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If you use IB, look at IB's Risk Navigator software. It takes a bit of effort to get used to, but overall its pretty comprehensive on managing your portfolio risk by underlying, regions, industries and long/short and diving in by greeks, all in real-time. Addtionally, gives multiple measures for...

When you cross 750k and certain trade volume (500/mo or equivalent in commissions) as a retail investor, you get a direct access number where you are talking to a key-accounts team. These guys are slightly more knowledgeable than the rest of their support personnel. As far as negotiating better...

Hello Fellow-Traders, A few of us serious option traders get together every month in north dallas to discuss advanced options strategies and risk management. This posting is an effort to reach out to other serious option traders who are interested in getting together with us and learn from each...

Remember the stock borrowing is only for a daily basis. So you are not limited on selling covered calls against it. Also, i checked with IB-key accounts team and they are covering my dividends as well when shares are lent. Its extra income. If you have access to IB-key accounts, find out why you...

Looking at the Option Volatility charts, GPRO's option sentiment is neutral for a price of $9 in May and pushing towards $11.5 price in mid-June and down to $11 by end of Jun. Lets see how all of this pans out. My python scripts alert me on potential option trades. - m

Hi Steve, I do a variation of this strategy for around 5-7% of my portfolio. Its an active trading strategy due to constant adjustments and delta balance that you got to do. I assume you have proper risk controls to reduce exposure with appropriate (less theta) longs. In my observation, the...

Yup! This works better to the large funds who may carry a large array of stocks that were acquired for lower prices and are properly hedged. One portfolio manager who I've been chatting with explained to me that large institutions maintain a small book of business (5% to 7%) exclusively to take...

30-45 DTE is way too long of a time period to stay long. Theta decay is going to pretty much take away 30% of your value if the underlying stays neutral. I have experimented and backtested with various underlyings on both long and short straddles. A lot depends on the underlying. Certain rally...

The stocks that benefit the greatest from the yield enhancement program usually are not dividend based stocks. DOW30 and mid-cap SP500 companies have yields at 1-2%. Stocks like GPRO gives daily interests of 20%+ depending on their SLB rates and volatility.

Pseudo-Automatic, when you are approved for portfolio margin. Manage Account > Trade Configuration > Permissions Check/Uncheck box "Stock Yield Enhancement Program"

Yup! HobbyTrading is right. Anybody with a PM account automatically participates in the stock yield enhancement program where IB automatically lends your stock to other shorters on a daily basis based on the SLB rates. Stocks like GPRO sometimes generate a daily rate of 20% or more. I keep an...

Gentlemen, Thanks for the continued discussion on this topic. Appears that the classic option traders dont go beyond the greeks. My question was motivated how to best manage my global book when dealing both long and short options and appropriately, filter and optimize the rich / cheap /...

Thanks Niten, As a traditional marketmaker, we are using LiveVolX to aid with our volatility forecasting and trade with their skew curves. Also, we try to stay net long with options (market value-wise) and hence slightly positive vega. However, my question is if anybody on this forum with 7 to...

Hello, I've come across option traders who try to capture theta premium with guidelines such as theta/vega ratio of 1:1 (for a net short vega position) and theta/gamma ratios above 0.2 for overall portfolio greeks primiarily as a mechanism to manage risk and income goals. Some of this makes...