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Screen 3:  Option Payoffs

This module lets you construct option payoff/profit diagrams for any option position.  Traditional option payoffs diagrams focus on the terminal value of a particular option (plus underlying) position.  A profit diagram plots the terminal payoff net of the cost.  The latter highlights important breakeven points from a trading strategy.  This module automates this traditional analysis for both types of diagrams including the breakeven points.

You can construct payoff (or profit) diagrams using midpoints of the bid/ask (the default), or using the actual bid/ask price.  You can exploit preset strategies - for example, straddles, strangles etc., are automatically computed for you.  Alternatively, you can build up your positions and explore their properties in terms of payoff/profit diagrams.

If you want to mix and match options and the underlying, in order to construct covered positions and their variations, you can enter the appropriate number of the underlying in the text box beside Underlying.  

To learn more about option trading strategies, click on Option Trading Strategy Lessons and scroll down to the lessons section.

The current cost of any strategy is automatically computed for you from the latest option/underlying asset prices.

OS Financial Trading System, PO Box 11356, Pittsburgh, PA 15238 USA, Phone 1-800-967-9897, Fax 1-412-967-5958, Email fts@ftsweb.com,