Basic Option Graph Step 9

Add and Replace Code

There is one line of code in the EquityOption Class that needs to be changed. Find the code as in the picture below, and change the ".01" to "0".

We have new code to add to three "code behind" areas - OptionsCalc.vb, EquityOption.vb, and Form1.vb.

The code for OptionsCalc.vb and EquityOption.vb will be ADDED to what was already in the Option Calculator Project.

The code for Form1.vb REPLACES everything that is currently there, which should just be "Public Class Form1", the TestNames() sub, and "End Class" if you have been following the instructions.

In these instructions, we won't go into much detail about what the code is doing. If you are interested in programming, you can study it all you want and/or e-mail questions to support@option-graph.com and we will either answer directly, or through an entry in the FAQS for this project. If you are more interested in using Basic Option Graph and not learning programming, you don't really need to know about the programming details.

First, click on the tab that says "OptionsCalc.vb" and ADD the following code to a blank line after the last "End Sub" but before the line that says "End Class".

Function middate(ByVal dte1 As Date, ByVal dte2 As Date) As Date Dim diff As Integer = DateDiff(DateInterval.Day, dte1, dte2) If diff < 2 Then Return dte1 Else Return DateAdd(DateInterval.Day, CInt(diff / 2), dte1) End If End Function Function earliestincludedexpiration(ByVal dte1 As Date, ByVal dte2 As Date, ByVal dte3 As Date, ByVal dte4 As Date) As Date Dim expdates(3) As Date expdates(0) = dte1 expdates(1) = dte2 expdates(2) = dte3 expdates(3) = dte4 Array.Sort(expdates) Return expdates(0).Date End Function Function latestincludedentry(ByVal dte1 As Date, ByVal dte2 As Date, ByVal dte3 As Date, ByVal dte4 As Date) As Date Dim entdates(3) As Date entdates(0) = dte1 entdates(1) = dte2 entdates(2) = dte3 entdates(3) = dte4 Array.Sort(entdates) Return entdates(3).Date End Function Function averageincludedstrike(ByVal s1 As Single, ByVal s2 As Single, ByVal s3 As Single, ByVal s4 As Single, ByVal s5 As Single) As Single 'returns average included strikeprice rounded to nearest .50 Dim strikes(4) As Single strikes(0) = s1 strikes(1) = s2 strikes(2) = s3 strikes(3) = s4 strikes(4) = s5 Dim count As Integer Dim sum As Single For i As Integer = 0 To 4 sum += strikes(i) If strikes(i) <> 0 Then count += 1 Next If sum = 0 Then Return 0 End If Return Math.Ceiling((sum / count) * 2) / 2 End Function

Next, click on the tab that says "EquityOption.vb" and ADD the following code to a blank line after the last "End Sub" but before the line that says "End Class".

Function expdate() As Date If include = True Then Return exp Else Return #12/31/9000# End If End Function Function entdate() As Date If include = True Then Return entry Else Return #1/1/1900# End If End Function Function strikeprc() As Single If include = True Then Return strike Else Return 0 End If End Function Function pchart(ByVal sp As Single) As Single If include = True Then Return optionvalue(sp, strike, timeleft(entry, exp), intrate, ivol, div, otype) Else Return 0 End If End Function Function vchart(ByVal sp As Single) As Single If include = True Then Return pchart(sp) * valuesign() * numc * 100 Else Return 0 End If End Function

Now, click on the tab that says "Form1.vb", copy all of the code below, and replace EVERYTHING that is already in the code behind, INCLUDING "Public Class Form1" and "End Class".

