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atticus' single-name delta book
- Thread starter atticus
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Quote from vanv0029:
This thread has been helpful, and I now have some experience with different
one and two week out butterflys. I have been holding usually to either the
expiration data or the day before and run into no spread quote from IB. It seems to
me I should just always trade iron butterflys because the veriticals do have quotes.
Also, seemingly there is only a tiny extra commission part from IB. Am I missing
something, i.e. do regular butterflys have advantages? I think current
IVs are coming down, but if that changes, I think iron butterflys are a lot easier
to change into calendars.
Also my profit from my GLD 158/155/152 put spread was much worse than I
thought because it turns out IB defaults GLD options to the 10x multiplier GLD7
options unless in the combo order I explicitly select the 100x multiplier at the
top. I thought I would mention this in case any other newbies are thinking
of trading the GLD butterflys.
wow.. about the GLD thats annoying.. theres less margin requirement on call/put flys as opposed to iron flys.. its not quoting you the bid ask spread because i'm sure as you know the otm's at expiration have no ask posted .. just price all the legs at mid (add subtract. etc..) then put your order relevant to the mid that you typically do..
iron flys benefit from all wings being otm.. all the otm options are much more liquid then itm's so you can get a tighter spread on the entire structure.. but idk .. i'll pay the additional spread to reduce the haircut..
Quote from atticus:
Good point on the 10s. I worked a large(ish) order on GOOG only to marked up $0.60 by the close but my PNL was vitually unch. Turns out I had traded the 10s.
For IB on the option trading page, does selecting the trading class on the drop down to GOOG only make a difference to your order? The default is all so you get GOOG and GOOG7 alternately in the chain. It will not save your selection so next session you have to select all over again.
Quote from cdcaveman:
wow.. about the GLD thats annoying.. theres less margin requirement on call/put flys as opposed to iron flys.. its not quoting you the bid ask spread because i'm sure as you know the otm's at expiration have no ask posted .. just price all the legs at mid (add subtract. etc..) then put your order relevant to the mid that you typically do..
iron flys benefit from all wings being otm.. all the otm options are much more liquid then itm's so you can get a tighter spread on the entire structure.. but idk .. i'll pay the additional spread to reduce the haircut..
I tried what you suggested earlier and put in a combo order to close just the ITM legs and it works fine. OTM left to expire worthless.
I think my motivation might not be the same as other posters. For me,
I am hoping to win a Noble Prize for showing that formalism is wrong.
Obviously, some additional income from low risk option trading would
be a positive.
I think that trying to submit a bug report to IB about the 10 share
options TWS bug might not be a good idea. Maybe similar to the Riley
character back in the old Alien movies submitting a bug report.
I am hoping to win a Noble Prize for showing that formalism is wrong.
Obviously, some additional income from low risk option trading would
be a positive.
I think that trying to submit a bug report to IB about the 10 share
options TWS bug might not be a good idea. Maybe similar to the Riley
character back in the old Alien movies submitting a bug report.
Quote from justrading:
I tried what you suggested earlier and put in a combo order to close just the ITM legs and it works fine. OTM left to expire worthless.
try Gold Futures.. GC ... you can reduce your commissions a little .. the nominal amount of a fly in GC is 5 or 6 times that of GLD.. its will save ya a little money on commissions...
Quote from vanv0029:
I think my motivation might not be the same as other posters. For me,
I am hoping to win a Noble Prize for showing that formalism is wrong.
Obviously, some additional income from low risk option trading would
be a positive.
I think that trying to submit a bug report to IB about the 10 share
options TWS bug might not be a good idea. Maybe similar to the Riley
character back in the old Alien movies submitting a bug report.
Noble prizes are much easier to get than Nobel prizes.
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