botpro (p)

botpro · Mar 14, 2016

optioncoach said:
The concern is you will see what is happening in real time and then go to the delayed quote for a much better fill which stretches the profit on a trade. Just not sure I understand why use delayed quotes which can question your entries.

Hmm. I understand your concerns, but there is IMO no simple other way.
Since the position is held at least 1 day then the 20 minutes of the delayed data should IMO not much make a difference.
And: opening positions will be announced before market open as they use the EOD prices of the prev market day.

botpro · Mar 14, 2016

By this action I will try to animate also other people to do similar, ie. people who don't have access to RT data.
I'll try to show a way on how to do it with delayed public data.

botpro · Mar 15, 2016

Regarding the Close-Problem:
I think best is if I announce the intent at least 1 hour in advance, like this:
"Closing position XYZ in 1 hour"

botpro · Mar 15, 2016

The very first trade is this one:
Underlying: JNJ (Johnson & Johnson), SpotAtEOD=107.66
Options: Exp=2016-May-20, Type=Call, Strike=115, FillPrice=0.35, Contracts=600 --> Value=21,000
"115.00 JNJ160520C00115000 0.36 0.32 0.38 0.00 0.00% 270 0 13.25%"

botpro · Mar 15, 2016

2nd pos:
Underlying: PM (Philip Morris Int, Inc.), SpotAtEOD=96.44
Options: Exp=2016-Jun-17, Type=Call, Strike=105, FillPrice=0.31, Contracts=650 --> Value=20,150
"105.00 PM160617C00105000 0.31 0.26 0.35 0.00 0.00% 157 0 13.38%"

eganon69 · Mar 15, 2016

botpro said:
The very first trade is this one:
Underlying: JNJ (Johnson & Johnson), SpotAtEOD=107.66
Options: Exp=2016-May-20, Type=Call, Strike=115, FillPrice=0.35, Contracts=600 --> Value=21,000
"115.00 JNJ160520C00115000 0.36 0.32 0.38 0.00 0.00% 270 0 13.25%"

Care to explain WHY you are taking that trade. Looking at it from my point of view I would take the opposite trade and be either neutral (no trade) or biased to short at 107.66. But I don't trade options so maybe I just don't understand why you would buy call options here.

botpro · Mar 15, 2016

3rd pos:
Underlying: PEP (Pepsico, Inc), SpotAtEOD=100.65
Options: Exp=2016-Jul-15, Type=Call, Strike=110, FillPrice=0.29, Contracts=700 --> Value=20,300
"110.00 PEP160715C00110000 0.30 0.24 0.32 0.00 0.00% 168 0 11.70%"

botpro · Mar 15, 2016

eganon69 said:
Care to explain WHY you are taking that trade. Looking at it from my point of view I would take the opposite trade and be either neutral (no trade) or biased to short at 107.66. But I don't trade options so maybe I just don't understand why you would buy call options here.

I did a ranking using multiple factors, and there this underlying stock is among the top positions.
And: as there is still plenty of time till expiration, then the price should be able to develop itself till then.
And: vola currently is low.
Another factor is the overall market: I think the market already has made a turn to north.
All these picks are usually for mid-term (1 to 3 or 4 months).
I'm aware of the fact that some of these picks have closed high, so a short term correction is to be expected, but IMO the overall up-trend should then continue.

eganon69 · Mar 15, 2016

botpro said:
I did a ranking using multiple factors, and there this underlying stock is among the top positions.
And: as there is still plenty of time till expiration the price should be able to develop itself till then.
Another factor is the overall market: I think the market already has made a turn to north.
All these picks are usually for mid-term (1 to 3 or 4 months).
I'm aware of the fact that some of these picks have closed high, so a a short term "correction" is to be expected, but IMO the overall up-trend should then continue.

Ok. I would agree with the uptrend in your picks but why not wait for a lower risk entry? All of them seem to be breaking out or have just broken out or have a trend in place. But they also look over bought in the short term. Why not wait for reversion to the mean? I don't trade options and understand them poorly,.. (So not sure about this) but wouldn't the CALL options get cheaper if the underlying price were falling (reverting to the mean)? Also where are your stops? Thanks.

botpro · Mar 15, 2016

eganon69 said:
Ok. I would agree with the uptrend in your picks but why not wait for a lower risk entry? All of them seem to be breaking out or have just broken out or have a trend in place. But they also look over bought in the short term. Why not wait for reversion to the mean? I don't trade options and understand them poorly,.. (So not sure about this) but wouldn't the CALL options get cheaper if the underlying price were falling (reverting to the mean)? Also where are your stops? Thanks.

I'm applying a system. Here not the price development alone decides, but also the applied active strategy, ie. money management etc.
But these steps will come only later.
Theoretically I also could make the picks blindly, and it still should function. But that extreme I'm not going to try out here.

Regarding stops: there is only a TargetStop, but no StopLoss.
The position will be "adjusted" if necessary; the aim is to reach the Target.
The Target is dependent on the vola. I'll state them in future picks.

Option premiums depend on multiple variables. The development of the price of the underlying
and the development of the volatility play a big role; the higher both the higher the premium, and vice-versa...

Btw, this is pure options trading without the intent to ever own the underlying...