The options strategies ticket allows you to simultaneously trade multiple options from the same ticket. All option legs are delivered as one order and executed as one.
The strategies ticket is available for both listed options and FX options.
The listed options strategies ticket
The Strategies ticket allows traders to simultaneously buy and/or sell different options from the same ticket. All option legs are delivered as one order and executed as one. Benefits of option strategies include reduced margin requirement and limited market risk through spread trading.
The option strategies ticket currently supports these markets: US stock and index options, and Euronext stock and index options.
How can I access the option strategies ticket?
The Option Strategies ticket is accessible from multiple places in SaxoTrader and SaxoTrader desktop.
From the option chain:
- Click Strategies to launch the module
- Or right-click on a bid or ask of an option and click Option Strategies.
Alternatively, you can right-click on the instrument from the search bar, watchlist, screener, positions module, or orders module and select Option Strategies.
Using listed options strategies
Launch the module and select the account and strategy or manually add a leg. Hit the Buy / Sell button, once you are satisfied with the chosen criteria. Confirm the order.
The system recognizes a strategy if you build it manually, unmatched strategies are recognized as custom.
Pending orders are visible in the Orders module and can also be modified or cancelled. Please visit our web page to read more about Listed options trading conditions.
Viewing and closing an option strategy from the Position module
If you wish to enable the options strategy feature in the Positions module and learn how to close an options strategy from the Positions module, please navigate to the following article: How can I enable the listed Options strategy in the positons module?
The FX option strategies ticket
The FX Option Strategies ticket allows you to trade simultaneously up to 10 FX vanilla options from the same ticket. The ticket supports all pairs available for FX options. All option legs are executed in one go.
What are the benefits of the FX option strategies ticket?
- Tighter spread than trading legs separately. This will materialize for strategies mixing buy(s) and sell(s) (where Vega netting applies).
- More convenient and controlled execution than trading legs separately
- Delta Exchange capability available and enabling further spread reduction (trade at mid-spot)
- The risk graph provides a visual representation of the pay-off profile at expiry
How can I access the option strategies ticket?
You can access the FX option strategies ticket in multiple ways:
1. Right-click on an FX instrument from the search, watchlist, screener, positions, orders...
2. Click Strategies when you view an FX option in the option chain
How to use the FX option strategies ticket?
- Launch the module, select the account and capture the legs details. The ticket supports from 1 to 10 legs.
- Bid/Ask are available at the leg level and will reflect the spread netting. They are shown in pips for enhanced readability.
- The strategy price is available in the trade button in monetary terms and will be tradable if the trade button has a green square (some dealability criteria apply on notional or delta). Only the right side, corresponding to the direction of the legs as specified, is tradable. The other side is also shown on the left side for transparency purposes. You can, of course, trade the other side by simply flipping all the legs’ directions in one go by clicking on ‘Buy/Sell’.
- Spot Delta exchange allows you to trade simultaneously the option leg(s) as well as the spot position making your strategy Delta neutral. The trade button will reflect the spot position that will be executed at the same time as the options legs. When trading delta exchange, the spot is done at Mid-rate which also constitutes to a tighter spread.
N.B. If the Delta amount is below the minimum spot trade size, no spot position will be executed.
- Bid, Ask, Mid Volatility, Delta (currency 1), Delta %, Gamma (currency 1), Vega (currency 2), Theta (currency 2), premium in monetary term (for the direction specified), Mid forward and expiry value date columns are available and can be customized by simply doing a right click on the header.
- The risk graph provides a visual representation of the Profit and Loss of the strategy at expiry.
How to close an FX option strategy?
Once traded, a strategy will be booked as individual option positions with no link between them.
Closing legs separately could involve margin impact and it is therefore recommended to close a strategy by booking a new strategy in the opposite direction.
It can be achieved by:
- Opening the Strategy ticket from an existing position.
- Using the first leg, matching the selected position where the ticket was launched from, as a baseline to rebuild the strategy to close.