> For the complete documentation index, see [llms.txt](https://guide.traderevolution.com/project/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.traderevolution.com/project/desktop-application-for-windows/windows/trading-panels/option-master/overview.md).
# 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:**
Clicking on the button
calls the dialog window Option master – settings. This block allows specifying general settings of the Option master panel. General settings tab is divided into three sections: General, Analyzer and Volatility lab.
**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:
In-the-money color – allows selecting 'In the money' color.
Out-the-money-color – allows selecting 'Out the money' color.
If coloring method is Historical volatility, the following options can be selected: Current HV, % – shows current level of the historical volatility for the underlier (Min = 0, Max = 1000, Step = 0.1). Pressing the button
allows to reset custom value of the historical volatility to the calculated value from the symbol chart by the selected price type (described below).
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.
ATM strike color, Std. color, 2\* Std. color – standard setting for color selection.
**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:
Coloring method – allows selecting coloring scheme for Analyzer tab: Historical volatility or None. Current HV, % – shows current level of the historical volatility for the underlier (Min = 0, Max = 1000, Step = 0.1). Pressing the button
allows to reset custom value of the historical volatility to the calculated value from the symbol chart by the selected price type (described below).
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:
* 1. Domestic rate, % – value by default = 0; step = 0.01.
2. 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.
**Info panel:** click on the button
to enable/disable the information panel displaying.
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.