SPX Credit Spread Trader

Quote from rdemyan:

In TOS how do I graph the decay in the value of an option over time.

Thanks.
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In the strategy tab there is an adjustable date button on the right hand side just above your simulated trades at the bottom. You can change the date with that button and that willl show the decay in you daily graph of your strategy. Your daily risk graph will then move accordingly and you will see how the risk change with the decay. The expiration risk graph will not change but the daily graph will change showing you the decay. Hope that wasn't too confusing :)

You can also change vols by clicking on the little spanner icon under the date and the vols adjustment will appear. You can increase or decrease vols accordingly and see how your strategy perform.

Ive just signed up with TOS a couple of days ago and really like the platform, especially the strategy tab. Will keep IB for ES trades and TOS for SPX trades. Think i'll close my OX account.
 
After putting on both the Call FLY and PUT FLY, my haircut currently stands at $4,800.

Makes sense since maximum loss is around $10,000. Since the position is extremely hedged (especially if you do not hold until NOV expiration), you can take a few losses waiting for the large profit payout. I need a few months under my belt but I wonder if this is a way to place a hedge on the credit spread. In other words, if the market is gonna breach the short strike, sell a FLY at the strike where the profit profile is highest and significantly reduce the potential risk. Hmmmm

Either way, i think I can layer several of these across the same expiration and keep opening and widening the curve until expiration hits since the Haircut will stay quite small. If I did 10x as many (whichI would not ramp and do unless I had a better sense of these) the haircut should still be $50K.
 
Quote from optioncoach:

I need a few months under my belt but I wonder if this is a way to place a hedge on the credit spread. In other words, if the market is gonna breach the short strike, sell a FLY at the strike where the profit profile is highest and significantly reduce the potential risk. Hmmmm
More...

If this works out well I might have to look into getting my haircut :D.
 
Quote from optioncoach:

After putting on both the Call FLY and PUT FLY, my haircut currently stands at $4,800.

Makes sense since maximum loss is around $10,000. Since the position is extremely hedged (especially if you do not hold until NOV expiration), you can take a few losses waiting for the large profit payout. I need a few months under my belt but I wonder if this is a way to place a hedge on the credit spread. In other words, if the market is gonna breach the short strike, sell a FLY at the strike where the profit profile is highest and significantly reduce the potential risk. Hmmmm

Either way, i think I can layer several of these across the same expiration and keep opening and widening the curve until expiration hits since the Haircut will stay quite small. If I did 10x as many (whichI would not ramp and do unless I had a better sense of these) the haircut should still be $50K.
More...

Phil, you should start a haircut journal to show how to make the best use of haircut leverage.
 
Iw ill try and record the haircut with each prop trade and of course track my margin for each retail trade.

Only problem with haircut is that my sheets do not break out the haircut so as long as I have no other unrelated positions I can determine the haircut for this specific trade :)

My only handicap now is using ToS risk profile since I have to use SPX there and try to copy my position as best as possible. Will get OptionVue soon (trial) and see if I can get a better picture.
 
RUT is really strong, and is only 10 points away from the short strike for my call diagonal.

I am facing a gamma risk but might max out my profit if it reaches 760 at expiration.

My analysis shows that call diagonal is not giving a good reutrn (just 12% on my risk if it reaches 760 next week) because of the reduction in vol.
 
Quote from optioncoach:

Iw ill try and record the haircut with each prop trade and of course track my margin for each retail trade.

Only problem with haircut is that my sheets do not break out the haircut so as long as I have no other unrelated positions I can determine the haircut for this specific trade :)

My only handicap now is using ToS risk profile since I have to use SPX there and try to copy my position as best as possible. Will get OptionVue soon (trial) and see if I can get a better picture.
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Will NCompass provide the required analysis? Mav said it is a better platform than TOS, but not sure in what sense.

I am thinking of long gamma using haircut and short gamma using reg-T to maximize my leverage, but in the same time reduce the gamma risk.
 
I have not seen that in NCompass. If it has it I am not aware but I have not really traded equity options in my prop account for a long time. It did not appear to have the graphing capability like OV or ToS...

Quote from yip1997:

Will NCompass provide the required analysis? Mav said it is a better platform than TOS, but not sure in what sense.

I am thinking of long gamma using haircut and short gamma using reg-T to maximize my leverage, but in the same time reduce the gamma risk.
More...
 
Quote from yip1997:

RUT is really strong, and is only 10 points away from the short strike for my call diagonal.

I am facing a gamma risk but might max out my profit if it reaches 760 at expiration.

My analysis shows that call diagonal is not giving a good reutrn (just 12% on my risk if it reaches 760 next week) because of the reduction in vol.
More...

Just close my short strike of put diagonal (RUT 680 Put) at 0.15 as the put diagonal no longer provides adequate hedge for upward movement.
 
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