Return On Options Calculator

Calculate Return On Options (ROO)



Formula

The formula to calculate the Return On Options (ROO) is:

\[ \text{ROO} = \left(\frac{\text{OV} - \text{OC}}{\text{OC}}\right) \times 100 \]

Where:

Return On Options Definition

The Return On Options (ROO) is a metric used to measure the profitability of options trading. It is calculated by subtracting the options cost from the current options value, dividing the result by the options cost, and then multiplying by 100 to get the percentage return.

Example Calculation

Let's assume the following values:

Using the formula:

\[ \text{ROO} = \left(\frac{1500 - 1000}{1000}\right) \times 100 = 50\% \]

The Return On Options (ROO) is 50%.