Option strategy
Option strategy
1.Option Strategy View
If you place an order to establish an option strategy, the strategy will be displayed in the Option Strategy View.
If several strategies you hold each contain the same kind of leg, the cost prices of these legs will be the same, and the total P/L on them will be distributed among them according to their quantities.
Say you hold a covered call on stock XYZ in your account, and the cost price of and the P/L on this strategy, as well as their details, are as follows:
|
Symbol
|
Quantity
|
Current Price
|
Cost Price
|
P/L
|
|
Covered Call
|
1
|
11
|
8
|
300
|
|
XYZ
|
100
|
14
|
10
|
400
|
|
XYZ CALL 20
|
-1
|
3
|
2
|
-100
|
Then you place a strategy order to establish a vertical spread on stock XYZ (by selling one contract of XYZ CALL 20 at the cost price of $4 and buying one contract of XYZ CALL 16 at the cost price of $4.5), and the cost prices of and the P/Ls on the two strategies, as well as their respective details and relevant changes, are as follows:
|
Symbol
|
Quantity
|
Current Price
|
Cost Price
|
P/L
|
|
Covered Call
|
1
|
10
|
7
|
300
|
|
XYZ
|
100
|
15
|
10
|
500
|
|
XYZ CALL 20
|
-1
|
5
|
3
|
-200
|
|
Vertical Spread
|
1
|
2
|
1.5
|
50
|
|
XYZ CALL 16
|
1
|
7
|
4.5
|
250
|
|
XYZ CALL 20
|
-1
|
5
|
3
|
-200
|
2.How to disable the Option Strategy View
Option positions are displayed in the Option Strategy View by default. To disable it, go to Settings > Trade > Position Display, and turn off Show Option Strategy View.
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.