The max profit and max loss illustrated in all of the above options trading strategies are expiry basis, which needs to be taken into account by option traders. The option trading strategy, usually is for a few days. Quantsapp enables option traders to formulate strategies on basis of expiry and also informs them about the possible payoff at different days prior to the expiry day. This enables traders to follow a data-driven, informed approach, through India’s leading option strategy builder tool, Quantsapp.
The approach to establishing an option trading strategy is rooted in the forecast of the underlying by the trader, using the optimal options strikes which could be most favourable in terms of risk to reward. But when one is trading in options (after having formulated a view of the underlying), the stop loss and targets are to be followed with discipline in options, looking at the respective levels of puts or calls or both, depending on the kind of strategy deployed.
The exit strategy would be determined by the stop loss defined while evaluating the strategy using Quantsapp option architect tool. This should be taken as your stop loss or absolute loss. While there isn’t a need to keep tracking the options position like a hawk, but remain informed about it via the Alerts feature of Quantsapp.
Alerts can be created options leg-wise in Quantsapp for each option leg; for above or below the trigger price, an alert is sent via Telegram or Quantsapp notification. Another manner in which alerts can be created is Strategy alert where the MTM of the options strategy can be the trigger point or the trailing profit level can also be used to trigger strategy alert. These alerts are disseminated via Telegram or Quantsapp notification.