How to Use the Strategy Builder in Firstock?

The Strategy Builder in Firstock allows traders to design, test, and execute custom multi-leg options strategies. It gives you all the tools to analyze potential payoffs, risks, and probabilities before placing the trade.

🔹 Step-by-Step Guide to Using the Strategy Builder

1. Go to the Strategy Watchlist
   • From your Firstock dashboard, open the Strategy Watchlist.
2. Click on Create Strategy
   • This will open the option chain of the selected security.
3. View Strike Prices
   • By default, you’ll see 5 strikes (1 ATM, 2 OTM, 2 ITM).
   • Expand to 10, 20, or 30 strikes depending on your requirement.
4. Choose Expiry
   • The default expiry is the current series, but you can change it to any future expiry.
5. Build a Multi-Leg Strategy
   • Add Calls and Puts at different strikes and expiries to construct your desired strategy.
   • The Strategy Builder will instantly display key insights such as:
     • Payoff Chart
     • Maximum Profit & Maximum Loss
     • Breakeven Point
     • Risk–Reward Ratio
     • Probability of Profit (POP)
     • Option Greeks (Delta, Theta, Gamma, Vega)
     • Time Value & Intrinsic Value
     • Margin Required
6. Use the What-If Analysis Tool
   • Change underlying price: See how the payoff shifts with different spot price scenarios.
   • Change target date: Adjust the number of days to expiry and observe the impact of time decay (Theta) on the payoff.

Why Use the Strategy Builder?

• Visualization: Payoff charts make strategies easy to understand.
• Risk Management: See your exact maximum profit, maximum loss, and breakevens before executing.
• Flexibility: Test different scenarios with What-If analysis.
• Advanced Metrics: Option Greeks and POP give you deeper insight into probabilities and sensitivities.