Option trade ideas

Thx XM,
Will look at options (haha :)) and go for one as I need to get to grips with volatility as I plan to do a good few option trades this year.
I have access to TWS now and will have more data feeds when I get going over next few weeks - currently some of my quotes are delayed as not ready yet to resume trading.
Will post chart but not sure if some time diff on overlays - as you no there is no room for error when trading, and trying to save a few $$$ by not having adequate data feeds and relevant software, well, is just a fools way of trading.
J_S
 
Trade monitor chart.

J_S

EURUSD_OptionTrade(2)08May15.PNG
 
Actually, TWS has enough for pro to make their living. And, they do! Most platforms can't even chart options prices. Even more convenient is that multi-asset Risk Navigator.

But, I would rather learn to program a front end for IBKR than use TWS. It's quite ironic that the best broker has the worst front end design. It is also the reason TOS can charge 2x-10x more commission and take customers from them.
 
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I just discovered the whatif functionality in QTrader. I mainly trade exchange traded futures spreads. A little clunky and imprecise compared to retail stock options analytics. A more precise model may not help anyways. Things never don't precisely go as forecasted.

upload_2015-5-7_23-24-24.png
 
XM, will look at help manual for TWS options, but first glance it does not look very
user friendly. I think I prefer using excel.

A simple question for you in relation to the eurusd trade.

Sell an option = unlimited risk to the downside (you want price to rise)
Buy an option = limited risk at cost of premium paid (you want price to fall)

Why will volatility not affect both options more or less the same - is it due to the underlying futures price?

J_S
 
Correct.

You should chart the underlying futures as a spread and compare how much of the move can be attributed to change in the futures spread.

Typically, there will be an exchange traded spread with its unique symbol so you don't have to do a combo order.
 
No wonder I blew 17K in one day back in 2007, had made a good bit of money selling puts but I over traded just prior to crash and I panicked when volatility hit the roof.

I did not fully understand what you are now talking about, and also, unknown to myself at the time I could have easily waited a few days and recovered 10K, or even better, had I the knowledge at the time, could have traded myself out of trouble, as I had sufficient capital in account and just had to keep a level head, which of course is easier said than done when you do not really know what you are doing.

As I keep saying, anyone can make money trading, but only a few can keep the big gains.

I am very interested in options as I have made lots of money trading them before, and will do so again, but this time no panic or foolish thoughts if the shi* hits the fan.

Fail to Plan - Plan will Fail

I am in no hurry btw, have all the time in the world and want to sell some of it to someone else!

J_S
 
xandman said:
Correct.

You should chart the underlying futures as a spread and compare how much of the move can be attributed to change in the futures spread.

Typically, there will be an exchange traded spread with its unique symbol so you don't have to do a combo order.
More...

Am I correct to say that the exchange traded spreads are limited, and you might not get the months that correspond to your option spread selection, hence you need to chart the combo yourself in that case.

Need to understand this a bit more in relation to changes in premium.

J_S
 
J_Smith said:
No wonder I blew 17K in one day back in 2007, had made a good bit of money selling puts but I over traded just prior to crash and I panicked when volatility hit the roof.

I did not fully understand what you are now talking about, and also, unknown to myself at the time I could have easily waited a few days and recovered 10K, or even better, had I the knowledge at the time, could have traded myself out of trouble, as I had sufficient capital in account and just had to keep a level head, which of course is easier said than done when you do not really know what you are doing.

As I keep saying, anyone can make money trading, but only a few can keep the big gains.

I am very interested in options as I have made lots of money trading them before, and will do so again, but this time no panic or foolish thoughts if the shi* hits the fan.

Fail to Plan - Plan will Fail

I am in no hurry btw, have all the time in the world and want to sell some of it to someone else!

J_S
More...

I hope you don't get the impression that I know something just because you don't understand me.
 
J_Smith said:
Am I correct to say that the exchange traded spreads are limited, and you might not get the months that correspond to your option spread selection, hence you need to chart the combo yourself in that case.

Need to understand this a bit more in relation to changes in premium.

J_S
More...

Every possible month combination is available. It is listed a few years in advance.
 
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