Creating standard strategies at optionstrategy.co.in

View which option and futures combination should be used to create standard option strategies

In this blog I am going to explain how we can use the standard strategy feature in optionstrategy.co.in There are many strategies using options based on market  direction scenario. I have added few standard strategies here. They will give you an idea at which strike price and which options we should use to create standard strategy. You can see the pay off graph and decide accordingly whether it would be safe to go with this scenario. 

1. Go to url optionstrategy.co.in and click on Standard Strategies button.

Else if you are on "My Strategy" page, you can view a plus icon at left of "Standard Strategies" Menu

2. Select Index or stock with which you want to view the strategy. Suppose we are selecting Index in this example.
3. Select the script with which you want to view standard strategy. I would suggest to prefer a liquid script only.
4. Change the valuation date. This should be the one on which you want to view how your pay off graph will look like. We need not wait till expiry to see how our payoff graph will look like.

5. Once these parameters are selected, click on plus (+) icon on standard Strategy menu

6. This menu will expand. Click on One of the standard strategy. Lets say we are selecting Bull call spread for now.

7. In the above snapshot you can see it has populated Call with strike prices of 6500 and 6550. Nifty level when this snapshot was taken was 6526. It is suggesting to select one of the call at strike price just below current NIFTY level and another with strike price just above current level. It has populated the options based on end of day strike prices.

8. You can also change the price at which you can buy or sell the option and then click on My strategy button.

You can try with other strategies by clicking on strategy name at left.

You can also change strategy direction by just changing the buy or sell signal. Lets say if you have selected Long Call butterfly strategy.

You can see how its pay off graph will look like.

If you think market is not going to remain range bound and can jump much on either side, you want to go for short call butterfly strategy. Simply change the direction of  buy and sell for the call options.

After changing the buy and sell directions, click on My strategy button above the chart area. Now you can visualize the apy off graph for short call butterfly.

You can also try strategies using stocks by selecting Stock under Index/ stock combobox and select stock of you choice.

You can also add another options/ futures or stocks to add to your standard strategy.

Please mail us at info@optionstrategy.co.in for further queries.

We will be happy to help you.

Creating your own option strategies

Create and Analyze your own Option strategies - How to Use

In this blog I am going to explain how we can use this application to create your own option strategies.  Depending on market condition you can take a call which option to go for.

1. Go to optionstrategy.co.in and click on "My Strategy" button.
2. Under Index/ Stock, select one of the instruments that you want to play with.
3. Then select the script. The example that is demonstrated here is with NIFTY. The strike prices associated with it will be populated under Strike price combobox. 
4. Select the valuation date by clicking on the calendar icon button. This date should be less than or equal to the minimum expiry date that you are planning to use.

5.Now select one of the Option types. If you have selected Index, then you can select one of Call, Put or Futures. If you have selected stock, you have the option of selecting stock also.
6. Once instrument type (Call/ Put/ Futures/ Stocks) is selected, select one of the strike price. To get more reliable results, prefer liquid strike prices. Generally 3-4 strike price above and below spot price is liquid. For stocks, the criteria narrows further.

 

7. Select buy or sell.

8. You can change the expiry date if required

9.  Enter the price that you think you can buy or sell the instrument. Currently the prices are based on End of Day prices. You can also enter the price that you have entered in the strategy earlier.

10.  Select number of lots you want to trade with.

11.  You can select other call or put option, futures or stocks with different parameters in other lines.

 

12. Now click on My strategy button.

13. You can see a chart appearing below showing how the pay off graph will look like.

 

14. You can get an idea around which range your profit or loss will begin. 

You can create your other such strategies depending how you perceive the market. 

You can change valuation date and see how your pay off strategy will look like within short time frame.

Note- The values displayed are for approximation purpose only. they don't show accurate results because of market forces. With change in option moneyness, implied volatility will change and it will affect the option prices.. 

 Mail us your queries/ suggestions at info@optionstratgey.co.in

 We would be happy to help you.

Happy Trading!!!!