What is Option Strategy Lab?

To open the Option Strategy Lab:

• From within Mosaic, use the New Window drop-down and select Option Analysis and then Option Strategy Lab.
• From within Classic TWS, use the Trading Tools menu and select Option Strategy Lab…

When you first open the Option Strategy Lab, the Strategy Scanner opens to allow you to enter your forecast data.

• In the Strategy Scanner, enter the underlying.
• Define your forecast, including: the range, "price" or "volatility" as the forecast driver, the predicted action of the price or volatility ("drop", "rise", "be rangebound" or "move at least"), the increment and the unit ("%" or "points")…

Probability Lab is a tool within TWS that allows you to customize the Probability Distribution based on your price or volatility forecast for the underlying ticker.

You can analyze and trade any of the option combinations suggested from your probability distribution…

Based on your forecast, the Strategy Scanner of Option Strategy Lab returns a list of options or complex option strategies that will potentially be profitable if your forecast is correct. Some fields in the scanner include:

• Expected Profit
• Sharpe Ratio - the measure of excess return (the risk premium) per unit of deviation for the strategy…