How to Create an Option Strategy in Seconds
Using the Strategy Library
In the previous step, we’ve established that option buying or selling alone is not always the best strategy. Now that you’ve navigated to the Strategy Builder, you’re all set to start trading in sophisticated strategies easily. But there are so many strategies out there, it’s impossible to learn how to make each one, and which strategy is suitable for which condition.
If you are tired of sifting through countless option strategies, trying to figure out which one is right for you, then our Option Strategy Builder is here to help. With our comprehensive list of ready-made strategies in the Strategy Library, you no longer have to spend countless hours researching how to create each strategy, when it is suitable, and how to execute it effectively. These strategies are trusted by traders with decades of experience, and have been curated just for you. Here’s how you can use it to your advantage.
How to use the Strategy Library
Step 1
Login (opens in a new tab) to your Optionlogy account, or sign up (opens in a new tab) if you’re a new user; and go to All Tools > Strategy Builder (opens in a new tab)
Step 2
Select the symbol you want to trade in, and the expiry you’re targeting
Step 3
Go to the Strategy Library
Now you can see a list of ready-made strategies along with a preview of their payoff. You might have heard of or used a few of them before, such as the bull and bear spreads, or iron condor.
Step 4 (optional)
Filter the Strategy Library according to your market view - bullish, bearish, or neutral, and according to your expected volatility in that stock.
Step 5
Select the strategy you want to trade in, and you’ll be able to see all details about it in the Strategy Builder.
In the next module, we will take a deep dive into the strategy builder and how it can be used to analyse your strategy.