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Screen 4:  Risk Analytics

This module lets you go beyond standard option trading strategies construct option payoff/profit diagrams for any option position.  It lets you perform the same analysis as described in screen three above - with the ability to achieve this over time.  

In addition, this module lets you explore what the distribution of payoffs looks like over time.  This provides answers to the important class of questions regarding the likelihood of profit/loss exceeding $x after 1 week.  To see the distribution for the current position graphically, you will click on Simulate.  

If you want to add some additional options to truncate the downside risk from the distribution, you can do so by changing the position being examined and then clicking on Simulate to see the impact upon the projected distribution of payoffs over time.

Risk Analytics lets you examine the interaction between time and underlying asset price changes upon a position of options and the underlying asset.

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,