Master the Options Strategy Finder

The Options Strategy Finder is a tool that helps you find option strategies that best match your view of how the market will price a security in the future.

Suppose you expect Nvidia to surge over the next month, trading at least 10% above its current price. You want to choose an option spread that best expresses this bullish outlook from a range of available strategies.

The Options Strategy Finder can list and rank the spreads that align with your market expectations using a reward-to-risk ratio. This metric represents the expected payoff relative to maximum risk, where maximum risk is estimated as the historical drawdown over the trading horizon for a specific instrument, measured at the 99% confidence level.

The Options Strategy Finder view

Once you open the Options Strategy Finder tab for the first time, a default instrument is selected. You will see a table showing option strategies for the next month, based on an expected price change of +5% to +10%.

Strategies are sorted by their reward-to-risk in descending order (best to worst). You can change the sorting at any time. In addition, you can review the expected payoff (calculated from the payoff function), max risk (1% probability), and other key metrics.

Similar to the Options Chain, you can expand any row to review the metrics in more detail and launch the builder.

Prediction and filters

To find your strategy, you first need to select filters. Two are always required, while others are optional. Using optional filters can narrow the results for greater precision.

The two required parameters:

The underlying instrument’s predicted price range
The time range within which you expect that range to be reached

The strategy types filter allows you to include only your preferred strategies. For example, basic strategies (calls and puts) as well as more sophisticated ones such as iron condors and butterflies.

To limit the distance between strikes in a strategy, adjust the Spread width filter and choose an appropriate width, measured in the number of strikes. This filter applies instantly to all option strategies that use the width parameter.

To filter options used in strategies by moneyness (ATM/OTM/ITM), set the Moneyness filter.

To select only symmetric strikes, activate the Symmetric strikes toggle.

Symmetry applies only to four-leg strategies. A strategy is considered symmetric if the distance (in number of strikes) between edge strikes and their inner neighbours is equal on both sides.

You can apply multiple filters simultaneously or use only the filters that are relevant.