Recent content by Flynrider

idk but seems a $2.5 stock would be cash secured requirement so you would be force liquidated (unless some other action taken by you). I’d guess a forced liquidation would occur much sooner than your broker eats a $40K loss, iow you will be liquidated much before the stock reaches $5.

I’ve not looked at it a lot but I think they only track the PnL of a series of option rolls/adjustments. They don’t then apply any of this PnL to assigned share cost basis. However, they are the one I know of that does track PnL of multiple “rolls”.

Tastyworks has a “Chains” feature that tracks net effect of rolls.

What risks are unhedgeable?

‘Those are both the same strategy (iow non-leveraged long delta with a theta&Vega hedge).

Goal: Net + PnL Strategy: Use delta and/or theta and/or Vega to achieve goal. Tactics: indicators (ticker trends, IV, HV, etcc), strikes/expiry’s (e.g. delta, theta,Vega chosen), Management plans, capital allocation. Requirement: Market accommodation to your strategy and tactics. IMHO

“2% loss” guideline refers to amount of risk per trade. "Amount of risk” is a function of structure (e.g. absolutely defined risk, stop loss assumptions defined risk, market movement priced (IV) defined risks, your guess at support/resistance price, margin required). “per trade” risk is a...

Seems if you’re decent calling direction, you should trade delta for PnL. If you’re an unlucky investor, you should hedge your delta feelings with theta and/or Vega PnL. Also add in some hv/iv analysis and IV mean reversion (and skew analysis if you know how). Cross your fingers for some...

Agreed, those are strategy descriptions perhaps very simply described at least as "Term and/or vertical IV Skew" and both would be much more descriptive than saying its a "diagonal or vertical" STRATEGY. Add details of capital allocations and management actions (e.g. close @ profit targets or...

Those are the main trading/investing profit seeking "strategies" (iow root causes and sources of PnL). Iron condor, strangle, etcc are somewhat meaningful structure descriptions but don't really describe an actual tickers or trading PnL "strategy". Specific greeks e.g. amount of delta and...

The only 3 strategies available are delta, theta, and vega. Throw in long vs. short and many basic structures are available.

Possibly best to learn/use a good options platform (e.g. ibrk or Tos) as they have a built in models for assessing/managing the all major P&L risk aspects of an active semi-large options portfolio (delta (including beta weighted)/theta/vega/notional size,leverage etc).

IWM or RUT

afaik, In thinkorswim net liq assumes everything closed at instantanously available prices (e.g. bid for necessary sells, ask for necessary buys, iow worse prices than mid) and market values price at mid between bid and ask (iow better prices than bid and ask).

Theta is rate of change for extrinsic value only (iow time value). Some single options or spreads will only ever have extrinsic value (e.g. single short options, or short strangles), so will never go -ve theta. I think most spreads (verticals, calendars, IC etc.) or single options involving...