Introduction to the Hedge Submenu
The Hedge menu is designed to help the user calculate positions within the selected expiration chain to be directionally neutral. It is worth reviewing reference material, such as Wikipedia or Investopedia, before using this feature set.
Enter the submenu after choosing the desired expiration date by using the command,
hedge, from the Options menu.
How to use the Hedge Submenu
The first step is to pick the underlying position for the calculation. Scroll the list populated by autocomplete, or type in the choice.
The strike prices for puts and calls are shown with the
list command. Use this table to add or remove options from the calculation.
Add the first option with the corresponding index number for the strike price, attaching flags for a put and for short,
rmv command removes added options. With an underlying position and two positions added,
sop will display the results based on the inputs provided.
plot will display an options payoff chart, using the provided values.
Substituting Option A for a different trade.
Substuting Option B from the same example above.
Moving Option B down one strike.
Back to: Introduction To Options