Option strategy: build a position from option legs

Option strategy builds a crypto options position from one or more legs. It draws the position's profit and loss at every price of the underlying, gives the break-evens, the maximum profit and loss and the greeks, and shows on which venue each leg is cheapest. It is a Pro Lab tool, part of the Pro and Elite plans.

Building a position

1. On a computer, press Pro Lab on the right-hand toolbar; on a phone, open the analysis centre from the chart's bottom bar and choose Pro Lab. Then choose Option strategy.
2. Choose the underlying, such as BTC or ETH, and the expiry.
3. Pick a ready strategy, such as a long call, a bull call spread, a straddle or an iron condor, in the Strategy menu: its legs are laid out at once. Or add legs one by one with Add a leg.
4. For each leg choose buy or sell, call or put, the strike and the quantity. The best price and the implied volatility appear next to it.

Reading the results

• Net premium is what the position costs or brings in. Max profit and max loss are exact, and read Unlimited when a side has no ceiling.
• The chart draws profit and loss at expiry and at a date you choose (today or half way), and Volatility moves every leg's volatility 10 points up or down.
• The greeks are for the whole position now: delta, gamma, theta per day and vega per volatility point.
• Where each leg is cheapest compares the total on every venue with the best price of each leg: a leg you buy is priced at the lowest ask, a leg you sell at the highest bid.

Good to know

• The break-even alert button sets price alerts at up to 3 break-evens on the coin's spot pair; with more, set them from the chart.
• Quantities are in units of the underlying: 1 means one BTC on a BTC option. Contract sizes and fees differ between venues and are not included.
• Before expiry each leg is valued with the Black-76 model at its venue's implied volatility; where a venue shows no bid or ask, its mark price is used and marked.