Build Customised Option Trading Strategies with Strategy Builder | Motilal Oswal
Build Customised Option Trading Strategies with Strategy Builder | Motilal Oswal

Build Customised Option Trading Strategies with Strategy Builder

If you’re interested in trading in options, it’s important to have the right options trading strategy in place. For beginners, and often even for experts, it can become difficult to keep track of which strategy to use when. Furthermore, it can be even harder to design and develop customised an options trading strategy when you need one.

Fortunately, with the options strategy builder from Motilal Oswal, you can do this easily. If you’re looking for a strategy builder that is easy to use and that lets you build customised strategies, take a look at what we offer. You can use our options strategy builder online, from the comfort of your own device - be it a laptop, a mobile phone or a desktop.

What is the strategy builder?

The options strategy builder is a utility developed by Motilal Oswal Financial Services Limited. We developed this tool with the aim of making option strategy execution easier and better for our clients.

With this tool, you enjoy advantages like better price discovery and seamless execution of your options trading strategy. The tool also allows you to predefine trading parameters, so you don’t need to constantly monitor the markets. Thus, the tool also helps you reduce the associated opportunity cost.

What strategies does this tool support?

With the strategy builder, you can create and execute the following options trading strategies.

1. Bear put spread

2. Bull call spread

3. Straddle

4. Strangle

5. Butterfly spared

6. Iron butterfly

7. Iron condor

8. Long condor

In addition to this, you can also build your own custom options trading strategy.

Can I build custom strategies with the strategy builder?

Yes, of course. With the options strategy builder, you can create 2, 3 or 4 legged strategies easily. That’s not all. You can even create strategies using a combination of both futures and options.

Here’s a quick walkthrough of how you can build customised options trading strategies with our strategy builder utility:

1. You need to select the instrument and the scrip from the ‘Instrument’ and ‘Symbol code bar’ respectively.

2. Then, you need to select the number of legs for your trade.

3. With this done, the order form will be activated.

4. You can then create strategies based on your preference, with a combination of both futures and options contracts.

5. Once you’ve defined the contracts that you wish to trade, you need to define the ratio in which you want to trade the strategy legs. The ‘Lot Multiplier (Ratio)’ field is relevant here.

6. After you’ve defined the ratio, the strategy builder computes the order lots to be traded according to your inputs, and it executes the same when the spread matches.

And while you’re at it, here’s a quick point to remember. You cannot add the same scrip in different legs of the trade. For example, if you have selected ‘Nifty Futures April Expiry’ in the first leg of the trade, you cannot select the same asset in the other next legs.

Conclusion

All in all, the strategy builder is very user friendly and easy to get the hang of. The benefits it offers far outweigh the initial effort you put in to understand the process of building custom strategies. So, if you want to streamline your options trading process, you know what to do.

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