Our Probability Calculator helps you become a smarter investor by determining the likelihood of stock reaching a certain price level by a certain Expiration Date. Demand and supply of at-the- money and near-the-money options help determine Probability of Success. Higher Probability of Success means trading Strike Prices will be further away from current underlying stock price and vice versa. Probability Calculator can also be used to determine current trend and Stock Ranking.
A traditional Probability Calculator does not have a Directional Bias and only indicates, based on the demand in the market for options, how wide the range will be for the stock by the Expiration Date. Tradespoon’s Probability Calculator, on the other hand, actually gives you a Directional Bias by giving you a Short-Term Trend and Long-Term Rating. The most important aspect of the Probability Calculator is that it can be used for Strike Price selection.