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Online Broker TradeKing Launches its Probability Calculator to Help Investors Estimate the Potential
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Added: 02/09/2006
Type: Summary
Viewed: 327 time(s)
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Online Broker TradeKing Launches its Probability Calculator to Help Investors Estimate the Potential
Equity investors and options traders looking for an edge on how stock prices might react to anticipated events now have access to a new online stock trading calculator that draws on the predictive power of options trading to gauge the probability of future share price movements.
Using real-time option pricing data and a bell-curve distribution, the TradeKing™ Probability Calculator, available at www.tradeking.com, calculates the likelihood of a stock or index moving above or below a chosen target price at a future date. Equity traders or options traders, for example, can estimate the probability of a given stock touching a target price by a selected date.
"Taking the stock price of Google as an example, the TradeKing probability calculator today says that the probability of Google shares touching $400.00 by February 28, 2006 is 68.8% and the probability of Google touching $350.00 by the end of the month is 31.3%," said Donato A. Montanaro, Jr., TradeKing’s co-founder and CEO. "With Google shares trading around $368, this is a very useful tool."
"At TradeKing, we don’t believe investing should be a solitary experience, which is why we created a tool to help investors tap the collective wisdom of the market to help them make buy, sell or hold decisions," added Montanaro. "Our probability calculator can illustrate, in real-time, exactly how the option market is handicapping the price outcome for a particular stock, which is valuable data for any kind of investor or investment strategy." The probability calculator – an everyday tool used by market makers, floor traders and hedge funds – is available free to TradeKing customers.
The TradeKing Probability Calculator filters complex pricing and statistical data into a cleanly designed, easy-to-use web page with pre-populated data fields, informative charts and straightforward tools to explore stock price outcomes.
"Our goal is to offer simple, yet sophisticated tools that help investors truly understand the risks and rewards in the marketplace," added Montanaro. "We want our retail investors to benefit from the same trading tools available to professional investors. Tools like this online stock trading calculator demystify the investing experience and make it more engaging and effective for everyone."
TradeKing, at www.tradeking.com, is a nationally licensed online broker dealer offering a flat
fee of $4.95 for both equity and option trades, plus 65 cents per contract for options, with no hidden fees or account minimums. The TradeKing Web-based platform features powerful online equity and options trading tools including real-time portfolio information, advanced order entry, customized charting and alerts, free research and integrated news, stock, option and mutual fund screeners, volatility charts, a pricing probability calculator, enhanced option chains and interactive educational information.
TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment advice. Online trading system response and access times may vary due to market conditions, system performance, and other factors. Non-U.S. residents may be subject to country-specific restrictions. Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options available at www.tradeking.com. $4.95 commission rate applies to equity and option trades. See www.tradeking.com for more details on trade commissions for low priced stock, bonds, mutual funds and other securities. Add 1 cent per share for the entire order for stocks priced $2.00 or less.
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