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Stock Options

Stock Options on Strategy Builder and Simulator​

We are excited to announce the addition of Stock Options to our Strategy Builder and Options Simulator. These powerful features allow traders to create, test, and execute Stock  options strategies with ease. Whether you're backtesting using historical market data or placing long-term positional trades, the Strategy Builder offers a seamless experience across multiple brokers.

Starting with Reliance stock options, you can now access a robust platform for building and optimising your trading strategies.

What Is a Stock Option?​

Stock options (also known as equity options), are financial derivatives that allow traders to speculate on the price movements of an underlying stock without actually owning it.

Using the AlgoTest Strategy Builder for Stock Options Trading​

The Strategy Builder now enables users to efficiently place and manage orders for stock options. This powerful tool offers several key features designed to enhance your trading experience:

  • Monthly Positional Trades: The Strategy Builder empowers you to place long-term trades specifically in both Monthly and Next-month Expiries, allowing you to create and deploy strategies that align with your investment goals. This feature is perfect for traders looking to capitalise on market trends over extended periods, offering greater flexibility and precision in timing your positions.

  • Earnings Trades: Execute trades based on company earnings reports using the Strategy Builder. This functionality helps you capitalise on potential volatility around earnings announcements, allowing for strategic entry and exit points.

  • Broker Support: The Strategy Builder is compatible with over 30 brokers, providing you with a seamless trading experience. This wide integration ensures that you can execute trades through your preferred brokerage platform without hassle.

Current Stock Options List:​

  • RELIANCE (NSE)

  • AXIS BANK (NSE)

  • BAJAJ AUTO NSE

  • BAJAJ FINANCE NSE

  • HCL Technologies NSE

  • HDFC Bank

  • Infosys

  • Polycab India

  • TCS

  • Tech Mahindra Limited

  • UltraTech Cement

How to Trade Stock Options On the Strategy Builder​

This guide will help you use the Strategy Builder to trade stock options effectively. Learn to create trading using AlgoTest strategy builder.

Step 1​

  • Login to AlgoTest.in and click on the Strategy Builder button as shown in the image below.

Step 2​

Click on the Option Chain bar to go to Option Chain.

Step 3​

Use the Underlying Selection dropdown menu to find and choose stock options for your strategy. This dropdown lists available underlying assets, allowing you to quickly navigate through and select the specific stock option you want to trade or analyse.

Step 4​

Choose the stock option you want to trade from the dropdown menu. For instance, you can select the Reliance stock option.

Step 5​

You can now view the option chain for the selected stock option. Additionally, you can choose between the current or upcoming expiry dates from the expiry date bar, as shown in the highlighted section below.

Step 6​

To createy our strategy, go to the Option Chain section, where you can view available options for different underlying assets. Select your desired positions to set up your strategy legs and you can also see strategy's payoff graph and other various parameters

How to Backtest Stock Options on the Simulator​

Utilise the Options Simulator to backtest your strategies before executing them in the market. This feature allows you to analyse historical data and assess the performance of your strategies under various market conditions, helping you make informed decisions. Follow this step-by-step guide to learn How to use backtest Stock Options On the Simulator

Step 1​

To simulate the Stock Options using AlgoTest Simulator visit AlgoTest

Step 2​

Use the Underlying Selection dropdown menu to find and choose stock options for your strategy. This dropdown lists available underlying assets, allowing you to quickly navigate through and select the specific stock option you want to simulate.

Step 3​

Choose the stock option you want to trade from the dropdown menu. For instance, you can select the Reliance stock option.

Step 4​

When setting up a simulation for your strategy, you can select a specific date and time as the starting point. This allows you to replay market conditions from that exact moment, helping you analyse how your strategy would have performed in real-time scenarios. It's useful for testing and refining strategies based on past data.

Step 5​

To simulate your strategy, go to the Option Chain section, where you can view available options for different underlying assets. Select your desired positions to set up your simulation and evaluate your strategy's performance under various market conditions.

Step 6​

You can now simulate your strategy in the simulator using various timeframes. Additionally, you have the option to enable autoplay, allowing you to set a specific duration per second to control the playback speed.