Search results

Thinkorswim doesn't offer futures options, yet.

coolraz, as hopback said it above: Why do you need a straddle that will be completely symmetrical? And even if you do set it up there's no guarantee that it will be cause the volatility may change assymetrically as the stock moves.

One note of caution, the underlying instrument for the futures and the options is NOT the spot VIX index, so be careful about using the spot VIX to make any trading decisions! For more info check out the CBOE website.

A call and a put generally trade at the same implied volatility - put-call parity! Most likely, what the OP meant by the skew is that as the underlying moved, the strike moved along the volatility skew curve and thus the implied volatility of those options changed affecting the pricing. Also...

I agree it's not an easy question to answer cause markets constantly change which means that things that worked last year may no longer work this year. I don't think there's a set period of time after which you can claim to have an edge. You maz be profitable for years, even decades and then...

Consistently profitable trading record.

The egde comes from your trading approach, i.e. your strategy, not from the instrument itself, although the type of instrument can play a important role in your trading edge. If an instrument itself had an edge then everyone would trade it and the edge would disappear.

Obviously, a delta of 0.8 or more means the option is ITM, so just go straight for the ITMs and make your selcetion from there.

As far as I know TOS will offer it as soon as it is available, not sure of any conditions, but the best way to get the most accurate answer is to ask TOS directly.

Trading ITM options with a delta of at least 0.8 solves the decay problem, not fully obviously, but enough, while still giving you good leverage so you don't need a lot of capital. The downside is wider bid/ask spreads. For example, I'm currently long some ITM calls with 0.9 delta, the...

Any adjustment to a losing trade will result in an even worse risk/reward ratio so just close it out and move on. Model the adjusted position and then compare it to the market price of that position and you'll see that you'd never even consider such a trade in the first place so why should...

Yup, that's about as complicated as it is.:)

I don't know how much time has passed since you looked at their software, but I can tell you that in the last year it has come a long way, so it may still be worth it re-opening that account.:)

You should really change the terminology you use! TOS is doing NO estimation of future implied volatility whatsoever, the only one making estimations is you when you change the volatility number on Analyze tab in TOS.

I hope it's a typo, in order to sell an iron condor you want to move towards the bid not ask!

TOS can model each expiration independently, not strike.

Exactly, modelling future PnL requires a lot of guessing, both for volatility and stock price. The model is only as good as are the assumptions/inputs, so if your assumptions are wrong then your modelled PnL will be significantly different from the actual one, but that doesn't mean the model is...

I never debated this issue. The point is that volatility rarely drops by an equal amount across expiries and strikes, also don't forget about a move along the volatility skew when modelling your PnL.

It's not the same, theoretical IV is the IV of the option based on the current market option price. TOS simply takes current market price and then uses Black-Scholes or some other model to find the implied volatility. When you change the volatility in the model you obviously change the option price.

Yes, they do drop by more provided their IV drops by the same amount as the IV of the options with lower vegas. In other words, given a fixed drop in IV, options with higher vega will drop more than options with lower vega, HOLDING EVERYTHING ELSE CONSTANT.