Imports System.Windows.Forms.DataVisualization.Charting Public Class Form1 Dim checkdate As Date Dim checkprice As Single Friend leg1, leg2, leg3, leg4, leg1check, leg2check, leg3check, leg4check, leg1exp, leg2exp, leg3exp, leg4exp As EquityOption Friend stockleg1 As EquityShares Friend lastentry, earlyexp As Date Friend entrydrcr, startprice As Single Friend range As Integer Private Sub Form1_Load(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles MyBase.Load setstartupposition() setupchart() Messages.Text = "Reminder: Double-Click any number to change it quickly" Messages.ForeColor = Color.Blue B_FindPrice.PerformClick() End Sub Private Sub FindButtonsHandler(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles B_FindPrice.Click, B_FindIV.Click createlegs() setcheckprice() If checkprice = 0 Then Chart1.Visible = False setzeros() Messages.ForeColor = Color.Red Messages.Text = "No Legs are Included or all Legs are 0.00" Exit Sub End If resetcheckdate() If checkdates() = True Then Chart1.Visible = True If sender.name = "B_FindPrice" Then setprices() createlegs() If Dividends.Value > 0 Then Messages.Text = "Option Prices on Dividend Paying stocks are approximate" Else Messages.Text = "Option Price calculated from IV" End If Else setvolatility() createlegs() If Dividends.Value > 0 Then Messages.Text = "Option Prices on Dividend Paying stocks are approximate" Else Messages.Text = "IV calculated from Option Price" End If End If setvalues() makechart() Messages.ForeColor = Color.DarkGreen Else Chart1.Visible = False setzeros() Messages.ForeColor = Color.Red Messages.Text = "An Expiration date is on or before the Entry date" End If End Sub Private Sub ChangeExp_Click(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles Leg1ExpPrev.Click, Leg1ExpNext.Click, Leg2ExpPrev.Click, Leg2ExpNext.Click, Leg3ExpPrev.Click, Leg3ExpNext.Click, Leg4ExpPrev.Click, Leg4ExpNext.Click Dim direction As Integer = 1 If sender.name.contains("Prev") Then direction = -1 End If Select Case Mid(sender.name, 1, 4) Case "Leg1" Leg1ExpirationDate.Value = changeexpiration(Leg1ExpirationDate.Value, direction) Case "Leg2" Leg2ExpirationDate.Value = changeexpiration(Leg2ExpirationDate.Value, direction) Case "Leg3" Leg3ExpirationDate.Value = changeexpiration(Leg3ExpirationDate.Value, direction) Case "Leg4" Leg4ExpirationDate.Value = changeexpiration(Leg4ExpirationDate.Value, direction) End Select End Sub Private Sub createlegs() leg1 = New EquityOption(Leg1Type.Text, Leg1Contracts.Value, Leg1EntryDate.Value, Leg1StockPrice.Value, Leg1StrikePrice.Value, Leg1ExpirationDate.Value, Leg1OptionPrice.Value, Leg1IV.Value, Leg1Include.Checked, InterestRate.Value, Dividends.Value) leg2 = New EquityOption(Leg2Type.Text, Leg2Contracts.Value, Leg2EntryDate.Value, Leg2StockPrice.Value, Leg2StrikePrice.Value, Leg2ExpirationDate.Value, Leg2OptionPrice.Value, Leg2IV.Value, Leg2Include.Checked, InterestRate.Value, Dividends.Value) leg3 = New EquityOption(Leg3Type.Text, Leg3Contracts.Value, Leg3EntryDate.Value, Leg3StockPrice.Value, Leg3StrikePrice.Value, Leg3ExpirationDate.Value, Leg3OptionPrice.Value, Leg3IV.Value, Leg3Include.Checked, InterestRate.Value, Dividends.Value) leg4 = New EquityOption(Leg4Type.Text, Leg4Contracts.Value, Leg4EntryDate.Value, Leg4StockPrice.Value, Leg4StrikePrice.Value, Leg4ExpirationDate.Value, Leg4OptionPrice.Value, Leg4IV.Value, Leg4Include.Checked, InterestRate.Value, Dividends.Value) leg1check = New EquityOption(Leg1Type.Text, Leg1Contracts.Value, checkdate, checkprice, Leg1StrikePrice.Value, Leg1ExpirationDate.Value, Leg1OptionPrice.Value, Leg1CheckIV.Value, Leg1Include.Checked, InterestRate.Value, Dividends.Value) leg2check = New EquityOption(Leg2Type.Text, Leg2Contracts.Value, checkdate, checkprice, Leg2StrikePrice.Value, Leg2ExpirationDate.Value, Leg2OptionPrice.Value, Leg2CheckIV.Value, Leg2Include.Checked, InterestRate.Value, Dividends.Value) leg3check = New EquityOption(Leg3Type.Text, Leg3Contracts.Value, checkdate, checkprice, Leg3StrikePrice.Value, Leg3ExpirationDate.Value, Leg3OptionPrice.Value, Leg3CheckIV.Value, Leg3Include.Checked, InterestRate.Value, Dividends.Value) leg4check = New EquityOption(Leg4Type.Text, Leg4Contracts.Value, checkdate, checkprice, Leg4StrikePrice.Value, Leg4ExpirationDate.Value, Leg4OptionPrice.Value, Leg4CheckIV.Value, Leg4Include.Checked, InterestRate.Value, Dividends.Value) lastentry = latestincludedentry(leg1.entdate, leg2.entdate, leg3.entdate, leg4.entdate) earlyexp = earliestincludedexpiration(leg1.expdate, leg2.expdate, leg3.expdate, leg4.expdate) leg1exp = New EquityOption(Leg1Type.Text, Leg1Contracts.Value, earlyexp, checkprice, Leg1StrikePrice.Value, Leg1ExpirationDate.Value, Leg1OptionPrice.Value, Leg1CheckIV.Value, Leg1Include.Checked, InterestRate.Value, Dividends.Value) leg2exp = New EquityOption(Leg2Type.Text, Leg2Contracts.Value, earlyexp, checkprice, Leg2StrikePrice.Value, Leg2ExpirationDate.Value, Leg2OptionPrice.Value, Leg2CheckIV.Value, Leg2Include.Checked, InterestRate.Value, Dividends.Value) leg3exp = New EquityOption(Leg3Type.Text, Leg3Contracts.Value, earlyexp, checkprice, Leg3StrikePrice.Value, Leg3ExpirationDate.Value, Leg3OptionPrice.Value, Leg3CheckIV.Value, Leg3Include.Checked, InterestRate.Value, Dividends.Value) leg4exp = New EquityOption(Leg4Type.Text, Leg4Contracts.Value, earlyexp, checkprice, Leg4StrikePrice.Value, Leg4ExpirationDate.Value, Leg4OptionPrice.Value, Leg4CheckIV.Value, Leg4Include.Checked, InterestRate.Value, Dividends.Value) stockleg1 = New EquityShares(StockLegType.Text, StockLegShares.Value, StockLegStockPrice.Value, StockLegInclude.Checked) End Sub Private Sub setupchart() Chart1.Series(0).Enabled = False With Chart1.ChartAreas("ChartArea1") .AxisY.IsStartedFromZero = False .AxisX.Title = "Stock Price" .AxisY.Title = "Position Gain or Loss" .AxisX.TitleFont = New Font("Arial", 12, FontStyle.Bold) .AxisY.TitleFont = New Font("Arial", 12, FontStyle.Bold) End With Chart1.Series.Add("Entry Date") With Chart1.Series("Entry Date") .Color = Color.Blue .ChartType = SeriesChartType.Spline .BorderWidth = 2 End With Chart1.Series.Add("Check Date") With Chart1.Series("Check Date") .Color = Color.Green .ChartType = SeriesChartType.Spline .BorderWidth = 2 End With Chart1.Series.Add("Exp Date") With Chart1.Series("Exp Date") .Color = Color.Red .ChartType = SeriesChartType.Line .BorderWidth = 2 End With Chart1.Series.Add("Minimum") With Chart1.Series("Minimum") .Color = Color.Purple .ChartType = SeriesChartType.Line .BorderDashStyle = ChartDashStyle.Dash .BorderWidth = 1 End With Chart1.Series.Add("Maximum") With Chart1.Series("Maximum") .Color = Color.Blue .ChartType = SeriesChartType.Line .BorderDashStyle = ChartDashStyle.Dash .BorderWidth = 1 End With Chart1.Series.Add("Breakeven1") With Chart1.Series("Breakeven1") .Color = Color.Brown .ChartType = SeriesChartType.Line .BorderDashStyle = ChartDashStyle.Dash .BorderWidth = 2 End With Chart1.Series.Add("Breakeven2") With Chart1.Series("Breakeven2") .Color = Color.Brown .ChartType = SeriesChartType.Line .BorderDashStyle = ChartDashStyle.Dash .BorderWidth = 2 End With End Sub Private Sub makechart() range = 10 startprice = checkprice - (range / 2) startprice = Math.Round(startprice, 0) If startprice < 0 Then startprice = 0 Dim entrytotal, checktotal, exptotal As Single For Each cs As Series In Chart1.Series cs.Points.Clear() Next Chart1.ChartAreas("ChartArea1").AxisX.Minimum = startprice Chart1.ChartAreas("ChartArea1").AxisX.Interval = range / 20 Dim spi As Single If range = 10 Then spi = 0.01 Else spi = 0.05 End If For s As Single = startprice To startprice + range