Main Menu > Strategies > Strategy Builder
Last Updated: 9:15 AM 09 APR

person You are not logged in! 😜 Please Login to explore options analysis.

Strategy Builder

What is Strategy Builder?

In the stock market, a Strategy Builder is a tool that helps traders create and customize options trading strategies. It simplifies the process of selecting specific options contracts, strike prices, and expiration dates, aiding traders in making informed decisions for potential profit in the market.

Interpretation of Strategy Builder

TalkOptions brings you an Free of Cost Strategy Builder that helps you to practise your strategies and here you can get loads of In-Built strategies.

Here let's see how it works

On the TalkOptions website, you can see the Strategy Builder tab on the Top Right Side.
When the trader clicks on it, the Strategy Builder page will open On this page, you can able to see the Pay Off Graph on the Right Side.
On the left side, you can see the Strategy details such as how many legs are included, and the profit and loss amount, you can see Live P&L also.
Traders, if you don't have time to build your strategies or you find it difficult to choose the strike prices, then you don't have to worry. We provide Inbuilt strategies where you have to just click on the FAST STRATEGY button on the left side.
Traders if they want to manually create their own strategy then they have to select the INDEX or STOCK from the search button that is given.
Let's say the trader selects the Bank-nifty Index, then the Bank-nifty Spot price will pop up and the nearby futures Price next to the spot price.
Traders can click on the ADD NEW button then Option Chain will come and the trader can choose which strike price he wants to opt it. When he selects his strike prices, he has to click anywhere on the screen, then the Pay-OFF graph will pop up as the trader made the strategy.
Traders can add the lots by clicking on the (+) button and subtract the lots by clicking on the (-) button. Let's say traders mentioned 4 legs in their strategy and traders want to multiply the lots of all 4 legs then we give one button LOT (multiplier). Trader just needs to click on the (+) button, when you click all the legs will multiply.
Traders can change the LTP prices of the legs and view the pay-off Graph After you change the prices, if you want the actual price then traders just need to click on “RESET PRICES”.
Along with this, a trader can see the break-even levels of his selected strategy. A breakeven level means you will earn a profit when your selected INDEX/STOCK crosses that breakeven level.
SAVE STRATEGY button is also given where traders can save their strategy and use it during Market hours. Traders can view their Saved Strategies by clicking on the MY STRATEGIES button.
Traders have the convenience of accessing and managing their strategies by simply clicking on the "MY PORTFOLIO" button, prominently represented as a Suitcase icon located in the top corner.
MAX LOSS and MAX PROFIT also will be shown to the traders. If the strategy works out then the trader knows how much he can earn maximum Unfortunately, if the strategy flops, then the trader would have an idea of how much he can lose maximum.
And LIVE P&L also will be shown during market hours.
Now let's discuss about PAY OFF CHART
In the Payout chart, the Blue area is the profit area and the Red area is the Loss area.When you bring your cursor to the PAY OFF chart, it will show you the EXPIRY DATE profit and today's Profit. Both figures will be different.Expiry date profit will come when your index/stock closes at that particular level.Next to the PAY OFF chart button, you can see the P&L button When trader clicks on it they can check the leg-wise P&L information.
The P&L table consists of the Entry Price of the strike price and the TARGET price of the strike price, LTP, Target P&L and Live P&L There is one slider given for the Underlying Price and another slider is of the Target Date and the ADJUST IV button also.
Let's say if trader assumes that his particular INDEX/STOCK will move 1% upside till the Expiry Date Then trader can slide the Underlying Price to 1% ahead if he expects an upside or he can slide backside 1% if he expects a fall the trader has to slide the TARGET DATE to the expiry day so then he can able to view the Profit and Loss on that day.
Let's say he moved the Underlying Price to 1% above the current levels then the trader can see the TARGET PRICE of the strike price on the above table.
When you slide the TARGET DATE (Expiry date) you can see the different Target Price and Target P&L
Let's say you made a strategy in Nifty You bought Nifty 19500 CE at 50 rupees You sold Nifty 19600 CE at 40 rupees
And trader assumes 1% Nifty will move up then he slides the Underlying Price to 1% ahead, The trader can see the Target Price of the strike price
Nifty 19500 CE price will show now as 150 Nifty 19600 CE price will show now as 135
And in the TARGET P&L, you get the NET Premium In our example, Target P&L would be +100 in Nifty 19500 CE Nifty 19600 CE Target P&L will be -95 (because we sold Nifty 19600CE) In this, we are earning 5 rupees And let's say we bought one lot then our Profit amount will be 5*50 = 250 rupees.
Like this, traders can adjust the IV and check the Target Price and Target P&L of the strike prices.
Like this traders can use the P&L option.
Next to that traders can see the Greeks button also When you click on it, traders can see the IV, Delta, THETA, GAMMA and VEGA Greeks data of the selected strike prices.
Traders can slide the TARGET DATE so they can check the changed Greek data. If traders increase or decrease the IV levels, then also traders can view the changes in the Greeks. So, these features give traders a wide variety of analysis and helps traders to use them for FREE.