Options Strategy

Purpose

Construct and analyze options positions with an accurate view of what is actually being risked. Options positions frequently have a risk profile very different from the one the buyer had in mind, and the difference shows up at expiration.

When to Use

• Constructing an options position to express a view.
• Analyzing the risk of an existing position.
• Deciding whether implied volatility makes an option cheap or expensive.
• Managing a position into expiration or assignment.

Capabilities