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
- Go to the Strategy Watchlist
- From your Firstock dashboard, open the Strategy Watchlist.
- Click on Create Strategy
- This will open the option chain of the selected security.
- 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.
- Choose Expiry
- The default expiry is the current series, but you can change it to any future expiry.
- 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
- 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.