Fundamentals
Create New Strategy with your option software |
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In this video we will learn how to create new long straddle strategy.
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| Click on the 'New' button on the left upper end to load the strategy wizard. Click on the tabs to select a predefined strategy group, bullish, bearish, neutral or Sharpe move. Select a specific strategy on the list below. Each click, the option software will show you below the p&l graph at expiration. After picking the right strategy, type into the 'Symbol' text box the required symbol. Click blow to pick how many strikes around the 'At The Money strikes' you want to deal with. Then click 'Load' to load the strategy infrastructure. On the lower left side in the cell below the 'Expiration' title you will choose the expiration dates that relates to your strategy outlook, then choose the strikes. The option software will not let you choose other legs that are not related to the original option strategy you have chosen in the first place. It won't let you either to change the amounts nore their sighns(positive or negative) if they are not aligning with the general guidelines of the specified option strategy. After entering the required parameters, above you will see the P&L graphs, the red one is showing the current status of the strategy, the green one shows P&L graph at expiration. On the lower right corner click 'Next' to save strategy to the main risk analysis simulator the main window of the option trading software. Click 'Next' to save it to the current portfolio then click next. Click 'OK' then enter a unique name for your strategy. on the top left side you will see your saved strategy for further analysis and modifications if necessary. |
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