Payoff graph on Sensibull is not reliable?

[trader_arjun]

@Sensibull seeking clarity on payoff graph accuracy. Since you use a Black-76 variant with, how much can we trust the ‘Expected Profit’ figures? Do you have data on the percentage of failure or the reliability rate of these projections? Looking for a concrete statistical answer on how often this data proves incorrect because many traders use your platform and trust you so we expect a transparency.

[BB789]

I think expiry profit/loss projections will be accurate. But before that, iv plays a major role. IV changes will reduce/increase your profit/loss significantly.

[Sensibull]

@trader_arjun

seeking clarity on payoff graph accuracy. Since you use a Black-76 variant with, how much can we trust the ‘Expected Profit’ figures? Do you have data on the percentage of failure or the reliability rate of these projections? Looking for a concrete statistical answer on how often this data proves incorrect because many traders use your platform and trust you so we expect a transparency.

It all depends on IV input, Arjun. If the IVs you assume are correct, the values and projections will match. But if the IVs are way off, they wont.