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I think it's a horrible idea. When you're papertrading, you don't notice many things that you will notice when you're trading live. Daily fluctuations in P/L, IV spikes forcing you to buy back spreads at super high prices on a surprise gap down, huge gap moves overnight and tons of other...

Hi, are there any good platforms out there that allow you to autotrade an options portfolio? Any that give you inputs like real-time P/L, IV, delta, gamma, theta, vega? thanks.

Hi spindr0, thanks for the tip. Would you mind giving an example of this, and how you would manage them? How much of your portfolio would you dedicate to trading these bullish/bearish strategies? Thanks.

Thanks for the tip, will check it out.

Thanks. That's something I did think of but unfortunately the max loss curve of the backspread lands exactly where it's most probably for the underlying to end up should there be a huge gap down. I'm not very familiar with trading backspreads so again, pls feel free to correct me. They are an...

Hi dagnyt, Thanks for the input. I've tried FOTM front months and their hedging power decreases dramatically with time. If a huge gap happened closer to expiry, it might not cut my losses by much I think. I might be mistaken, but by using back months, since there's a lot of extrinsic left, a...

Perhaps not totally, but down to an acceptable level. Just looking for the most cost efficient way to do it.

hello, I'm looking for ideas/books on methods to protect a basically short gamma portfolio from catastrophic events. I am defining such an event as one where you will not be able to place any orders of any kind. I'll assume the exchanges will all be down, or forced to close for a period of...

thanks nazzdack.

If this is a dumb question, I apologise in advance. Say someone actually came up with a great trading system (discretionary), but it could be quite easily reverse engineered by the broker one trades through if the broker actually wanted to do it if he saw your account size mushroom. I'm not...

Hi Boris, Have almost finished reading the book. Great book, and I had a few questions. Your question above, are you a market maker or market taker, does the "market maker" type of trader trade directionally or...? I don't quite understand the difference would you mind elaborating or giving...

dmo, thank you.

Hi dmo, I looked through the stuff on Hoadley and didn't find a 3D modeller, do you have a direct link where they talk about that feature? Thanks.

RUT

Caveat: My own understanding of the models at this point is extremely rudimentary. But I do not think they converge on the same values. Take the binomial and trinomial models for instance, there is an additional path at every iteration of every node, and if you were to let that run its...

Thanks! Looks like a nice piece of software. But the options pricing model they use is really outdated. Do you know of any that use a more updated model? Trinomial/VSK or something like that? Thank you.

Hi, Does anyone know of a good 3D or 4D options position modelling tool (with color) where I can enter complex spreads, and will allow me to see: - profit/loss as a 3 dimensional image, with the passing of time or change in volatility - how Vega at different points of the position will...

MAW, thank you very much for the clear instructions.

This seems to be more true of the longer term options than of the nearer term. Why is this? I've attached an example of the SPX volatility curves of different expiration months. Even as far out as the MAR09, there is still some evidence of a smile on the upside. This smile is very obvious...

MAW, will something like this do? I've also included a column of close-to-close as a capture of daily volatility. Let me know, thanks.