In the Portfolio page, for any of the instruments in the portfolio the Solver function lets you calculate what single strike will give you a defined market price for the entire portfolio.
It is important to note that in the Portfolio page the solver calculates the single strike that can be used for all of the selected instruments. So if you select three instruments, the system calculates the same strike that can be used for all three of them. Moreover, if you have manually defined the strike for some of the instruments in the portfolio, the system takes these strikes into account as they are. That is, it only calculates the strike for the instruments you request.
To use the Solver to work out the strike for one or more instruments that will give a specified total market premium for the portfolio:
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1.
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In the Portfolio page enter the instruments that make up your portfolio, or access an existing portfolio. |
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2.
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Click the Solver button. The field that can be solved for appears underlined. Also when you hover over it with the mouse, the pointer changes to a hand icon and the field name changes to blue. |
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3.
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Click the heading box of each instrument for which you want to calculate the strike. |
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4.
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Click the Strike field. The Strike textbox for each selected instrument turns pink. |
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5.
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Click the bid or the ask textboxes of the Market Price result. |
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6.
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In one of the textboxes that appear enter the required bid or ask result. |
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7.
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Click Calculate. The required strike is calculated by SDX Commodities & Energy. |