Why the method matters
Good research should explain what the strategy is designed to tolerate.
The Framework connects payoff shape, CAR, holding assumptions, market movement, adjustment criteria, and review so Skyline is evaluated as a complete process.
Holdability is not a promise of comfort. It is a design goal: clearer boundaries, fewer ambiguous decisions, and a better chance of following the intended plan.
ILLUSTRATIVE TRADER EXPERIENCE
“The trade was working. The market moved, I exited—and then it came back.”
The Options Engineering question is not simply whether the exit was right or wrong. It is whether the trader had defined the expected movement, risk boundaries, adjustment criteria, and hold-to-expiration assumptions before the pressure arrived.
1
Payoff + CAR
Compare return potential and risk on a consistent capital basis.
2
Lifecycle
Define entry context, monitoring, HTE assumptions, adjustments, and exit.
3
Holdability
Design for clearer risk boundaries and more deliberate decision-making.