Cool option plays
- Thread starter guru
- Start date
TOS doesn't have an option pricer yet?
[QUOTE="guru, post: 5410093, member: 5
Other than that, 99% of my plays are long wings and loaded with Vega. Also my 2nd post above had a better example that's more (not fully) safe from the risks you've mentioned.[/QUOTE]
When you long wing, you mean buy otm call or put? That case, most of time you will lose premium hope you catch a big fish by luck?
Other than that, 99% of my plays are long wings and loaded with Vega. Also my 2nd post above had a better example that's more (not fully) safe from the risks you've mentioned.[/QUOTE]
When you long wing, you mean buy otm call or put? That case, most of time you will lose premium hope you catch a big fish by luck?
Yes, and usually long both ends (calls and puts), but you could be long only on one end if you want to be directional vs neutral, for example.
Those should be cheap options purchased at low IV, so kinda like lotto tickets on top of being neutral and profiting off theta & vol.
Didn't understand. Isn't B/S-based pricing displayed in those P&L charts what's standard and provided by all brokers? Or which broker(s) have anything more sophisticated? Or what/where/how you'd want to price differently?
(I use historical pricing to come up with setups that I like to trade, but recently started using ToS for reviewing and adjusting them, so still getting used to this)
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do you mean butterfly?
Let me just add that, although I love MrPuppet as being one of most knowledgeable here, people's intelligence bias and making assumptions often get in the way, so they're unable to discover unique edges. They just dismiss stuff outright because of things they know in the back of their mind, but they'd fire biased people/employees who make assumptions and don't use hard data to prove their point.
So here comes some hard data, I scaled and backtested the above trade during the huge market crash of March 2020, and this trade was beautifully profitable, despite warnings and negative assumptions about Vomma
Basically where some people may discover treasure, others will pass right through, assuming there is no gold where they see dirt
If you want to make an argument, provide hard proof and evidence, not assumptions and stuff you know from theory. And especially if you want to discover edges!
So here comes some hard data, I scaled and backtested the above trade during the huge market crash of March 2020, and this trade was beautifully profitable, despite warnings and negative assumptions about Vomma
Basically where some people may discover treasure, others will pass right through, assuming there is no gold where they see dirt
If you want to make an argument, provide hard proof and evidence, not assumptions and stuff you know from theory. And especially if you want to discover edges!
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You can find one using the cboe website, but until you can do the math in your head, it's very helpful to test assumptions and see what would happen.
What they normally look like:
Bloomberg:
Eikon:
Looks like B/S pricing, right?
ToS options chain shows all the greeks, mark price and theo price. Their P&L charts are also based on the same pricing formulas. And you can also see how Greeks may be affected by changes in underlying's price:
Though to be specific, I didn't find standalone option pricer in ToS that would allow me to play with free-form values. For that I usually quickly find something on Google:
https://www.google.com/search?q=option+price+iv+greek+calculator