Geez!!! This did open my eyes! I was doing this strictly with Excel copying and pasting data from the option chain list. I did not know I could do this sort of thing in TOS.
this is a great tool ! thank you for this calculator. i'm trading in the money calls. the calculation is naturally different. you think it can be done ? need to take the premium and subtract the difference between the stock price and the strike ? right?
Perfect! This is very helpfull! Is there a way to calculate the profit according to the price I paid for the stocks I own? I think you have mentioned something at the end but I could not find an additional video...
Glad it helped! We have a version of the Covered Call Calculator, along with a Wheel Option Calculator (for calls + puts), built for Volatility Box members (free download for members), which allows you to input your cost-basis for the stocks you own. tosindicators.com/indicators/advanced-covered-call-calculator tosindicators.com/indicators/wheel-option-calculator
Thanks Kevin, glad you liked the video! You can also build a similar calculator for selling puts as part of the wheel, and optimize that process as well.
Hi Kevin - You could leverage the existing code and concept to create your own version of a "selling cash-secured puts" calculator with your own set of features (ie. return % based on the premium collected, your break-even price, etc.)
Excellent indicator - TDA/TOS should purchase this from you! I no longer have to have my calculator in-hand when looking at covered call opportunities. How did you add the covered call price scale to the chart?
Excellent video. I am trying to build an option scan based on the custom quotes presented on the video. When setting up the scan, I can not find the custom quotes that have been setup to add them as a condition. Any thoughts, ideas? Thanks once again
this is awesome. i used to do this in excel.. now have this useful script.. is there options scanner for looking for OTM calls that are above % and any relation to delta? thanks
Hi there - you may find the "GetNextOTMOption" and "GetNextITMOption" functions to be useful in building a calculator for credit/debit spreads. The rest of the logic should be similar to this video.
I don't believe you can resize the columns, but it may help to remove any other custom quotes you have to reduce the number of columns, and naturally expand the width of each column.
They definitely need to add that to think or swim. People have been asking for that for over a decade. I've never seen somebody who has found a way to do it.
Excellent content. Thanks. Please consider adding a 3rd column for annualized return so different expirations can be compared as apples to apples comparison.
How did you calculate the 1% cash flow for the real estate example? Were you factoring in a bank loan to make the cash purchase of the home at a certain level of downpayment? I know the real estate example isn't the point of the video, but I am trying to weigh these choices in real life and want to make a correct comparison before choosing.
Wheel calculator takes both sides of the 'wheel strategy' (ie. puts & calls), instead of just covered calls piece. You can also use the cash-secured put calculator we have, but would need to manually load each one in, based on the side of the wheel you're looking to test/analyze.
I really appreciate the video. Similar to this and the cash secured option video, how would you script a profit tracking parameter based on the actual impact to buying power/cash required for the position? The current % ROI in ToS doesn't calculate it that way and it would be useful to do that. Also I'm interested to hear more of your perspective/metrics that you like to use for trade management. Keep up the good content! Subscribed.
Hi Moon Dawg - you can download the script from our website and compare with your version to see where you may be facing issues. Download link is in the description box of the video.
Is the % ROI always based on the ATM strike? What if I have a deep ITM long call... I think the ROI if assigned is different... Edit: Just realized your calculator is based on purchasing underlying shares ATM. Not for CC sold against ITM long call...
Hi Andrew - The Wheel Option calculator lets you input a manual cost basis, to use for ROI calculations on both ends. Download here: tosindicators.com/indicators/wheel-option-calculator (you'll need to be logged in using your Volatility Box credentials for access).
