# Overview

The Option master panel shows detailed information about options, allows to analyze it and then to trade with selected option contracts.

To open a new Option master panel go to Terminal - > Option master.

**Level 1 symbol data:**

Level 1 data information of the symbol that underlies the option contract was gathered in this block. This block can be easily customized through the Context menu.

**Account and symbol lookups:**

Here user can select an instrument that underlies the option which user is going to analyze; and also account for trading from Accounts lookup.

**Settings:**

**General:**

The section General has the following options:

Pricing model – shows a price model, which will be used for calculation (currently Black-Sholes model is only available).

Interest rate, % – allows selecting interest rate.

IV calculation price – allows selecting price for IV value calculation from the drop-down list. The following values are available here: Ask, Bid, (Ask + Bid)/2 and Last.

Show toolbar – allows showing toolbar.

**Option chain:**

Strikes aggregation style – allows selecting style of strikes count from the drop-down list. There are two available styles:

From ATM strike – strikes are counted from the ATM strike, this is the default style of strikes aggregation;

Custom underlier price – allows choosing custom underlier price.

Coloring method – allows selecting coloring scheme for Option chain tab: Classic or Historical volatility.

If coloring method is Classic, the following options can be selected:

**Coloring logic**

ATM strike color – it is a strike or 2 strikes, which are more closely located to the Last price of the underlier.

Std.1 = Price * (1-HV/SQRT(365)*SQRT(T);

Std.2 = Price * (1+HV/SQRT(365)*SQRT(T)), where T is quantity of days remaining before the contract expiration.

All strikes inclusively, which fall within the range from Std.1 to Std.2, should be painted in the Std. color.

2Std.1 = Price * (1-2*(HV/SQRT(365)*SQRT(T));

2Std.2 = Price * (1+2*(HV/SQRT(365)*SQRT(T))), where T is quantity of days remaining before the contract expiration.

All strikes inclusively, which fall within the range from 2Std.1 to 2Std.2, should be painted in the 2*Std. color. Coloring of Std.color

occurs over 2*Std.coloring.

**Analyzer:**

This tab allows specifying colors and style for displaying the main lines of the option position profile:

Intrinsic – color, shape and thickness of the option intrinsic value line;

Time line - color, shape and thickness of the option time line;

Zero line - color, shape and thickness of the zero line;

Underlier price – color, shape and thickness of the line that indicates the underlier price.

Probability simulations:

Simulation model – available states: By absolute prices (default value), By relative prices and By logarithmic prices.

Simulation examples – (Min = 100, Step =1, Default value = 1000, Digits = 0).

Probability scenario – available values: One touch (default value) and Out of range.

History Period, year – allows selecting a history period.

View:

Price – allows specifying the underlier price from which sought values Std. and 2*Std. will be plotted. The following prices are available here: Last, (Bid + Ask)/2, OHLC/4 and OHL/3.

Standard deviation color, 2 Standard deviation color – standard setting for color selection.

**Volatility lab:**

The section Volatility lab allows to set up parameters of the Volatility lab tab of the Option master panel.

This section contains the following options:

Basis – allows selecting Strike prices or Delta from the drop-down list.

Vanna-Volga model:

Underlier price – allows selecting Forward price or Current last price from the drop-down list. In case the Forward price is selected, the following options are enabled for editing:

Domestic rate, % – value by default = 0; step = 0.01.

Foreign rate, % – value by default = 0; step = 0.01.

The following options also can be set up:

ATM strike price – at the money option's strike price;

ATM IV, % – at the money option's implied volatility;

Call strike price – some call option's strike price;

Call IV, % – implied volatility of selected call option;

Put strike price – some put option's strike price;

Put IV, % – implied volatility of selected put option.

**Info Window:**

Visibility:

Info Window Mode – allows selecting Separate Window, Attached to Cursor or Hidden from the drop-down list.

Activate short mode – allows activating short mode.

View:

The following options can be activated: Intrinsic P/L, P/L, Delta, Gamma, Vega, Theta, Rho, What if.

Colors:

The style of a font can be selected.

**Positions/Orders information:** this block shows all information about positions, orders and 'test on paper' results.

**Panel navigation:** use this block in order to manage tabs of Option master panel.

This panel consists of 3 logical blocks:

Current portfolio – displays total margin requirement by portfolio of actually existing positions.

Portfolio + Analyzed paper positions – displays margin requirement changing in the case of adding "paper" positions to the portfolio.

Portfolio greeks – shows total "greeks" value by current portfolio.

Greeks – are the coefficients which used for the characteristics of option cost (premium) sensitivity to the changing of various values: Delta, Gamma, Vega and Theta.

Delta – is the first derivative of the option price by the underlier price; shows how option price will be changed in points, if the underlier price changes by 1 point.

Gamma – is the second derivative of the option price by the underlier price; shows the rapidity of the option delta change.

Vega – is the first derivative of the option price by volatility; shows how option price will be changed in points, if the volatility changes by 1%.

Theta – is the first derivative of the option price by time; shows how the option price will be reduced after one day.

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