Options Trading

How to apply Greeks in market watch ?
Click on reposition column and add the greek column to the market watch.




Fig: Greeks in reposition column ( All the greeks where shown in blue)




Fig: Greeks in market watch



How to use option calculator?
Click on Option Calculator under Tools menu or press Shift+O.
You can get the option greeks value for a particular option contract after mentioning the required information. (User has to give all related information viz. Exchange, Inst name, Symbol, Expiry date, Option type,strike price and type of model).
Press Calculate to calculate the option greeks.



Fig: Option Calculator



How to use Position Analysis ?
Click on Position Analysis under Tools menu or press Shift+Alt+P. It Shows :
     Pay-Off for a given portfolio
     Option Greeks for a given portfolio.
This is especially helpful when the user has a portfolio consisting of several options positions.



Fig: Position Analysis Window



How to invoke various options under Positon Analysis ?
Right click on position analysis window.



Fig :Drop Down list of various options under right click

Implied Volatility :
Once this option has been selected a small window will appear in which Implied Volatility can be seen for the Future and Cash for a selected scrip in Position Analysis window Implied Volatility window can also be invoked using shortcut key F5.
Implied Volatility Graph:
This option provides a real time graph for the selected contract. By default it will show the graph for call as well as put option that keeps on changing on real time basis.
Scenario Analysis :
Using Scenario Analysis option, a user will be able to analyze his/her option positions under different scenarios. User just needs to enter the price band (high and low) along with the intervals, and the Scenario Analysis will automatically calculate the Max Profit, Max Loss, Bep1, and Bep2, for that price band.
View Pay off :
This option allows user check various payoffs at different price range for a selected contract. If user has only one position in the Position Analysis Window, it will show only stock price with possible profit/loss for that position in a given interval whereas if there is more than one option positions present in the Position Analysis Window, it will show the combined pay-offs along with the individual pay-offs for each option contract present in the Position Analysis Window.
View Sensitivity :
This option allows user to check the sensitivity of the selected option contract. User needs to enter the asset price range between which it can be moved. There are three options available to check the sensitivity of an asset. These are :
     a. Date Range
     b. Risk free interest Rate
     c. Volatility
You will get the pay-off for each option and can draw the Pay-off Graph



Fig: Payoff Dialogue and Payoff Graph


Note: Some of these features belong to the automated trading category and require prior approval from the exchange before they can be used.

Download (PDF)

Expand all Collapse all