|
|
|
|
Options Books enable you to systematically organize your options strategies, and monitor profit and loss on a daily and an overall basis.
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 an 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:
|
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 |
|
|
|
|
Option books enable you to manipulate information at the book, strategy, or transaction level to provide different perspectives of your portfolio. You can:
move positions from one strategy to another,
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 an options chart,
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.
©2008 Aspen Research Group, Ltd. All rights reserved. Terms of Use.