OptionCalc is an iPhone mobile application that does the following
Usage: There are 3 main pages/views in the application. Users of this application are supposed to have basic understanding of option pricing. The main page comprises of user input for option pricing. For the same input, you can easily switch between month/day/year options to quickly see the option price. For the given data, you can quickly see the straddle prices and plot results. You can easily compute 'implied volatility' to see what market thinks how the stock fluctuates.

EMail support: Your feedback is important to us in coming up with the next version of improvements. Please email all your questions and suggestions to JayaRagaven@gmail.com

How to use Pricing View


Enter the parameters for Stock Price, Strike Price, Volatility(%), Risk free rate(%), Dividend(%) and the expiry. The expiry can be entered in DMYA (Days, Months, Years or Absolute) format. In other words, you would enter 0.25 in 'Absolute' format for 3 months expiry. After entering your parameters (sample data is populated is for your understanding), select the 'Price it!' button. The table to the left bottom of the view is populated with Call,Put and the Option Greeks. You can scroll down to see all the Greeks. Remember to select 'Price it!' button after every change of data you choose to edit.

How to use Straddle View


For the set of data entered above and option prices/Greeks thus calculated, it is now possible to have a straddle view of Options. In this view, you can see Call,Put option prices for various Strike prices. There are 5 steps above and 5 steps below the Strike Price choosen in the Pricing View (in this screenshot, it is 100, shown in yellow color). When the stock price is 200+, you can change the step size to be a meaning value like 25 or whatever you like. Similarly, when the stock price is 25 or less, you can have the step size to be 2. This step size is remembered for the current session when you select 'Return' and come back again to this view. When you change the 'Step Size', you need to select the 'Recalc' button. Selecting 'Return takes you back to the 'Pricing View'.

How to use Implied Volatility


Once you calculate the Option put/call price, you can go any financial website like Yahoo or Google, to verify the Market price of Call/Put Prices. In most of the cases they will be off because we started with an assumption of 20% volatility. The market priced the option with a different volatility. To find that, you need to enter the 'Market Price' of the 'Call' Option and select the 'Implied Vol' button. Make sure that you are correctly entering the 'Market Price' for the correct expiry. You will then see a popup dialog with the market assumed Implied volatility. To verify, you can plugin volatility=22.467562 in this example and select the 'Price it!' button. You will see that our price and market price matches. You can then proceed to see 'Straddle View' or Plot view, once you have correct volatility.

How to use Plots

After the pricing is completed, you can select 'Plot' button to see the plot of stock vs Call/Put/Vega/Rho.This gives you some rough extrapolation of Option values at different stock prices. Selecting 'Return takes you back to the 'Pricing View'. Other plots are shown below.

Demo Demo Demo