The formula to calculate the Return On Options (ROO) is:
\[ \text{ROO} = \left(\frac{\text{OV} - \text{OC}}{\text{OC}}\right) \times 100 \]
Where:
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.
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%.
