Using the Options Analyzer on etrade.com

E*TRADE Securities1

06/29/18

Using the E*TRADE Options Analyzer

Learn how to use the E*TRADE Options Analyzer tool. With Options Analyzer, you can perform a “what-if” analysis of options positions and strategies across different time frames, and calculate the probabilities of various outcomes before you enter an order or for an existing position you already hold. 

  1. Once you’ve logged on to your E*TRADE account, hover over the “Research” tab and select “Options” from the dropdown choices.
  2. Click “Options Analyzer” on the “Options Tools” tab to launch. 
  3. Enter the symbol of the underlying for the option you would like to trade, or select a specific symbol from one of your accounts using the dropdown menu and the symbol box at the top of the tool.
  4. In the “My Positions” section, select the positions you would like included in the analysis. You can select up to four legs to analyze at a time.
  5. To build a strategy:

  6. Navigate to the “My Strategies” section, where you can build up to three new strategies.
  7. Enter individual legs one at a time by clicking “Add an Option Leg” or “Add a Stock Leg,” or select one of the pre-populated strategies from the dropdown menu.
  8. Click “Analyze.”
  9. The analysis is divided into two sections: “My Profit/Loss Graph” and “Expected Probability.”
    • “My Profit/Loss Graph” displays:
      • How much money your strategy could make, or lose, at any given price for the underlying stock
      • One, two, and three standard deviation moves in the stock price, both up and down
  10. To analyze the strategies and calculate the probabilities:

  11. Adjust the vertical green slider for movement in the stock’s price.
  12. View the calculated profit and loss probabilities in the “Expected Probability” section.
    • To further customize the analysis, add an additional slider in the “Expected Probability” section. 
    • Modify the date or volatility assumption in the “Customize Graph” section
  13. To trade your strategy, click the “Trade” button to populate an options order ticket with the strategy you built.

By using the E*TRADE Options Analyzer tool, you can dissect your custom-built options strategies or pre-built standard options strategies to create an order ticket, allowing you to take control of how you trade options.