Forecasted Profit & Loss
Look forward in time and see how a strategy would perform between now and expiration.
What is the Forecasted Profit & Loss feature?
With lookback’s forecasted profit & loss feature, you can enter a trade with any underlying to see the potential profit/loss until expiration, how that changes with price movements, and the probability of the underlying being above or below a certain price at a certain date.
- Analyze current positions and develop a stronger understanding of where you’d would see profit, and how likely that is over time.
- Adjust the strikes for your trade to see how that influences the forecasted profit and loss and the probabilities associated with that.
How to use the Forecasted Profit & Loss feature?
1. Forecasted Profit/Loss Tab
To utilize the “Forecasted Profit/Loss” tab, you’ll first have to enter a symbol in the top bar. Upon entering the symbol, you will be able to see the daily move for that underlying asset within the “Forecasted Profit/Loss” tab.
The default time frame is 6 months and the period of time each candle represents is 1 day. If you would like to change that, navigate to the top left corner of the chart and you can click on the drop down menus to alter the time frame of the chart as well as the period of time for each candle.
2. Select a Position
In order to fully utilize the functionality of this tab, navigate to the “Chain” tab and select a position that you would like to analyze. Once you have a position selected, head back over to the “Forecasted Profit/Loss” tab.
3. Excepted Move Cone
You will see an expected move cone start to form, with varying shades of red and green. This cone represents the two standard deviation bell curve moving forward in time. The red shaded areas indicate a loss, the green shaded areas indicate a profit, and the white areas indicate small profits or losses. The more full the shade of green or red, the larger the profit or loss.
4. Expected Return
By hovering over the expected move cone, you can see what the expected return would be at the price and date where your cursor is by looking at the top left corner.
5. Probability of Price
As you hover over the expected move cone, you can also see what the probability of the price being above or below that level is. This allows you to see how your position will develop over time, and how likely you are to receive any profit on your trade.
More Features on Lookback
Options Backtesting
See how a strategy has performed historically or may perform in the future with the options backtesting feature in lookback.
Forecasted Profit & Loss
Look forward in time and see how a strategy would perform between now and expiration.
Analysis & Statistics
Analyze current positions to understand how price and time impacts your P/L, delta, and theta values.
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