Options payoff & strategy builder¶
The Payoff module (the Payoff item in the sidebar) is a visual builder for multi-leg options strategies. You assemble a strategy from option legs, see its payoff-at-expiry diagram update live, save it as a preset, and backtest it — all without writing code.
The page title reads Options Strategy Builder when you're creating a new strategy, or Edit Strategy when you open a saved one. An Equity / F&O toggle at the top switches between this F&O builder and the equity Strategy Builder.
Building a strategy¶
1. Pick the underlying and expiry¶
- Underlying — start typing and choose an F&O underlying (e.g. NIFTY, BANKNIFTY) from the dropdown.
- Expiry — pick an expiry for that underlying.
Once both are set, the current Spot price and the instrument's lot size are shown, and the option chain loads.
2. Add legs¶
There are two ways to add legs (up to 10):
- From the option chain — the chain shows CALLS | Strike | PUTS with each side's LTP and open interest. On any strike, click B (buy) or S (sell) on the call (CE) or put (PE) side to add that leg. The at-the-money row is highlighted.
- From a template — pick a ready-made structure (see Templates) and it seeds the legs for you.
3. Adjust the legs¶
The Strategy Legs table lets you fine-tune each leg:
| Column | What it does |
|---|---|
| Action | BUY or SELL |
| Strike | the chosen strike |
| Type | CE (call) or PE (put) |
| OTM % | signed % away from spot — editing it re-snaps the strike to the nearest step and refreshes the premium |
| Qty | number of lots (1–1000) |
| Premium | the leg's price (from the chain) |
OTM % is the parameter that's actually saved, so a strategy stays meaningful across price levels — when you backtest, strikes are re-resolved from the % rather than frozen at today's absolute strike. Clear All empties the legs.
The payoff diagram¶
The diagram updates automatically on every change. It plots profit / loss at expiry against the spot price:
- A bold Combined line for the whole strategy, plus a dashed line per leg.
- The profit zone shaded green and the loss zone shaded red, with a vertical Spot marker.
- Breakeven points marked on the zero line and listed as chips.
- Summary chips: Max Profit, Max Loss, Net Premium, and a BE: chip per breakeven (in ₹).
You can export the diagram as SVG, PNG, or CSV (the CSV has the combined and per-leg P&L across the spot range).
No Greeks (yet)
The payoff view shows max profit, max loss, net premium, and breakevens. Per-leg Greeks (delta/gamma/theta/vega) and implied volatility aren't displayed in this module.
Templates¶
Choosing a template seeds its legs (defined as % from ATM) and resolves them to real strikes and premiums using the current spot:
| Template | Structure |
|---|---|
| Iron Condor | sell CE +2.5% / buy CE +4% / sell PE −2.5% / buy PE −4% |
| Short Straddle | sell ATM CE + ATM PE |
| Short Strangle | sell CE +2% / sell PE −2% |
| Long Strangle | buy CE +2% / buy PE −2% |
| Bull Call Spread | buy ATM CE / sell CE +2.5% |
| Bear Put Spread | buy ATM PE / sell PE −2.5% |
| Covered Call | sell CE +2% (against long stock) |
| Calendar Spread | sell near-month ATM CE / buy far-month ATM CE |
| Custom | start from scratch |
Saving & managing presets¶
- Give the strategy a name and click Save Preset (or Update when editing). Save is enabled once you have a name, an underlying, and at least one leg.
- Saved strategies live on the Options Strategy Presets page (the My Presets link). There you can Edit, Backtest, Clone, or Delete each one.
Backtesting a strategy¶
Click ▶ Run Backtest (enabled once the preset is saved). Set the start / end dates (default: last year) and initial capital, then run. Backtests execute at daily granularity on historical data and open on the Dashboard when done.
Optional entry / exit rules (in the collapsible rules card) tune the backtest:
- ADX threshold (max) — only enter when trend strength is below this.
- Trade every N days — how often to re-enter.
- Hold for (days) — how long to hold before exit.
Wave 1 limitations
- RSI filters and P&L-based exits (profit target / stop loss / max loss) are planned but not yet honored by the backtest.
- Custom (arbitrary-leg) strategies currently backtest through the Iron Condor engine; the full arbitrary-leg engine ships in a later wave. The defined templates backtest as expected.
Data & requirements¶
You don't need a connected broker to use the builder — the option chain, expiries, spot price, and payoff computation all come from JanusLab's own backend. The chain shows LTP and open interest; backtests run on daily historical data.