left gradient
right gradient
OptiView
PlatformHelp CenterPricingT&C
Back to Help Center
Strategy Builder

What is the OptiView Magic Wand tool?

OptiView's Magic Wand tool searches the option chain for contract combinations that maximize the risk-adjusted expected return. Users define a path along which they expect the underlying to develop, and the optimizer returns the combination of options that yields the highest risk-adjusted return along this path.

How Magic Wand works

  • Draw a price path on the chart to express where you expect the underlying to move — the path sets your subjective view on the direction and range of the stock
  • Magic Wand extracts the market-implied probability distribution from live option prices across the chain, then adjusts it to reflect your drawn expectation
  • Every combination of options up to the selected maximum number of legs is evaluated across the resulting set of price scenarios
  • The combination with the highest risk-adjusted expected return — balancing expected profit against potential tail losses — is returned and added to the strategy builder

Magic Wand settings

  • Trade direction — Debit filters to strategies that cost a net premium upfront, Credit filters to strategies that collect a net premium, and Both considers all combinations regardless of direction
  • Defined-risk — when enabled, only combinations without naked short positions are considered, ensuring every strategy has a capped maximum loss

Plus options

  • Path distribution — controls how the expected return is derived: Range integrates the strategy's expected value over an asymmetric probability distribution, Line computes the expected value on the drawn path only
  • Risk level — sets how aggressively the optimizer weighs expected return against tail risk; Low favors strategies that protect against large losses, High favors strategies that maximize the expected return with less concern for tail outcomes, Moderate balances both
  • Max Legs — sets the maximum number of contracts in the returned combination, from 1 to 4; higher values allow more complex multi-leg strategies

When to use Magic Wand

  • Use Magic Wand when you have a directional or range-bound view and want the option chain to reveal the most efficient way to express it
  • Use Defined-risk on to limit results to spreads and other capped-loss structures when managing downside is a priority
  • Use Credit mode when you want to collect premium and benefit from time decay, or Debit mode when you are willing to pay premium for higher upside potential
  • Adjust Max Legs to control strategy complexity — start with 2 legs for straightforward spreads and increase to 3 or 4 to explore more nuanced multi-leg structures

Related Questions

Strategy Builder
What is the OptiView strategy optimization tool?OptiView's strategy optimization tool* searches the option chain for contract combinations that match user-defined objectives and constraints. Users configure Greek targets such as Delta, Theta, or Vega alongside risk limits, and the optimizer returns a ranked list of candidate strategies. Strategy optimization requires an OptiView Plus subscription.
Strategy Builder
Can I compare options strategies side by side?OptiView allows users to compare up to three options strategies side by side within the options strategy builder. Users can analyze payoff, risk, and position structure across multiple strategies in parallel.
Subscription
What is included in the OptiView Plus plan?OptiView Plus is the paid subscription tier that unlocks features beyond the free plan, including unlimited strategy comparisons, the strategy optimization tool, local volatility surface analysis, and scenario stress testing. OptiView Plus is available at $20 per month or $100 per year.