Options Trading Tools on Webull: TPSL Order & Options Calculator
Options trading involves more risks than stock investing, for the price of an options contract is driven by many factors. The two tools illustrated in this article are designed to help users better understand the options risk/reward profile and manage options positions.
Take Profit / Stop Loss Order
Just like in trading stocks, the Take-Profit/Stop-Loss (TPSL) order is a powerful tool for investors to protect their options positions, especially in a volatile market.
- A take-profit order will automatically close your positions once the target price is reached to lock in profits.
- Similarly, a stop-loss order will be triggered when the target price is reached to stop losses.
FYI, you can set the target price by TPSL order in two ways on Webull:
1. Set a target price at the beginning of your trade:
2. Set the target price of your existing options position:
Options Calculator
The Options Calculator is a real-time, easy-to-use tool that helps investors calculate a contract's theoretical value, price change, and changes in Greeks under selected parameters. Of course, you can modify the parameters if needed.
The options calculator provides a straightforward way to visualize a specific option contract's performance and risk factors during its lifecycle. For example, if the parameter stays unchanged, an option's theoretical value declines as the expiration approaches. This makes options depreciating assets, assets that naturally lose value over time.
Please note: We only support the calculation of single options. The calculated result is theoretical and for reference only. The theoretical price uses basic assumptions from the Black-Scholes Model, which may differ from the actual market price.
Entry: Options>Double Tap on a Specific Options Contract>Calculator
Can I Use These Tools in Paper Trading?
Whether you have traded options or not, you can try paper trading to explore and learn at 0-cost. Paper trading in a demo account only supports market and limited orders to open or close your options positions. You can still use the options calculator to check the detailed risk factors of a specific contract.
