How do I populate the strategy scanner in Option Strategy Lab?

An options performance graph plots the profit and loss of an options strategy across the possible range of prices of the underlying security. The graph is centered at the current options strike price. The option premium is cash either paid or received for opening the options strategy position. The breakeven point is when the value of the option is equal to the premium paid (not including any applicable fees or commissions). The breakeven is calculated as:…

The profitability of an option strategy is simply the return the investor receives from executing or closing the strategy, minus the options premium price paid or received when the position was opened, plus any fees or commissions paid¹. The value of an option depends on multiple factors including the current market price of the underlying security, strike prices of the options, distance between the strike price and the current underlying market price of the underlying, expected dividends, time until the options expire, and the Implied Volatility, which is the standard estimate of the future volatility of the underlying security’s price over the life of the option…

Option Strategy Lab is a tool within TWS that allows you to enter your price or volatility forecasts for an underlying and it will return a list of single and complex option strategies that will potentially profit based on the forecast entered.

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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…