Master the options Strategy builder
The Strategy builder is a tool where you can create options spreads (strategies) of any shape you want.
You can add any number of legs (positions) to a strategy. Each leg represents a position. It can be either a call, put, or the underlying symbol. Puts and calls can belong to different expirations (calendar spreads).
CONTENTS:
The handbook view
When you first open the Strategy builder, you'll see the default screen, called the Handbook.
The default underlying symbol is selected, and the simplest options strategy – a long call – is activated. The purpose of this view is to explore standard strategies and use them as a starting point for strategy modelling.
The left part of the screen contains a list of cards — each card is a standard options strategy. The filter above lets you narrow the list to strategies that match your market outlook: bearish, bullish, or neutral.
The right part of the screen displays the options chart – the heart of the Strategy builder. The chart can plot a payoff function (risk profiles), P&L profiles, and greeks profiles.
When you navigate through the list of standard strategies, the builder creates a virtual instance of the selected strategy (using one of the nearest expirations and strikes close to ATM) and renders its risk profile on the chart.
You can modify this virtual strategy using the controls above the chart — change expiration, strike, size, and other parameters.
The chart supports zoom, fullscreen mode, and screenshot sharing.
My strategies – custom strategies modeling
The Strategy builder wasn’t created just for experimenting with standard strategies. Its real power lies in the ability to create fully customized strategies with any number of legs.
To start modelling a custom strategy, click the "Create strategy" button on a card. A dialog will appear asking you to enter a name for the new strategy. You can leave the default value.
Once you close the "Create a copy" dialog, a new strategy is created, and the Strategy builder switches to another view – My strategies. In this view, the left part of the screen no longer shows standard strategies; instead, it lists your custom strategies. In the screenshot below, there's only one strategy — the one we’ve just created.
Adding new position
The first thing you should try is adding new positions to your strategy. Click the "+ New position" button under the positions table. A dialog with a special version of the options chain appears. This chain doesn’t include most of the data available in a regular chain. Instead, it has a Size column, which shows existing positions and lets you add or remove them.
To add a new position, hover your mouse over the desired option — a control with B and S buttons will appear.
Click B to add a long position or S to add a short position. Then adjust the size.
Close the chain dialog by clicking outside of it or on the cross in the top-right corner. You'll now see a third line in the positions table.
Chart
The chart is the heart of the TradingView Options. Its main aim is to visualize how strategy parameters (P&L and Greeks) depend on the price of the underlying asset. The X-axis shows the underlying asset price.
The chart uses a dual Y-axis: payoff and P&L price lines are plotted against the primary (left) Y-axis, while other parameters are plotted against the secondary (right) Y-axis.
Adjusting positions
The positions table of a strategy contains several columns:
- Strike: The strike of the position's symbol, if the symbol is an option. Empty, if it's the underlying
- Type: Either call or put for options
- Expiration: Expiration date of the position's symbol, if applicable
- B/S: Indicates whether a position is long (B) or short (S)
- Price: The price at which the position was opened
- Eye icon: Excludes the position from chart calculations
- Bin icon: Removes the position completely
You can change all parameters — strike, expiration, position direction, etc. — to shape your strategy as needed.
For bulk adjustments (modifying parameters for all legs at once), use the "Adjust" menu.
Clicking an item opens the "Adjust" dialog, which has three tabs:
- Set prices: Assign specific prices to all legs. Prices can be based on the best bid, best ask, mid price, or theoretical price
- Scale: Multiply the size of each position by a specific value. Note that this value can be negative. For example, scaling by -1 inverts the strategy
- Shift: Modify the strike of each position by shifting it left or right on a specified number of strikes
Rename, copy, delete
Use the menu behind the ellipsis button to access the "Rename," "Make a copy," and "Delete" dialogs.
Copying strategies
It is a good approach to test variations of your idea (strategy) by creating a copy of it and then modifying, so the original strategy remains untouched.
To make a copy, open the "Create a copy" dialog by clicking the ellipsis button and selecting the corresponding menu item. Then enter a name for the copy and click Save.
The new strategy appears in your list of strategies and is activated automatically.
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