Trailing Stop Optimizer

Calculates the optimal trailing stop percentage for short options positions based on bid-ask spread, theta decay, and IV environment — so the trail is never tighter than the noise floor.

Position Details

Strategy Type

Position Bid current bid

Position Ask current ask

Net Daily Theta positive = in your favour

Contracts number of contracts

IV Rank IV rank or IV percentile

Credit Received original credit per contract

Profit Target % at which trail activates

Advanced — Calibration Constants ▼

These constants tune the formula. Increase the bid-ask multiplier if stops still trigger on noise; increase the theta multiplier for more decay runway; adjust the volatility buffer if IV isn't correlating with intraday swings as expected.

Bid-Ask Multiplier default 2

Theta Multiplier default 0.5

Base Volatility Buffer default 15

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Enter position details on the left
to calculate your trailing stop.

What Does This Mean?