Options Wizard

Instructions

The Option Wizard tool serves as a bridge between market analysis and trading execution.

  1. Tap the Trade icon from the tab bar.

  2. Select Options Wizard.

    The options wizard button on the Android Phone

  3. Search and tap on an instrument to open the Option Wizard home page.

    The option wizard search intrument page on the Android Phone

  4. Enter the market forecast by choosing whether the price will increase, decrease, stay within a price range, move either up or down by a certain amount, or whether volatility will rise or fall.

    The options wizard select forecast screen on the Android Phone

  5. The Option Wizard will identify suitable option strategies that align with the forecast you selected. Select Find Strategies.

    The options wizard find strategies button on the Android Phone

  6. The Option Wizard will prompt you for a time range and other forecast specific items.

    The options wizard select date on the Android Phone

  7. Once all forecast criteria has been entered the Option Wizard will generate suitable option strategies that align with the forecast.

    The options wizard forecast criteria on the Android Phone

  8. Use filters to see strategies with specific features

    The options wizard filter on the Android Phone

    You can filter options strategies by:

    • Debit Only: Only shows strategies where the premium price is a debit, meaning the user will pay cash when the order excecutes

    • Credit Only: Only shows strategies where the premium price is a credit, meaning the user will receive cash when the order executes

    • Premium Paid: Only shows strategies where the estimate potential loss value is less than or equal to the premium paid

    • Aggressiveness: Low to High: Shows strategies from lowest to highest aggressiveness. Aggressiveness is a pre-defined categorization of the option or options combo based on the type of option strategy being used, and tries to capture the likelihood of the strategy being in-the-money by expiration and by what percent over the cost (premium) of the strategy.

    • Aggressiveness: High to Low: Shows strategies from highest to lowest aggressiveness.

    • Probability of Profit (POP) (default selection): Lists strategies starting with those that have the highest likelihood of being in-the-money by expiration, down to those with the lowest. The In-The-Money Probability (“ITM Probability”) represents a likelihood of the option or options combination could be in the money within now and when the option will expire. ITM Probability calculation plots the distribution curve of the possible price points of the underlying security within a selected time frame. It factors in your target market price(s), your target volatility, market implied volatility or the implied forward market price when calculating the distribution curve. ITM Probability takes the probability that the price will be better than the break even price.

    • Max Potential Gain: High to Low: Lists strategies from those with the highest potential gains to the those with the lowest.

    • Price: High to Low: Lists strategies from those with the highest price to those with the lowest.

    • Price: Low to High: Lists strategies from those with the lowest price to the those with highest.

  9. Select the strategy you are interested in.

    The options wizard select strategy on the Android Phone

  10. A detailed Performance Profile chart will appear.

    The options wizard chart on the Android Phone

  11. Click the Order button and then slide the bar at the bottom of the screen.

    The options wizard buy order on the Android Phone

 

Additional Resources

Learn About the IBKR Android Interface at IBKR Campus

Learn More About Options Wizard

Visit the IBKR Mobile Website