I really like the effort here but I'm hoping you have the willpower to address a potential hiccup in the script... I found that the calculation for premium is based on the LAST PriceType instead of the MARK. In many cases, the current MARK is significantly different and shows a highly inaccurate picture of profit potential. I noticed in the case of CHWY the calculation based on the LAST option value is 3.75 (the last option price transaction). However, as the stock fell, so did the value of the option. The MARK (the current price of the option) shows 2.15 while the LAST stays at 3.75! I think it would be ideal if the 'close' used in the script was based on the MARK(?) since it would provide an accurate, more up to date value. I tried changing the 'FX Price Type:" (in the upper right of the editor window) to 'MARK' and even changed the aggregation from 'D' to a variety of other intraday timeframes. Unfortunately, it seems the LAST value of 3.75 is always used. This isn't meant to belittle the effort! I am learning a lot from your work. For the most part the scan is still providing great info... but the lag I'm seeing between the LAST and MARK is concerning. Then again I may be doing something wrong. I'm no developer/coder so I don't know how to modify the script to obtain the 'MARK'. Can you (or anyone else) provide any constructive insight?
Hi John - If you'd like to use the MARK, you can specify that in the PriceType parameter for the close variable. Documentation + Example here: tlc.thinkorswim.com/center/reference/thinkScript/Constants/PriceType/PriceType-MARK
Could you also show us how to build a scan or watchlist to find the best stocks to write covered calls?
how do you screen for covered call candidates
Genius! Best content out there on TOS period!!
Thanks Damion! Appreciate it.
Geez!!! This did open my eyes! I was doing this strictly with Excel copying and pasting data from the option chain list. I did not know I could do this sort of thing in TOS.
Glad to hear it! TOS can be very powerful, when used correctly.
this is a great tool ! thank you for this calculator. i'm trading in the money calls. the calculation is naturally different. you think it can be done ? need to take the premium and subtract the difference between the stock price and the strike ? right?
Perfect! This is very helpfull!
Is there a way to calculate the profit according to the price I paid for the stocks I own?
I think you have mentioned something at the end but I could not find an additional video...
Glad it helped! We have a version of the Covered Call Calculator, along with a Wheel Option Calculator (for calls + puts), built for Volatility Box members (free download for members), which allows you to input your cost-basis for the stocks you own.
tosindicators.com/indicators/advanced-covered-call-calculator
tosindicators.com/indicators/wheel-option-calculator
Great video, thanks for sharing. Are you using the Fibonacci Retracement Indicator at right on the chart?
Im learning to trade the wheel strategy, this is huge. Thank you, almost thought you guys stopped posting.
Thanks Kevin, glad you liked the video! You can also build a similar calculator for selling puts as part of the wheel, and optimize that process as well.
@@TOSIndicators would it work for selling naked puts
Hi Kevin - You could leverage the existing code and concept to create your own version of a "selling cash-secured puts" calculator with your own set of features (ie. return % based on the premium collected, your break-even price, etc.)
Excellent educational content. Thank you
My pleasure, Rafi!
Love it. Very useful.
Thanks Taj! Appreciate it.
Excellent indicator - TDA/TOS should purchase this from you! I no longer have to have my calculator in-hand when looking at covered call opportunities.
How did you add the covered call price scale to the chart?
Excellent video. I am trying to build an option scan based on the custom quotes presented on the video. When setting up the scan, I can not find the custom quotes that have been setup to add them as a condition. Any thoughts, ideas? Thanks once again
Hi Javier - you would need to manually add in the custom quote code as a custom study filter for scans.
this is awesome. i used to do this in excel.. now have this useful script.. is there options scanner for looking for OTM calls that are above % and any relation to delta? thanks
love the video, but was wondering if you could use this for Credit Spread or Debit Spread?
Hi there - you may find the "GetNextOTMOption" and "GetNextITMOption" functions to be useful in building a calculator for credit/debit spreads. The rest of the logic should be similar to this video.
Use vertical spread filter
Can I do a scan using the newly created parameters
Can you do this on mobile?
Can the column width be adjusted as portion of the content doesn't fit.
I don't believe you can resize the columns, but it may help to remove any other custom quotes you have to reduce the number of columns, and naturally expand the width of each column.
They definitely need to add that to think or swim. People have been asking for that for over a decade. I've never seen somebody who has found a way to do it.