Step spi entrytotal = leg1.vchart(s) + leg2.vchart(s) + leg3.vchart(s) + leg4.vchart(s) + stockleg1.vchart(s) - entrydrcr Chart1.Series("Entry Date").Points.AddXY(s, entrytotal) checktotal = leg1check.vchart(s) + leg2check.vchart(s) + leg3check.vchart(s) + leg4check.vchart(s) + stockleg1.vchart(s) - entrydrcr Chart1.Series("Check Date").Points.AddXY(s, checktotal) exptotal = leg1exp.vchart(s) + leg2exp.vchart(s) + leg3exp.vchart(s) + leg4exp.vchart(s) + stockleg1.vchart(s) - entrydrcr Chart1.Series("Exp Date").Points.AddXY(s, exptotal) Next 'find stock prices for breakevens Dim be1, be2 As Single Dim be1set, be2set As Boolean For s As Single = startprice To startprice + range Step 0.01 If levelcross(s, 0) = True Then be1 = s + 0.01 be1set = True Exit For End If Next For s As Single = startprice + range To startprice Step -0.01 If levelcross(s, 0) = True Then be2 = s - 0.01 be2set = True Exit For End If Next If Math.Abs(be2 - be1) < 0.5 Then be2set = False End If Dim minv As Single = Chart1.Series("Exp Date").Points.FindMinByValue().YValues(0) Dim maxv As Single = Chart1.Series("Exp Date").Points.FindMaxByValue().YValues(0) For s As Single = startprice To startprice + range Step 0.25 Chart1.Series("Minimum").Points.AddXY(Math.Round(s, 2), minv) Chart1.Series("Maximum").Points.AddXY(Math.Round(s, 2), maxv) Next If be1set = True Then Chart1.Series("Breakeven1").Points.AddXY(Math.Round(be1, 2), minv) Chart1.Series("Breakeven1").Points.AddXY(Math.Round(be1, 2), maxv) End If If be2set = True Then Chart1.Series("Breakeven2").Points.AddXY(Math.Round(be2, 2), minv) Chart1.Series("Breakeven2").Points.AddXY(Math.Round(be2, 2), maxv) End If Chart1.Series("Entry Date").LegendText = "Entry Date: " & DateDiff(DateInterval.Day, lastentry.Date, earlyexp.Date) & " days left" Chart1.Series("Check Date").LegendText = "Check Date: " & DateDiff(DateInterval.Day, checkdate.Date, earlyexp.Date) & " days left" Chart1.Series("Exp Date").LegendText = "Expiration: 0 days left" Chart1.Series("Minimum").LegendText = "Minimum = " & FormatCurrency(Math.Round(minv, 0)) Chart1.Series("Maximum").LegendText = "Maximum = " & FormatCurrency(Math.Round(maxv, 0)) If be1set = True Then Chart1.Series("Breakeven1").IsVisibleInLegend = True Chart1.Series("Breakeven1").LegendText = "Breakeven1 = " & FormatCurrency(be1) Else Chart1.Series("Breakeven1").IsVisibleInLegend = False End If If be2set = True Then Chart1.Series("Breakeven2").IsVisibleInLegend = True Chart1.Series("Breakeven2").LegendText = "Breakeven2 = " & FormatCurrency(be2) Else Chart1.Series("Breakeven2").IsVisibleInLegend = False End If End Sub Private Function checkdates() As Boolean Return leg1.expirationafterentry And leg2.expirationafterentry And leg3.expirationafterentry And leg4.expirationafterentry End Function Private Sub resetcheckdate() Dim lastentry As Date = latestincludedentry(leg1.entdate, leg2.entdate, leg3.entdate, leg4.entdate) Dim firstexp As Date = earliestincludedexpiration(leg1.expdate, leg2.expdate, leg3.expdate, leg4.expdate) checkdate = middate(lastentry, firstexp) End Sub Function startupdate() As Date Return changeexpiration(Now.Date, 2) End Function Private Sub setprices() Leg1OptionPrice.Value = leg1.price Leg2OptionPrice.Value = leg2.price Leg3OptionPrice.Value = leg3.price Leg4OptionPrice.Value = leg4.price End Sub Private Sub setvolatility() Leg1IV.Value = leg1.volatility Leg2IV.Value = leg2.volatility Leg3IV.Value = leg3.volatility Leg4IV.Value = leg4.volatility End Sub Private Sub setvalues() Leg1Value.Text = leg1.totalvalue(Leg1OptionPrice.Value) Leg1Value.BackColor = leg1.colorize Leg2Value.Text = leg2.totalvalue(Leg2OptionPrice.Value) Leg2Value.BackColor = leg2.colorize Leg3Value.Text = leg3.totalvalue(Leg3OptionPrice.Value) Leg3Value.BackColor = leg3.colorize Leg4Value.Text = leg4.totalvalue(Leg4OptionPrice.Value) Leg4Value.BackColor = leg4.colorize StockLegValue.Text = stockleg1.totalvalue(StockLegStockPrice.Value) StockLegValue.BackColor = stockleg1.colorize entrydrcr = CSng(Leg1Value.Text) + CSng(Leg2Value.Text) + CSng(Leg3Value.Text) + CSng(Leg4Value.Text) + CSng(StockLegValue.Text) EntryValue.Text = FormatCurrency(entrydrcr) If entrydrcr > 0 Then EntryValue.BackColor = Color.Pink Else EntryValue.BackColor = Color.LightGreen End If End Sub Private Sub setzeros() Leg1Value.Text = FormatCurrency(0) Leg1Value.BackColor = Color.Gray Leg2Value.Text = FormatCurrency(0) Leg2Value.BackColor = Color.Gray Leg3Value.Text = FormatCurrency(0) Leg3Value.BackColor = Color.Gray Leg4Value.Text = FormatCurrency(0) Leg4Value.BackColor = Color.Gray StockLegValue.Text = FormatCurrency(0) StockLegValue.BackColor = Color.Gray EntryValue.Text = FormatCurrency(0) EntryValue.BackColor = Color.Gray End Sub Private Sub contractssame() Dim cv As Integer = Leg1Contracts.Value Leg2Contracts.Value = cv Leg3Contracts.Value = cv Leg4Contracts.Value = cv StockLegShares.Value = cv * 100 End Sub Private Sub entrysame() Dim ev As Date = Leg1EntryDate.Value Leg2EntryDate.Value = ev Leg3EntryDate.Value = ev Leg4EntryDate.Value = ev End Sub Private Sub stocksame() Dim sv As Single = Leg1StockPrice.Value Leg2StockPrice.Value = sv Leg3StockPrice.Value = sv Leg4StockPrice.Value = sv StockLegStockPrice.Value = sv End Sub Private Sub strikesame() Dim sv As Single = Leg1StrikePrice.Value Leg2StrikePrice.Value = sv Leg3StrikePrice.Value = sv Leg4StrikePrice.Value = sv End Sub Private Sub expirationsame() Dim ev As Date = Leg1ExpirationDate.Value Leg2ExpirationDate.Value = ev Leg3ExpirationDate.Value = ev Leg4ExpirationDate.Value = ev End Sub Private Sub ivsame() Dim sv As Single = Leg1IV.Value Leg2IV.Value = sv Leg3IV.Value = sv Leg4IV.Value = sv End Sub Private Sub checkivsame() Dim sv As Single = Leg1CheckIV.Value Leg2CheckIV.Value = sv Leg3CheckIV.Value = sv Leg4CheckIV.Value = sv End Sub Private Sub B_CopyLeg1_Click(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles B_CopyLeg1.Click contractssame() entrysame() stocksame() strikesame() expirationsame() ivsame() checkivsame() End Sub Private Sub Leg1IV_ValueChanged(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles Leg1IV.ValueChanged Leg1CheckIV.Value = Leg1IV.Value End Sub Private Function levelcross(ByVal s As Single, ByVal level As Single) As Boolean Dim s1 As Single = s + 0.01 Dim s2 As Single = s - 0.01 Dim test1 As Single = leg1exp.vchart(s1) + leg2exp.vchart(s1) + leg3exp.vchart(s1) + leg4exp.vchart(s1) + stockleg1.vchart(s1) - entrydrcr Dim test2 As Single = leg1exp.vchart(s2) + leg2exp.vchart(s2) + leg3exp.vchart(s2) + leg4exp.vchart(s2) + stockleg1.vchart(s2) - entrydrcr If test1 > level AndAlso test2 < level Then Return True If test1 < level AndAlso test2 > level Then Return True Return False End Function Private Sub Chart1_Customize(ByVal sender As Object, ByVal e As System.EventArgs) Handles Chart1.Customize For Each cl As CustomLabel In Chart1.ChartAreas(0).AxisY.CustomLabels If CDbl(cl.Text) < 0 Then cl.ForeColor = Color.Red Else cl.ForeColor = Color.Green End If Next End Sub Sub setcheckprice() checkprice = averageincludedstrike(leg1.strikeprc, leg2.strikeprc, leg3.strikeprc, leg4.strikeprc, stockleg1.pchart) End Sub Sub setstartupposition() Dim dt As Date = startupdate() Leg1ExpirationDate.Value = dt expirationsame() Leg1Include.Checked = True checkdate = middate(Now.Date, dt) Leg1Type.SelectedIndex = 0 Leg1StockPrice.Value = 22 Leg1StrikePrice.Value = 22 Leg1IV.Value = 30 Leg1CheckIV.Value = 30 B_CopyLeg1.PerformClick() Leg2Include.Checked = True Leg2Type.SelectedIndex = 2 Leg2StrikePrice.Value = 24 End Sub End Class

 

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