are quite less as compared to equity future contracts. We have explained this in detail here – http://zerodha.com/varsity/module/option-theory/. 1 Broker with Best Software Trade @ Flat Rs 20 Open Instant Account. The Zerodha F&O calculator is the first online tool in India that let's you calculate comprehensive margin requirements for option writing/shorting or for multi-leg F&O strategies while trading equity, F&O, commodity and currency before taking a trade. Thanks. The Zerodha Margin Calculator Futures one of the simplest and most efficient tool to calculate margins across various options and futures segments. 20/executed order whichever is lower. I am so excited to be using this !! Some issues, we will get it in sometime. i mean based on the info we have that is Gamma,Delta, Theta,Vega,Rho how to decide which option to buy or sell? Sticks price 100 Is it something different than squaring off your position for current series and taking same position in next month series ? hi plz make some video on options it will be use full for new option traders. The calculated prices are comparatively inflated using the formula. See the image below: Goto Nse India website, on homepage –> Products–>Indices–>Historical data –>click on PE,PB, and Div link.