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.
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.
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.
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.
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.
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.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.