Option Strategy

The Strategy screen not only allows you to analyse the probability of a price forecast, but also evaluates various options strategies based on your risk and reward preferences. To access this screen, you need to click on the Strategies tab available on the left navigation pane of the FNO section.

The Strategy screen consists of the following:

Probability Chart - It shows the forecast of future price by taking the implied volatility (IV) as an input to log normal distribution and plotted over time. The current IV is taken as default. However, users can define their own IV or select from the dropdown if they feel the IV may fall or rise going ahead. The price forecast reflects the user’s view of the IV. The plot then shows the probabilities of the stock price achieving those prices on that particular date.

Strategy Input - This gives you the option to select the target price and date for your strategy.

Priorities - This allows you to prioritize personal risk preferences based on Profit, Safety, Probability and Return. You can move the field bars up or down based on your preference. Based on a user's strategy input and priorities, our system generates up to 5 options strategies taking the real-time values of puts and calls. You can also view risk/reward for each strategy.