Option Books
An options book enables you to organize your options trading techniques.
Options strategies often involve vast numbers of transactions. Initiating many
options transactions enables an options trader to achieve and maintain the
risk/reward characteristics he or she desires in an overall, or aggregate, position.
Within this framework, an options trader has a variety of strategic choices.
Trading options is often so complex that when you develop a successful options
strategy, the trades you use to create the strategy are often difficult to
remember, much less duplicate. Options books provide you with a means of monitoring
trading techniques and applying successful approaches over and over.
An options book organizes strategies and positions. Strategies consist of one
or more positions. A position is a transaction in which you buy, sell, or
write an option, or buy or sell and underlying instrument (future, stock, or any
other instrument on which options are traded). In other words, an option book
is a hierarchy of these one-to-many relationships:
|
| OPTION BOOK
|
|
| STRATEGY 1
| STRATEGY 2
| STRATEGY 3
|
| Buy 10 USU110 Calls
Buy 10 USU110 Puts Buy 1 USU6 | Buy 300 AU900 Calls
Buy 500 AU910 Calls Buy 200 AU915 Calls Sell 500 AU950 Puts Buy 50 AU960 Calls Sell 135 AU960 Puts Sell 148 AU960 Puts Buy 200 AU5 | Buy 200 DMU710 Calls
Sell 100 DMU720 Calls Sell 200 DMU730 Calls Buy 345 DMZ700 Puts Buy 257 DMZ720 Puts Buy 25 DMZ5 |
move a strategy from one book to another,
aggregate a book into a strategy, and
aggregate all books into a single book.
Once you create a book, you can display the information it contains in quote windows (that are designed to display options) and option chart windows. You can:
display a position in a quote window,
display a strategy in an options chart,
display a strategy in a quote window, and
display a book in an options chart.
Topics:
The Option Books Menu
Defining a Book
Sorting Strategies
Dragging and Dropping
Using Option Book Names