Input area of the option strategy calculator
The current and expected market data are defined in the input area. The current values are displayed, but you can vary them. The market expectation is entered relative to the current values. Before starting, pay particular attention to the information on Fee and margin calculation.
Current:
| Field | Description |
|---|---|
Date | Date of the current prices, also the purchase date of the strategy. This cannot be in the future, but can be placed in the past. It is important that courses are available in the database on this date. |
Basic course | Price of the underlying on the purchase date. |
Volatility | Volatility of the underlying on the purchase date. The historical volatility 250 is shown here. |
Secure interest rate | Current interest rate for safe short-term investments in this currency. You configure these via the SECURE INTEREST command in the menu of the "Further configurations" icon on the "Configuration" tab. Please also read the section Configure secure interest rates. |
Expectation:
Define your market expectation here.
| Field | Description |
|---|---|
In ... Days | Time to which the expectation refers, as duration in calendar days. This is of course limited by the term of the options used. This date is also to be seen as a sell or close-out date. |
Basic course +/- | Expected percentage price gain or loss of the underlying asset on the sale date. |
Volatility +/- | Expected increase (decrease) in volatility. |
Interest +/- | Expected interest rate change. |
To scroll up and down in individual steps using the small arrow buttons, hold down the <CTRL> key while clicking on the arrow.
Use <CTRL>+<P>, the "Print" icon or the FILE, PRINT command to send the current display of the option strategy calculator to your printer.
To recalculate the data, select the "Re-evaluate" icon.
Further parameters:
| Field | Description |
|---|---|
Investment | Enter your intended investment volume (including margin) here. The Infront Portfolio Manager needs this value to calculate the number of contracts that can be bought for a strategy. The number of contracts is also included in all fee calculations. |
Including expenses | Select here whether the key figures and diagrams are calculated including expenses. |
Expenses/margin regulations | Enter the fee rates that apply to your bank. Select the "Properties" icon to change the settings or to create and save a new model. |
Once you have defined the above parameters, you can take one of two paths:
- You allow the computer to evaluate a large number of combinations and filter out unsuitable ones (optimization).
- You manually construct a warrant combination.
