Derivative Strategy

The derivative strategy window allows you to combine multiple calls and puts and view the combination outcome in multiple chart formats.

Derivative Strategy Views Toolbar Key:

  = Strategy Assistant
  = Add Strategy
  = Remove Strategy
  = Add Strategy item
  = Remove Strategy item

To set up a derivative strategy...

Step 1: Click on the derivative strategy icon in the toolbar.


Step 2: Type in a stock code in the red field and press enter (Eg. BHP).


Step 3: Click on the add strategy assistant icon in the Current Window Toolbar.


Step 4: Choose a strategy from the window that pops up and click 'Next'. Each strategy will have a different combination of calls/puts. The strategy assistant will only allow you to put in calls/puts that correspond to the chosen strategy.

Step 5: Choose a call/put and click next. Repeat this until you have chosen all of the calls/puts needed to make up the designated strategy.

Step 6: Enter a strategy name and click finish.

Step 7: Swap between charts by clicking the tabs at the bottom of the window.

Comparing multiple strategies in a pay off diagram...

Step 1: Create another strategy (as explained in the 7 steps above).

Step 2: Click the compare P/L tab at the bottom of the window.

Step 3: Tick the boxes next to the strategies you would like to compare.

Creating a strategy manually (with out the assistant)...

Step 1: Click on the add strategy (S+) icon in the window specific toolbar (Views Menu).

Step 2: Type in the new strategy name and click OK.

Step 3: Enter in the desired parameters for the first call/put in the strategy.
Alternatively you could drag and drop an option from your traded options window or the derivative quotes map window.

Step 4: Click on add strategy item (si+) in the current window toolbar (Views Menu) to add more calls/puts to your strategy.

Step 5: Once you've entered in the desired calls/puts for your new strategy it will look similar to this:


Step 6: As well as being able to view the results of your strategies on a profit/loss chart and being able to compare multiple strategies on a simplified profit/loss chart, you can also view  each strategy on a 3D profit/loss chart. On the third axis a 3D profit/loss chart takes time decay into consideration.


Related Topics:
Derivative Quotes Map
Derivative Calculator
Derivative Chart