Using the custom option strategy builder free, you can build your own options trading strategies and check the potential payoff of each strategy. This helps you select the most profitable contracts and implement the most successful strategy.
In this article, we will cover the benefits of using custom strategies for option trading and how this amazing feature can make your journey more efficient.
How Custom Strategies Help in Options Trading?
You can create and execute options trading strategies for underlying stocks, indices, commodities, and currencies using an option strategy builder. It is more helpful when you can access this tool without any additional cost. For this, you can select Dhan, the best options trading platform, where you can create strategies and execute them as well for free.
Coming back to our topic, here are some of the features or benefits that custom strategy functionality provides:
1. Specific Trading Objectives
You can make use of different contracts and create an option strategy for specific objectives. Firstly, you need to analyze the market outlook (bearish or bullish), choose from calls and puts, and finally select the strike price.
For example, you can use the Nifty Strategy Builder for trading in Nifty options contracts. You can continuously analyze the created strategy and adjust it accordingly to the market view.
2. Strategy Comparison
You can create your custom strategies based on market outlooks and save them. You can use them later which helps in saving time and effort.
You can also compare each strategy’s potential profitability and loss along with their Greeks such as delta, gamma, theta, and vega. This helps you analyze contracts on different charts such as line, candlestick, Heikin-Ashi, Renko Charts, etc.
3. Study P&L Table
You can analyze the profit and loss of each contract using the current price, set target price, and adjusted implied volatility. You can see the estimated profit and loss for the specific calls and puts and also for the overall strategy.
Another feature that you can use to analyze the profit and loss of options trading strategy is the Payoff Simulation feature. You can see the maximum profit or loss, risk-reward ratio, and break even point for each strategy on a real-time basis.
4. Live Payoff Graphs
You can analyze the real-time payoff graphs for every strategy that you create. Using a feature like multi-strike OI (open interest), you can also analyze selected option contracts for different price levels.
The price of the underlying contract such as Nifty 50 and the open interest can be compared in a charting form. You can compare the call, put, and underlying asset on the range of different expiry dates.
Conclusion
Custom Strategy Builder tool helps you to create unique options trading strategies as per your analysis and you can even execute them on the same platform. You can use it for specific goals, save it for later use, and compare different strategies. You can study the P&L of the strategies in both the table and chart format. To use a customer strategy builder without any cost, open an account with Dhan.
