Building and Evaluating Crypto Options and Futures Portfolios

Summary

This guide explains how to use a position builder to combine crypto options and futures and inspect portfolio profit and loss. Users can choose an underlying currency, add long or short instruments, and view both the payoff at expiration and an estimate of current profit and loss across underlying prices. A time slider projects the current valuation toward expiration, illustrating how it approaches the expiry payoff as time passes, assuming other inputs stay constant.

Positions can be adjusted by changing size, prices, or an option’s implied volatility, and selected positions can be included or excluded from the portfolio view. The guide demonstrates a short call combined with a long future, then a separate short strangle example. It also describes loading actual positions for analysis and comparing them with hypothetical additions; the tool itself does not place trades. Portfolio charts are scenario estimates whose values depend on the entered assumptions and live pricing settings, so they do not guarantee realized outcomes.

Key ideas

• The builder combines option and futures positions to show portfolio level profit and loss.
• Its chart distinguishes estimated current profit and loss from the payoff at expiration.
• A time slider shows how current option valuations may approach expiry payoffs as time decreases.
• Position size, prices, and option implied volatility can be edited to explore alternative scenarios.
• Actual account positions can be loaded for comparison with hypothetical positions, but the tool cannot execute trades.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.