StrategyExplorer is an option spread and stock hedge planning tool supporting up to three-legged option strategies. Twenty strategies are predefined, allowing you to modify the underlying stock price and the options’ strike price and cost, and see immediate results. For simplicity, StrategyExplorer doesn’t capture and therefore ignores the underlying stock’s volatility and dividends, and the time value of money. It assumes that all options expire on the same day. The predefined strategies include:
– Option Spreads – Bullish: synthetic long stock, bull call spread, bull put spread Bearish: synthetic short stock, bear call spread, bear put spread Neutral, low volatility: short straddle, short strangle, butterfly call spread, butterfly put spread Neutral, high volatility: long straddle, long strangle
– Stock Hedging Strategies – Covered: covered call, covered put Protective: protective put, protective call Bracketed: collar, fence Arbitrage: conversion, reversal
