Reverse Ratio Calendar Spreads?

[cnms2]

A four leg position simulator:

http://www.888optionsnet.com/investigator_2/wi_positionSimulator.asp

An ok options calculator:

http://www.888options.com/resources/options_calc.jsp

An options sensitivities simulator:

http://www.ftsweb.com/newfts/opsens.htm

Another option calculator:

http://www.ftsweb.com/options/opbarr.htm

A 20 leg expiration calculator:

http://www.optionstrategist.com/free/analysis/calcs/expiration/index.html

 

[darp]

Thanks cnms2,

I use hoadley, but his goes to 5 legs, never seen a 20 leg

 

[Eliot Hosewater]

Thinkorswim says 10-30% a year on iron condors and .5% extra per month if you sell credit spreads or calls on index underlying held.

Can you point me to where TOS says this?

 

[darp]

Likely on their site thinkorswim.com I heard from them in their free class by instructor "Don"

 

[Aardvark]

Quote from Eliot Hosewater:

Can you point me to where TOS says this?

I don't think they literally put it in writing...after all that could be construed as a "written guarantee" Don Kaufman and others just reference what some of their clients do and what is a good probability of accomplishing with your option trading allocation. NOT your total portfolio.

 

[darp]

The one person I know that uses it for his entire acct did do 20% in 2005 with it, and he running 6 figure acct. I do not use it. Am tending towards cal spreds under ratio like 5x4(puts).

 

[jdi]

Isn't reverse calendar = long front, short back, long gamma, short vega?

 

[darp]

The name is one a came up with, and yes can conflict with others. A normal ratio spread is like buying 10 and selling 15. In this case it more like buy 10 (either puts calls or stradle) and sell 8. Thus if it sits still you make less, but make money.

If it goes wild, then instead of losing money you would make money as gaining on 10 and losing on 8. That is the idea was floating. Have not seen it suggested before. Have you heard of it? Maybe there is a name to it.

 

[jj90]

Quote from darp:
Have not seen it suggested before. Have you heard of it? Maybe there is a name to it. [/B]

??? That is what the topic of the thread is.

 

[jdi]

Ok. Maybe what u mean is that u r reversing the ratio instead of reversing the calendar. If this is the case, i guess this is a simple ratio calendar spread. The ratio can be 1:1, 1:2, 2:1 etc. The name is not important as along as u know the pay off profile & the greeks.