In Option Workshop you can create different option spread templates and apply them to real markets, and add positions.
The strategy template contains the formula for creating a spread. A description of the options in the formula is formed on the template: [number of contracts][instrument type][strike] (see table below). Each option is split up by a comma.Table 1 – Syntax
|Number of contracts||The quantity of options to be bought when the strategy is executed / modelled. To open a short position you need to specify a value with a "minus" mark|
|Instrument type||Instrument type: c – call option, p – put option, u – underlying asset|
|Strike||Indicates the relative position of the strike to the central strike.
The Central strike is a strike that the spread is built up around.
If we build the spread above at a central strike of 100 (with the step distance between the strikes being 5), then:
- 1c, 1p – a straddle;
- 1c+1, 1p-1 – a strangle with a two strike width;
- 1c, -1c+1 – a vertical bull spread.
Templates manager windowTo open the strategy templates manager window, click on the strategy templates icon in the toolbar.
- Name – template name ();
- Template – the formula for creating a spread (). How to write it, see Syntax section;
- control panel ()
- Add – add new template;
- Copy – copy the current template;
- Save – save the changes in the template;
- Delete – delete the template;
- Cancel – cancel the changes in the template.
- Straddle: +1p, +1c,
- Straddle: +1p, +1c,
- Strangle: +1p-1, +1c+1,
- Strangle 2: +1p-2, +1c+2,
- Strangle 3: +1p-3, +1c+3,
- Vertical bull call spread: +1c, -1c+1,
- Vertical bear call spread: -1c, +1c+1,
- Vertical bull put spread: +1p-1, -1p,
- Vertical bear put spread: -1p-1, +1p,
- Calls butterfly: +1c-1, -2c, +1c+1,
- Puts butterfly: +1p-1, -2p, +1p+1,
- Condor: +1p-2, -1p-1, -1c+1, +1c+2.
Creating a template
You can create a template in one of the following ways:
- сlick the Add new strategy template button ()
- click the Add button on the control panel in the selected template
- enter the template name in the Name field;
- write the formula for creating a spread in the Template field (see Syntax section);
- click the Save button.
The Spread desk is used to view all the parameters of a particular option spread with all the different strikes.
To open the spread desk, right-click on the option series code in the instrument tree, and select the Spread desk command.
- Bid – The bid for this spread;
- Ask – The offer for this spread;
- Theor – theoretical price;
- Delta, Gamma, Vega, Theta – the greeks.
There are the following buttons on the toolbar:
- The code of the underlying asset and the option series. The option series can be changed.
- The selected template. You can select the template from the drop-down list. When you select a template, the information in the table will be updated.
- the number of strikes in the table displayed around the ‘at the money’ strike: 10, 25, 50 or all strikes.
- Buy – place orders on all instruments in the template (see Placing orders for a whole strategy)
- Sell – place orders on all instruments in the strategy (see Placing orders for a whole strategy)
- Generate positions – create positions from the template (see Creating positions from the template in the Spread desk)
- Instruments – the command list for the each instrument in the option spread:
Creating positions from the template in the Spread desk
The most convenient and quickest method is by dragging a row from the Spread desk, and dropping it into the positions table.
Table 2 – Creating positions from the template
|Account||Account (real or virtual), in which the strategy will be added. You need to select it from the dropdown list|
|Strategy name||Strategy name. You can select it from the drop down list or enter a new name|
|Multiplier||A value at which the quantity of options in the template will be scaled. Examples:
|Price sourсe||Positions opening price source:|
|Information about positions||A mini summary of each option contract that is to be traded|
Creating positions from the template in the Option desk
You can create a strategy from a template in the Option desk. The figure below shows how to open this form.