Adding and Removing Scenarios in Profit Loss

At the bottom of the Profit Loss Window you can add, adjust, or delete different pricing scenarios that reflect changes in Days to Expiration, Volatility, and Interest Rate.

By default, two scenarios are included when you build the Profit Loss Graph. A black line represents the first scenario and is based on the pricing of the option on the day of expiration. The blue line represents option pricing based on the current option implied volatility and how far the option is from expiration on the current day. For option spreads, the Profit Loss Graph estimates the spread volatility by combining the individual current implied volatility of the various options that make up the spread. The Interest Rate defaults to the current 90 Day LIBOR Rate.

  • To temporarily remove a scenario from the Profit Loss Graph, clear the Scenario box.

  • To remove a scenario from the Profit Loss Graph completely, click X next to the scenario you want to delete.

The default black line cannot be removed completely; however, you can clear it from the graph view when you clear the Scenario box.

  • To model an additional scenario, at the bottom of the Profit Loss window, click +Add Scenario.

The system adds a scenario (represented by a red line) to the Profit Loss Graph.

  • To change the colors of the Profit Loss Line, in the At Expiration or Scenario Line Color list, click the color you want.

  • To change a scenario's Days to Expiration or Interest Rate, move the slider bars to the location you want or enter a number in the text box.

  • To change volatility move the slider bar to the location you want or, in the Volatility list, click the volatility value you want.

As you change the stock price, number of days to expiration, volatility, and interest rate, the system re-calculates the following Theoretical Values fields:

  • Price of Spread
  • Delta
  • Gamma
  • Theta
  • Vega

These new values display to the right of each scenario you add to the Profit Loss window.

To change the theoretical value, in the Theoretical Values at $ box, enter the dollar amount you want or click the Profit Loss Graph.

When you enter a new theoretical value, the Price of Spread will adjust to the projected value of the option or spread at that new price.

Profit Loss Menu

The Profit Loss menu contains actions to execute common tasks, including printing, help content, detaching / attaching windows, and closing windows. The actions available may vary slightly from one tool to another.

Symbol Lookup

Symbol Lookup, which is included within most tools in ScottradeELITE, provides you with more information about a company via its symbol.

Minimize / Restore

Minimize and restore buttons are available on the top bar of all active windows on the ScottradeELITE platform.