StrategyExplorer
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The StrategyExplorer is a planning tool for connstucting profitable option strategies.
Twelve option spreads and eight stock hedges (incl. two arbitrage strategies) are predefined, so you only
need to modify quantities and prices to see meaningful results. The StrategyExplorer supports any combination
of long and short positions consisting of as many as three options and their underlying stock, so dozens of
additional strategies can be planned and reviewed visually, including ratio spreads.
The StrategyExplorer can be used as a sort of poor man's HedgeExplorer (one of the tools in NillaHedge) with the following caveats. StrategyExplorer assumes that all options expire on the same date while the HedgeExplorer accommodates calendar spreads (combinations of options that do not expire on the same date). Additionally, HedgeExplorer plots are based on Black-Scholes value while StrategyExplorer plots are based on intrinsic value, thus deliberately ignoring the portion of option value derived from the underlying stock's volatility, dividends, and the time value of money. The StrategyExplorer restores its state from the last time you ran it, so you'll never lose your place. Refer to the documentation page for additional details on the predefined spreads and hedges. |
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