Option Simulator

An Option Simulator is a powerful trading tool that helps traders predict the price of an option at any specific time and date, whether before expiry or on the expiry day itself. It offers greater precision than traditional tools by allowing you to simulate option pricing dynamically throughout the trading day.

An Option Calculator can estimate the option price for a given day, but it lacks the ability to calculate the price at a specific time during market hours. The Option Simulator, on the other hand, allows traders to simulate option prices at any exact time between 9:15 AM and 3:30 PM, the official trading hours of the Indian stock market. This gives you more flexibility and accuracy when planning trades intraday.

Option prices are influenced by Implied Volatility (IV) and the time remaining until expiry. This tool uses these factors to calculate accurate option values.
To use the Option Simulator, simply input the following:

• Implied Volatility (IV)
• Current stock or index price (e.g., Nifty, Bank Nifty)
• Risk-free interest rate (default: 10%)
• Expiry date and calculation date
• Time of the day you want to simulate
• Option type (Call or Put)

The tool will then provide the option price for the selected time and scenario.

• It helps to predicts option price at any time during the day.
• Helps plan expiry trades.
• Works for Nifty, Bank Nifty, and stocks.
• Can test scenarios before placing trades.

Option prices can change rapidly due to market fluctuations. The Option Simulator helps traders plan their entries and exits more effectively by allowing them to forecast option prices in advance based on anticipated market movements.

For example:
Let’s say Nifty closes at 22,980 today, and you’re considering buying a Nifty 23,000 Call Option for the next trading day, which is the expiry day. However, you’re unsure about the best price and time to enter or exit the trade.

Suppose you expect:

• A gap-up opening of 50 points at 9:30 AM
• A dip to 23,000 between 11 AM to 12 PM
• A recovery and upward move to 23,080 between 1 PM to 2:30 PM

Using the Option Simulator, you can estimate the price of the 23,000 Call Option:

• Between 11 AM and 12 PM, when Nifty is expected to be around 23,000
• At 2 PM, when Nifty is projected to reach 23,080

This gives you an edge by helping you plan your trades strategically and confidently.

Yes, the Option Simulator supports both Call and Put options. Whether you’re planning to buy a Nifty Call Option or a Bank Nifty Put Option, the simulator can help you estimate prices based on Implied Volatility (IV), time of the day, and days to expiry.

The accuracy of the Option Simulator depends on the quality of input data such as Implied Volatility, current stock price, and time to expiry. It uses standard options pricing models to provide highly reliable estimates, making it one of the best tools for options price forecasting.

Absolutely. On expiry day, options prices are highly volatile. The Option Simulator helps traders anticipate price movements throughout the trading session. You can simulate multiple time intervals to decide the best entry and exit points during expiry day trading.

Yes, by simulating different market conditions and time frames, the Option Simulator helps traders test and plan their options strategies more effectively. It’s a valuable resource for backtesting expiry day plays, gap-up/down scenarios, and volatility-based trades.

Yes, this tool works perfectly for Bank Nifty, Nifty, and other major indices or stocks. Simply input the relevant values, and the simulator will estimate the option prices accordingly.

The risk-free interest rate is the theoretical rate of return on an investment with zero risk. In option pricing, it represents the interest you could earn without taking any risk — typically based on short-term government securities like 91-day Treasury Bills or overnight MIBOR.

The risk-free rate is relatively fixed over days or weeks. You don’t need to update it frequently — once per expiry cycle is enough. In contrast, IV changes frequently (every minute) and must be updated regularly.

IV is the market’s expectation of how much the underlying asset (like NIFTY) will move during the life of the option. It’s extracted from option prices, not historical price movement. Higher IV = higher option premiums.

For Indian markets, use the current short-term rate. As of July 2025, we recommend:
10 to 11.0% per annum

You can get real-time IV from:
– Your broker’s option chain or trading platform (e.g., Zerodha, Upstox, Angel One)
– NSE option chain website
– Live charting tools (Sensibull, Opstra, TradingView plugins).

Your option price will differ from the real market value:
– Low interest rate → Underestimates call price
– Wrong IV → Large mismatch (especially for far OTM options)
Use: Interest rate = 10.5% to 11.0% and live IV.

Not necessary. Use a fixed value (like 10.7%) throughout the session. Just update IV as market changes.