Expected Move Calculator
Traders estimate how much the market might move by adding the ATM call and put premiums together.
How Does This Work?
The ATM (At The Money) options tell us how much movement the market is "expecting".
A simple way to estimate the expected range:
Expected Move = ATM Call Premium + ATM Put Premium
Then the market is expected to stay within:
Current Price ± Expected Move
Calculator
Expected Move
±430
210 + 220 = 430
Lower Bound
23,770
24200 − 430
Upper Bound
24,630
24200 + 430
Expected Range
Green zone = where the market is expected to stay. Red = outside expected range.
Keep in Mind
- •This is an estimate, not a guarantee. The market can move beyond this range.
- •Higher premiums = market expects more movement (usually around events, earnings, etc.)
- •Lower premiums = market expects less movement (calm, sideways market)
- •Option sellers benefit when the market stays within this range.