Option Chain Probability - Implied Volatility Excel Sheet

Option Chain Probability - Implied Volatility Excel Sheet

Buying and selling options are risky and traders need tools to identify the probability of success.

This blog will help you to calculate the probability of making money in an option trade with this free excel sheet. Many techniques are there but the simplest is based upon understanding the math behind it.

To find the probability of the direction of the market based on implied volatility follows these steps.

1. Download implied volatility excel sheet 
2. Visit NSE 
3. Check the closing price of nifty 50.
4. Fill the closing price in excel sheet in current stock price column e.g. 11000
5. Check the implied volatility of  11000 call side and put side
6. Fill implied volatility data in excel sheet 
7. Calculate days left for expiry.
8. Check the highest open interest build up call side and put 
9. Fill the strike price that has the highest open interest call side and put aside.
10. Check the probability of hitting the strike price 
11. Higher probability shows the probability of hitting that strike price.

Relationship between implied volatility and historical volatility

Why implied volatility increase or decrease in options?

How to find reliance industries correlation with nifty?