Watch out Option Sellers inflated OTM% - why schawb ?

1. For Calls: TOS calculates how much the stock must rise from its current price to hit the strike. (Denominator = Market Price).

2. For Puts: TOS calculates the distance from the market price down to the strike as a percentage of the strike itself. (Denominator = Strike Price).

I thought I had 40% cushion where in reality it’s only 28%, bad on your part Schwab this must be fixed.

IREN Put shows 40.34% OTM

• Market Price: 40.70

• Strike Price: 29.00

• Standard Manual Calculation: {40.70 - 29.00}{40.70} = 28.75\%}

• TOS Calculation:r40.70 - 29.00}{29.00} = \40.34\%