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.
- Return/Risk Ratio - the ratio of the max potential gain to the max potential loss.
- Probability of Profit - the market implied probability of any gain.
- Maximum Potential Gain
- Maximum Potential Gain as a Percentage of your Investment
- Maximum Potential Loss
- Maximum Potential Loss as a Percentage of your Investment
- Break Even Point - the underlying price(s) required for a strategy to break even.
Hold your mouse over a value in any field to see the definition. Add more fields by clicking the Configure (wrench) icon and then selecting Configure Columns.
More information on Option Strategy Lab can be found in our Users' Guide.