Analysis Work Page

Last modified 10:59, 5 Nov 2012

Options Analysis

Options trading strategies involve a single option contract, or, more commonly, the combination of many options contracts, with the objective of entering and exiting the market at a profit.

The variety of types of option contracts, the large range of strike prices and expiry dates normally available, and the exponential number of possible combinations, produces the obvious need for a single platform from which all of a trader's strategies and trades, involving all of the options derived from a particular underlying security, can be compared, analyzed and managed.

Your SOFTWARE's Analysis function provides such a platform.

Multiple Strategies

From the Analysis Page, traders can create up to six trading strategies for a single underlying security.

Each of the strategies on the Analysis Page can be as simple, e.g. a single option contract, or complex (i.e. multiple legs) as required.

Comparison on a Common Graph and Summary Table

All of the strategies, or just the ones you select, can be viewed on the same risk graph and compared. Their risk and profitability can also be compared and analyzed on a shared summary table.

Current Market Data

The contents of all data in the Analysis page is kept up to date using the Data-on-Demand functionality.

This allows you to build options strategies and analyze and compare their performance under actual market conditions. In addition, use the Back Test function to see how the strategy has proceeded over its life-time. Strategies can then be saved for further analysis over time or converted to a trade in your portfolio manager.

Advanced Analysis Functions

Your SOFTWARE also recognizes that it is essential for traders to understand the profitability and risk of a strategy in hypothetical situations. For this reason, Your SOFTWARE lets users change the underlying share price or inputs such as volatility models and levels and then view how these changes affect profitability and risk.

Convert to Trades

The Analysis tool is not just for hypothetical analysis and testing, attractive trading strategies can be converted into trades and concurrently managed in Your SOFTWARE's Portfolios feature.

Option Analysis Help Topics

The following help topics have been developed to facilitate your use of this powerful tool:

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