LTP Calculator: Option Entry, Stop Loss and Target

Where do I find the LTP Calculator?

Tap the LTP/Chg cell of any strike in the option chain. The CE half opens the call calculator, the PE half opens the put. The pop-up title tells you which one you got, for example LTP Calculator · 22500 CE.

It works on the live chain (an AOC Pro feature) and on the replayed chain inside the Back Tester. The option's LTP, delta, gamma and theta are taken at the moment you tap and stay frozen while the pop-up is open, so close and reopen it if the market has moved a lot.

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How do I calculate an entry price?

1. Tap the CE or PE LTP/Chg cell of the strike you want to trade.
2. Type the underlying price you expect in the box. It opens pre-filled with the current spot (or future) price, and Paste drops in a number you copied, such as a support level from the strike S/R pop-up.
3. Pick Spot or Future as the pricing basis. The default follows Default pricing in Settings.
4. Pick Buy or Sell.
5. Read the four boxes: LTP, Entry, SL and Target. Tap a number to select it for copying.

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How does the calculator work out the prices?

Entry is the option's estimated premium when the underlying reaches your target price. AOC moves the current LTP by delta and gamma for the distance between today's price and your target, then takes a small theta deduction. It is a greeks-based estimate, which is why the pop-up says so in red under the boxes.

Stop loss and target are not fixed percentages. They come from the strike's own width: the gap between its resistance and support reversal levels (50 points if that gap is not available). For a Buy, the stop is the premium at half that width against you, and the target is the premium at the full width in your favour. For a Sell it flips: the stop is half the width against a short, the target the full width.

The small numbers in brackets are the differences: Entry minus LTP, the loss from Entry to SL, and the profit from Entry to Target, all in premium points.

Worked example: buying a NIFTY call at support

Say NIFTY spot is 22,480 and the 22,500 CE trades at 120, with delta 0.50, gamma 0.0008 and theta of minus 14. The strike's support is around 22,440 and resistance 22,540, so the width is 100 points.

You expect a dip to 22,420 and type that in, on Spot, side Buy. The calculator shows Entry near 89.4 (minus 30.6 from LTP), SL near 67.8 (a 21.6 point loss, priced at 22,370) and Target near 138.6 (a 49.2 point profit, priced at 22,520).

Place a limit buy around 89 and you are not chasing the option when the dip comes.

When should I not trust the numbers?

• Big moves. Delta and gamma describe small moves well; a 300 point target on NIFTY can be off by a lot.
• IV changes. The estimate assumes implied volatility stays where it is. An IV crush after an event makes real premiums lower than shown.
• Expiry day. Gamma and theta change by the minute, and the frozen greeks go stale fast.
• Illiquid strikes. If delta is zero or the LTP is stale, the output means nothing.