Analysis Palette

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Risk Graph Analysis Palette

The floating Analysis palette controls the display of the strategies and their format.

The values selected and entered in the palette concurrently control the display of both data and graphics in the Graphs as well as the Summary worksheets.

Click on the palette button butn_optanlysfloatable.gif on the Graphs or Summary worksheet's function bar to hide / show the floating palette.

You can drag the palette with the mouse to resize it, or to reposition it anywhere on the screen.

Strategy Display Controls

The top of the Analysis palette contains controls related to each strategy.

The maximum number of strategies is 6.

Each strategy is listed using the name from each worksheet's tab. The palette will shrink or grow depending on how many strategies you create or delete.

A color is assigned to each of the strategies; this color is also employed to identify the strategy's data in the table on the Summary worksheet.

Display on Graph

Click on the graph butn_prichart.gif button to hide/show the strategy in the Options Risk graph.

opanlys_graphfloatable.gif

Display Data Summary

Click on the strategy’s name to show its details, and the details of its legs, in the consolidated and individual strategies tables at the bottom of the worksheet.

This will also display the Greeks for the selected strategy, if they are currently displayed.

Color

The strategy's color can be altered to suit each user's preference. Click on the downward pointing arrow to the right of the color box to open a color selection dialog.

Profit Line Controls

The line control settings in the center apply to the strategy selected in the Strategy Display Controls section. In the example, changes to the profit line controls will affect the Bull Spread strategy's profit lines and table.

Hide / Show lines

The check-boxes in the line controls area of the Analysis palette determine the display of the currently selected strategy's profit lines on the Risk Graph in the Graphs worksheet: check to show the line, un-check to hide it.

Select  Days to Expiry

Select the line to insert the days to expiry into the consolidated strategies table at the bottom of the worksheet. As different days to expiry are inserted, the table is recalculated and the results displayed.

If the Greeks are displayed, their values will also change as different days to expiry are inserted.

Change Days to Expiry

Users can insert their own days to expiry settings and apply them to the profit lines, consolidated strategies table and Greeks. The lines will be re-plotted on the graph based on the changed data and the data in the tables will be recalculated.

Analysis Data Entry

In addition to changing the display in the Graph’s page, a number of data alterations can be made directly through the Analysis palette.

Forecast Price

The forecast price is displayed on the graph and is used to calculate data in the tables.

By default the forecast price is the current market price, supplied as price data at the last DoD Refresh.

Users can alter the forecast price to a price which they anticipate the underlying security to be trading at in the future. This will allow the price projections identified in the price chart to be tested against the various strategies, with reference to both the risk graph and in the data tables.

Forecast IV Change

Implied Volatility is calculated by Your SOFTWARE using either of the modeling methods selected by the user.

The level of implied volatility varies over time and affects the value of options and hence the profitability of strategies.

Users can alter the forecast Implied Volatility (IV) in order to compare each strategy's profitability in changed circumstances.

The IV value is altered on a percentage basis. A change in this value will result in the data tables being recalculated based on the new IV.

For example, if you expected the IV of the underlying security to increase 5% in the next month, enter 5 in the text box (or use the spin box to move the amount up or down). Then select the line for that time period using the profit line selector. The effect of this IV change projection will be recalculated and displayed in the table.

Brokerage

Select Entry or End to move the profit level line up or down on the profit scale by the amount set in Strategy tabbed page's Brokerage entry box.

Affects the summary table in particular.

Analysis Date

The Analysis date is the calendar date for the line selected in the days to expiry.

It is calculated by subtracting the number of days to expiry from the expiry date. Note that the days to expiry can be manually changed by the user in the text boxes to the left of the line selectors.

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