Strategy Analyzer User Guide

Strategy Analyzer User Guide

The Strategy Analyzer is designed to help you determine how the different factors such as strikes, expiration date, volatility etc affect an option strategy. 

It is a great educational tool if you’re looking to deepen your options trading knowledge. 

You can use this application to determine which option combinations best suit your preferred option strategy and trading preference. 

Access to the Strategy Analyzer is reserved only to our OptionEasy and OptionEasy Bootcamp members.


Understanding the Strategy Analyzer

The default setup of the Strategy Analyzer is in “Custom” mode. You will be required to manually add the option legs and key in all the required information to produce a result in this mode. 

To access the “Custom” mode, you can either relaunch the Strategy Analyzer from the Platform or click on the “Customize” button when you have loaded a strategy into the tool. 

The tool is divided into seven main sections: Stock Details, Strategy Legs, Payout Table, Yields, Greeks, Probabilities and Chart Controls.

At the very top of the application, you’ll see a set of instructions to guide you. You’ll also find little white information buttons beside each of the section headers. This contains information of the various fields within the section. 

The top-left corner of the application will display the name of the strategy that is being analyzed. It will display “Custom” if you do not load a valid strategy into the tool. 

There are two ways in which you can utilize this application:

1) Semi-automated way

  • Select your preferred strategy from the Strategy Selector button located at the top of the tool

  • Key in a stock ticker to auto-populate the stock details field

  • Recommended for new options traders or new users

2) Manual way

  • Manually build a strategy by using the “Add Leg” function

  • Manually key in all the required option information 

  • Reserved for the more experienced users and traders


Strategy Analyzer Buttons

   Strategy Selector
  1. You will see this button at the top left section of the application
  2. This icon will launch the strategy selection window where you can filter, search and select your preferred option strategy


   Strategy Guide

  1. You will see this button in the “Strategy Recognition” window that pops up when you click on “Recognize” in the “Custom” mode

  2. This icon will launch the strategy guide associated with that particular strategy


    Analyze Strategy

  1. You will see this button in the “Strategy Recognition” window that pops up when you click on “Recognize” in the “Custom” mode

  2. Clicking on this will auto-populate the “Strategy Legs” section of tool with the associated strategy’s option combination


     At-The-Money Scroller

  1. This button appears under the “Option Strategy Leg” window that pops up when you click on “Select a Leg” under the Strategy Legs section

  2. The “Select a Leg” option will only activate if you key in a valid ticker into the “Stock” field

  3. Clicking on this will automatically direct you to the at-the-money strike options within the list


    Option Info

  1. This icon appears under the “Option Strategy Leg” window which is launched when you click on “Select a Leg” under the Strategy Legs section

  2. The “Select a Leg” option will only activate if you key in a valid ticker into the “Stock” field

  3. Clicking on this launches a separate window that displays all the option information for the selected option leg


How to Use the Strategy Analyzer

Semi-Automated Way

You will fill in the “Stock” field and “Select a Leg” field under this method

Step 1: Click the Strategy Selector button


Step 2: Select your preferred option strategy from the Strategy List 

  • The application will auto-populate the “Strategy Legs” section of tool with the associated strategy’s option combination once you select a strategy from the list


Step 3: Under “Stock Details”, key in your stock ticker

  • The tool will auto-populate all the relevant stock details into their respective fields

  • You may choose to change these information according to your preference

  • We recommend that new traders or users use the default values as a starting point. 


Step 4: Under “Strategy Legs”, select the option legs for the strategy

  • Click on “Select a Leg” under the Leg field

  • Select your preferred expiration date from the Option Strategy Leg table that pops out

  • Click on the “At-The-Money Scroller” button to quickly scroll down the list of options displayed under your selected expiration date.

  • Click on the options ticker to select your preferred option 

    • Strikes highlighted in blue are “in-the-money” while strikes highlighted in red are “out-of-the-money”

    • You can also click on the Option Info icon located beside the options ticker to display information on that particular option leg. To select that particular option, simply click on the “Select” button within the information window.

  • Upon selecting an option leg from the strategy leg table, the tool will auto-populate all the relevant option details into their respective fields 

  • Repeat the same step on the other option legs if you are analyzing a strategy with more than one leg


Step 5: Hit Calculate

  • If you’re analyzing a strategy with more than one leg, the application will produce an error message if you have the wrong strike and expiration date combination

  • The app will not produce any calculated values until you resolve the errors stated in the error message

  • For new users, repeat Step 4 to resolve the errors stated 

  • For advanced users, you can choose to manually edit the respective fields to resolve the errors stated

    • Remember to update the “Premium” value if you are manually editing the “Strike” or “Expiration Date” here


Step 6: View Your Results

  • Upon hitting “Calculate”, the app will produce values under the Payout Table, Greeks, Probabilities and Chart Controls section

  • The Yields section will not display any result if it is not relevant to the strategy being analyzed. For example, a bull put strategy will not produce any “Yield” results here while a covered call will. 

  • The chart section displays the risk profile and the greeks of the strategy being analyzed

    • Change the chart setting by selecting a different “Chart Scale” value under the dropdown

    • Identify the impact of a change in the time to expiration on your risk profile and greek profiles by changing the “Scenario Date” field. 

Manual Way

The “Stock” field and “Select a Leg” field will be blank under this method

Step 1: In “Custom” mode, click “Add Leg” 

  • Build your own option strategy by selecting your preferred combination of stock, call or put options. 


Step 2: Click “Recognize”

  • This will bring up the “Strategy Recognition” window where you can select and load your preferred option strategy 

  • The strategy recognition window will not produce a list of strategies if you have an invalid combination of strategy legs

    • We recommend repeating Step 1 to produce a valid list of strategies here

    • The app will allow you to proceed without a valid strategy here if you’re only interested in the calculated results based on the numbers you input


Step 3: Click the “Analyze Strategy” button 

  • The tool will auto-populate all the relevant option details into their respective fields 

  • You will no longer be able to edit the fields associated with the recognized strategy once it is loaded into the tool (Side and Asset)

  • Simply click on the “Customize” button if you wish to edit these fields. Remember to click on “Recognize” and then “Analyze Strategy” again to load a valid strategy into the app if you do this. 


Step 4: Under “Stock Details”, key in the stock information

  • Key in your preferred stock price and volatility under “Last Price” and “Volatility”

  • The volatility picker field will automatically default to the recommended volatility period of the recognized strategy


Step 5: Under “Strategy Legs”, key in the options information

  • Quantity/Strike Price/Premium

    • The application will produce an error message if you key in a “0” into these fields


Step 6: Hit Calculate

  • If you’re analyzing a strategy with more than one leg, the application will produce an error message if you have the wrong strike and expiration date combination

  • The app will not produce any calculated values until you resolve the errors stated in the error message


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