Excellent content. Thanks. Please consider adding a 3rd column for annualized return so different expirations can be compared as apples to apples comparison.
How did you calculate the 1% cash flow for the real estate example? Were you factoring in a bank loan to make the cash purchase of the home at a certain level of downpayment? I know the real estate example isn't the point of the video, but I am trying to weigh these choices in real life and want to make a correct comparison before choosing.
Hi Jared - the 1% was lifted from a real, turnkey property listed for sale (at the time) in Indianapolis.
How is the wheel calculator superior to this?
Wheel calculator takes both sides of the 'wheel strategy' (ie. puts & calls), instead of just covered calls piece. You can also use the cash-secured put calculator we have, but would need to manually load each one in, based on the side of the wheel you're looking to test/analyze.
I really appreciate the video. Similar to this and the cash secured option video, how would you script a profit tracking parameter based on the actual impact to buying power/cash required for the position? The current % ROI in ToS doesn't calculate it that way and it would be useful to do that. Also I'm interested to hear more of your perspective/metrics that you like to use for trade management. Keep up the good content! Subscribed.
thank you!!; can you help me to understand why in the formula you divided multiplied by 100, I really appreciate
Hi Javier - glad you liked it! 1 option's contract = 100 shares, which is why the arithmetic happens, to compare to 1 share of the underlying.
having trouble adding [strike price gain] in the script
Hi Moon Dawg - you can download the script from our website and compare with your version to see where you may be facing issues. Download link is in the description box of the video.
Is what your traying to do have to do with, Last traded price - Strike price = Lost/gained money upon execution?
Is the % ROI always based on the ATM strike? What if I have a deep ITM long call... I think the ROI if assigned is different... Edit: Just realized your calculator is based on purchasing underlying shares ATM. Not for CC sold against ITM long call...
Hi Andrew - The Wheel Option calculator lets you input a manual cost basis, to use for ROI calculations on both ends. Download here: tosindicators.com/indicators/wheel-option-calculator (you'll need to be logged in using your Volatility Box credentials for access).
You rock!
Thanks Chris!
Very timely. Especially because there is no ROR for calls
Awesome stuff
Thanks Nosler! Appreciate it.
I really like the effort here but I'm hoping you have the willpower to address a potential hiccup in the script... I found that the calculation for premium is based on the LAST PriceType instead of the MARK. In many cases, the current MARK is significantly different and shows a highly inaccurate picture of profit potential. I noticed in the case of CHWY the calculation based on the LAST option value is 3.75 (the last option price transaction). However, as the stock fell, so did the value of the option. The MARK (the current price of the option) shows 2.15 while the LAST stays at 3.75! I think it would be ideal if the 'close' used in the script was based on the MARK(?) since it would provide an accurate, more up to date value. I tried changing the 'FX Price Type:" (in the upper right of the editor window) to 'MARK' and even changed the aggregation from 'D' to a variety of other intraday timeframes. Unfortunately, it seems the LAST value of 3.75 is always used.
This isn't meant to belittle the effort! I am learning a lot from your work. For the most part the scan is still providing great info... but the lag I'm seeing between the LAST and MARK is concerning. Then again I may be doing something wrong. I'm no developer/coder so I don't know how to modify the script to obtain the 'MARK'.
Can you (or anyone else) provide any constructive insight?
Hi John - If you'd like to use the MARK, you can specify that in the PriceType parameter for the close variable.
Documentation + Example here: tlc.thinkorswim.com/center/reference/thinkScript/Constants/PriceType/PriceType-MARK
@@TOSIndicators yeah... I tried using mark in place of close. Unfortunately the editor does not allow for its use for some reason. I was hopeful!
Weird - works fine for me. Make sure "MARK" is inside of quotes, for the priceType parameter.
Perhaps you can use following
Def mark = (bid+ask)/2;
Now we need Cash secured PUTs
Thanks for the suggestion... I can add that to the backlog for tutorials :-)
Do it please