Multiple-Group Strategies
Multiple group strategies enable you to analyze calendar spreads and other
strategies involving different underlying instruments. A group can have only one
underlying instrument; therefore, to create a strategy using options with
different underlying instruments, you must create multiple groups. Because you can
have only one underlying price series on the X axis, you need to define the
relationship between the different underlying instruments. For every point along
the X axis that represents a price for one underlying, we must derive the price
for the every other underlying instrument.
The Spread Type field enables you to define the relationship between different
underlying instruments. In a multiple group strategy, the underlying used to
establish the X axis scale is called the master. There can be only one master underlying instrument in a strategy. All
other underlying instruments are, therefore, slaves. The Spread Type field
identifies the method used to calculate the value of the slave at each point on the X
axis, which is the master underlying price series. Selecting the Spread Type
field displays the
Spread Type menu.