How to use Opstra Options Strategy Builder?

Short Answer

Opstra Definedge is a platform that provides many tools and features to Derivative traders. Both Options as well as Future traders can make use of this platform. Some of the primary tools of Opstra are the Strategy Builder, IV (Implied Volatility) chart, Options Backtesting, Options Simulator, and many more. The Options Strategy Builder is one of the most intensively used tools on the platform.

Detailed Answer

What is Opstra strategy Builder?

Opstra Definedge is an online platform that provides many tools that are required for Options trading. Some of these include OI (Open Interest), Options backtesting, Option Simulator, Event calendars, etc.

How to use Opstra Strategy Builder?

Opstra is a versatile platform that offers many features. A beginner trader, as well as an advanced trader, can find useful tools in Opstra according to their needs. Let's see how to use Opstra’s Strategy Builder-

Options Strategy Builder

Opstra is mainly used to build options trading strategies. To build a strategy in Opstra the following steps can be followed-

  1. Open Opstra Definedge, and click on the Portfolio tab on the top left hand of the platform. From there click on “Strategy Builder”. That will take you to the strategy builder part, where you can make your own strategies on any underlying. The landing page of the Strategy builder is shown below.

opstra strategy builder...jpg

As seen above, The top part is to select the underlying Index or stocks, on which you want to build a Strategy. Let's take “Nifty” as an example. Some important price points such as Spot price, Futures Price, IV (Implied Volatility), IV Percentile of that particular asset will be displayed for any reference.

  1. Once you have decided to build a strategy, you need to select Options or Futures in which you want your strategy. If you want an option strategy then select “Options” from the “Select Segment”. After choosing the type, select the Expiry on which you want to implement your strategy. There are weekly as well as monthly expiries listed. Therefore you can use any expiry option according to your strategy.
  1. After choosing the Expiry, select the strike price on which you want to select for your strategy. There are 3 types of Strike prices-, OTM (Out of the Money), ATM (At The Money), ITM (In the Money). Chose any of them accordingly.
  1. The next step involves selecting the type of Option that you want to execute. It can be a Call option or a Put option. Therefore choose the Call or Put option in the “Option Type”
  1. After you have completed selecting the strike price and the type (Call or Put), now you have to choose whether it's an Option Buying strategy, an Option Selling strategy, or a strategy that involves both(combination of buying and selling). After determining the type of the strategy, select “Buy” or “Sell” as. Post this step select the desired quantity and click on "Add Position" to complete the process.

For example, if you want to set up a Long Strangle, you will have to Buy 2 OTM options (Call & Put) of the same expiry of the same underlying asset. As this involves 2 Option contracts, you will have to add one option and repeat the same process twice to add the other Option contract. After completing the process, you will be able to monitor the profit & Loss, Payoff Graph, Option Greeks, etc.

Conclusion

To conclude it can be said that building Option Strategies on Opstra is very easy. Even a beginner can create their own strategies and test them on Opstra. The Strategy Builder is also icluded on the Free plan which is free to use. This makes it even more appealing for Options traders.

Tagged With: Opstra DefinegdeOption TradingOption StrategiesLong StrangleDerivative trading
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Discussion (2)

    Opstra Definegde is a platform which offers various tools which makes it easier for the traders to understand and analyze the charts and tables. It is very simple and straight process to build a strategy. It is also available for the free users making feasible for its customers.

    Creating a strategy on Opstra strategy builder is quite a straightforward process. However, do try to tweak it here and there to maintain its integrity over time. Also, do figure out the type of plan you pick up to get the most of what it has to offer.

Related FAQs

Is Opstra Options Analytics good strategy builder?

Opstra Options Strategy builder is a platform for Options and Futures traders. It provides many tools for trading derivatives, Some of these include Options Simulator, Options backtesting, IV (Implied Volatility) Chart, Option Chain analysis, and much more. Both beginners, as well as advanced traders, can use this platform as it offers all the necessary features for both these groups.

Which strategies should a Options Buyer use to make money?

Option Buying is more common when compared to options selling. This is because option buying requires less capital and the maximum profit is uncapped. This lures many small retail traders who ultimately lose money when it comes to options buying for various reasons. Follow these strategies to increase your chances of generating profits.

What is the Best strategy for Options Trading?

There are many complex Option Trading strategies out there but the most profitable are some of the simpler ones. The top 3 of them are Long & Short Straddles, Long & Short Strangles and Bull/Bear spreads.

Can you trade options using Investing.com?

Investing.com is a great platform for traders as it provides many technical and charting tools that are beneficial for traders as well as technical analysts. As Investing. com is not a stockbroker, hence you cannot place trades directly from the application or website. In order to place a trade, you need to have a trading account with a stockbroker.

What is a Collar option Strategy? When to use it?

A collar option strategy is a multi-leg option strategy that involves an existing long position in any security in the Equity or Futures market and buying an OTM (Out Of the Money) Put option and selling an OTM Call option in order to hedge the existing long position from any short term bearishness. The overall Profit and loss are capped in this strategy and this strategy is implemented when the overall outlook of the underlying asset is bearish.

Is Opstra options Analytics platform or app free?

Opstra Definedge is an Options analytics platform that provides various tools and screeners to find out the most effective strategies and implement them. Opstra is an excellent platform for beginners as well as advanced options traders who want to build new Option trading strategies and backtest them. Opstra provides many features such as Options Backtesting, Options Simulator, IV chart, OI (Open Interest), and much more.

Which is the simplest options strategy for beginners?

Options trading can be done in diverse ways. You can trade Options in unhedged or Naked positions as well as use multi-leg strategies to limit the losses. An endless combination of options can be used to put together a strategy. This can get complex sometimes. But many simple Option strategies can be used by Beginners. More of such strategies are discussed here.

Is Quantsapp Options Analytics platform free to use?

Quantsapp is an online Options analytics platform that provides many tools and features to option traders. It is free to use, but not completely. There are two price models that it offers at present. Both of them provide access to different features and tools. This gives an individual to choose anyone according to their preferences.

Which is the best time frame for Options Trading?

Options Trading is a risky business and options traders have to look at various parameters before taking a trade. Choosing a time frame is one of the factors in options traders. Both option Buyer and Sellers use different time frames to trade. Let's see which time frame is most useful for options buying as well as selling.

What is Open Interest in Options Trading in Stock markets? Examples

Open Interest is a parameter used by technical analysts and options traders to judge the mood of the market. Open Interest is the total number of outstanding option contracts in a particular strike price of an underlying asset. The OI is an important factor as it defines liquidity and the total number of contracts that are traded at a particular point in time.