Opening a Risk Graph

In EduTrader to open a Risk Graph click on File - New - Risk Graph or use the Main Toolbar shown below.

 

 

 

To watch a demo on how to use the Risk Graph, click the Play button below:

 

 

The Risk Graph is a detail oriented screen that shows a graphical view of the profit or loss of an option at different prices.  It is best used by first opening the Spread Select, finding the spread that you want to view, then double click on the spread sending it to a Risk Graph.  By doing this it will open a Risk Graph for you and automatically enter the spread information into the Risk Graph.  The Risk Graph also has the flexibility to be manually adjusted.

 

To the right of the symbol you will see following displayed: Last, Estimate Net Spread Volatility, 20 Day Historical Volatility (HV), 60 Day Historical Volatility (HV), 90 Day Historical Volatility (HV), Continuous Implied Volatility Calls, and Continuous Implied Volatility Puts.

 

 

Showing a Chart within the Risk Graph

While viewing the Risk Graph if you would like to view a Chart based off of the current symbol click on the button .  To Hide the Chart and just click on Hide Chart button.

 

 

The Chart inside of the Risk Graph can be manipulated in many of the ways that a normal Chart can. This means that the Drawing Tools and other Tool Bar buttons can be used as normal for manipulation of the Chart. However, only select studies can be applied to the Risk Graph chart due to spacing issues.  These Studies that can be added to the chart are the Bollinger Bands, Moving Average, Parabolic SAR, and Pivots as shown below.

 

 

 Using this option on the Risk Graph, enables the Risk Graph to be taken out of the main program window. It then can be moved and resized anywhere on the screen. When the Page is saved the window(s) that are outside of the main program will be saved in those locations as well.

 

 This is what will be shown when a window is currently being 'Floated' outside of the main program window.  To return the window 'Floating' outside of the main window click on the Dock button.

   

 

   

Clicking this option will drop down the color link window and link the current window with a specific Risk Graph window that is using the same colored link.

 

 

 

The Risk Graph can be linked to the Spread Select as well the Risk Graph can be manually adjusted to fit the Investor's strategy.  Below are the locations on the Risk Graph that can be edited.

 

 

The Historic Volatility can be changed in the following ways. By clicking on the boxes near the top of the risk graph labeled 5 Day HV, 20 Day HV, 60 Day HV, 90 Day HV, Continuous IV Calls, or Continuous IV Puts. Also near the bottom of the Risk Graph is another column labeled "HV". The Historic Volatility can be manually changed by changing these values.

 

Another feature of the Risk Graph is being able to select the available spreads through the Spread Template Drop Down. This menu can be found in the upper right hand corner underneath the Dock and Spread link options.

 

 

The top highlighted section in the above graphic shows where the selected Spread information from either a Spread Select or a manually loaded Spread Template will be displayed.  Here the Position, Quantity, Price, Expiration Month, Strike Price, and C/P (Call/Put) can be manipulated in this area. By manipulating any of the previously mentioned values it may change the Symbol, Implied Volatility, Delta, Gamma, Risk, Profit, and Cost shown to the right of the highlighted box.

 

At the bottom of the Risk Graph in the highlighted section Color, Days, and Historic Volatility (HV) can be edited for the selected Spread or more lines can be added to the Risk Graph for further analysis.