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How to Automate Bot Decisions Using Option Greeks

If you reference the option greeks, you can use decision recipes to automate bot actions for existing positions and potential trade opportunities.
Kirk Du Plessis
Oct 19, 2021

Do you use options Greeks when trading? Do you wish you could but find it difficult to understand and quantify the Greek’s values?

The Greeks measure an option's sensitivity to external factors. Their values are dynamic and fluctuate as price and information change, so tracking them in a live trading environment can be difficult. But they are a valuable tool that many traders like to use when trading options.

One of the cool features of bots is the ability to reference properties --such as delta, gamma, theta, and vega-- when automating decisions for existing positions and potential trade opportunities. 

For example, you can use this decision recipe inside a monitor automation to check if an open position is challenged heading into expiration week. The recipe allows you to evaluate the short option’s delta value every time the automation runs. You can take specific action to exit or adjust the position If the short leg’s delta is above or below a defined value.

You can even group and nest decisions to check multiple Greek values and options legs, which is helpful for multi-leg positions such as iron condors.

You can also use the Greeks to identify trading opportunities in a scanner automation.

The bot can scan for option leg opportunities to open a new position. Maybe you only want to trade short options with a specific theta, for example. 

There are multiple attributes you can evaluate in a decision recipe, so you are always in control of your bot’s actions. The Greeks may be especially useful to your strategy, and now bots can automatically check their ever-changing values throughout the trading day.

Do you use options Greeks when trading? Do you wish you could but find it difficult to understand and quantify the Greek’s values?

The Greeks measure an option's sensitivity to external factors. Their values are dynamic and fluctuate as price and information change, so tracking them in a live trading environment can be difficult. But they are a valuable tool that many traders like to use when trading options.

One of the cool features of bots is the ability to reference properties --such as delta, gamma, theta, and vega-- when automating decisions for existing positions and potential trade opportunities. 

For example, you can use this decision recipe inside a monitor automation to check if an open position is challenged heading into expiration week. The recipe allows you to evaluate the short option’s delta value every time the automation runs. You can take specific action to exit or adjust the position If the short leg’s delta is above or below a defined value.

You can even group and nest decisions to check multiple Greek values and options legs, which is helpful for multi-leg positions such as iron condors.

You can also use the Greeks to identify trading opportunities in a scanner automation.

The bot can scan for option leg opportunities to open a new position. Maybe you only want to trade short options with a specific theta, for example. 

There are multiple attributes you can evaluate in a decision recipe, so you are always in control of your bot’s actions. The Greeks may be especially useful to your strategy, and now bots can automatically check their ever-changing values throughout the trading day.

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