Skip to main content
Stocks

Percent to Double

Understanding the potential profitability of an options trade is essential for any investor. One way to assess this is by calculating the "percent to double" value. This figure indicates the amount the underlying stock must move for the option to double in value. Typically, we look for a 7%-10% value, but sometimes we are willing to accept less. This calculation is a proprietary one used by Smith Barney and can provide valuable insight into how long we may hold an option. While it does not dictate our decision to buy an option, it is a useful tool in our assessment.

Related terms

Listing Application

Understand the meaning and definition of Listing Application in the context of stock market, trading, and investments.

MORE
Insider Ownership

Understand the meaning and definition of Insider Ownership in the context of stock market, trading, and investments.

MORE
Good til Canceled

Understand the meaning and definition of Good til Canceled in the context of stock market, trading, and investments.

MORE
Profit Margin

Understand the meaning and definition of Profit Margin in the context of stock market, trading, and investments.

MORE
Downtick

Understand the meaning and definition of Downtick in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store