Logic of Contract Selection (Nearest, Above, Below)

The selection options Nearest, Above, and Below determine how OptionsApp interprets the desired target value of a search criterion (e.g., Premium, Delta, Percentage, or Offset) and which contract it selects. This allows you to precisely control whether the target value should be hit as accurately as possible or whether you want to systematically search above or below the target value.

1. Position in the Trade Template

The price approximation setting is located in the Trade Template at the Leg level and can only be applied to independent Legs (with their own search criteria).
For each Leg, you can individually define search criteria (e.g., Premium or Delta). Directly within these search criteria, you can use Nearest, Above, or Below to specify how the target value is interpreted and which contract is selected.

The selection always applies per Leg and only affects the contract search procedure of that specific Leg.

2. How It Works

For all search criteria, a target value is defined, for example a target premium of $1.00 or a Delta of 30. When opening, OptionsApp searches for the matching contract in the option chain. By selecting Nearest, Above, or Below, you specify how the search is oriented relative to this target value:

• Nearest: Selects the contract closest to the target value, regardless of whether it is above or below it.
• Above: Selects the nearest contract whose value is at least as large as the target value. The approximation approaches the target value from above.
• Below: Selects the nearest contract whose value is at most as small as the target value. The approximation approaches the target value from below.

3. Application Examples