SPX Credit Spread Trader

Quote from yip1997:

Mo,

IMHO, one of the most important feature that is missing is the look-ahead risk confidence. As a risk manager or trader, you need to be able to measure your risk with probability, and the possible reward with probability, and adjust your leverage based on the risk confidence.

[edit] I am not aware of any commercial software that has this feature.
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Anypackage with a VaR module.
 
Quote from tplast:

When I was shopping for an analysys software, one the main features that sold me on OV was it's understanding of future options and span margin. When modeling a position, not only you get the inital and maintenace margin but also how the margin requirements will change with price movement, time and volatility changes.

I find that being able to maximize my marging usage and knowing that I will be able to hold the positions is worth the price of the software. Before, I used to reserve 2x the initial margin for each position because I had no idea of how much I was really going to need.
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This feature is similar to the one I am looking for. Can they calculate the margin change with a confidence level? I should take a closer look at it.
 
MoMoney--

Thanks for the suggestion. I unfortunately am not a proficient Excel user. I have it on my computer but have rarely used it. I checked out the Hoadley site and it looks like this is exactly what i am looking for. Is my lack of excel skills going to be an impediment to my use of the Hoadley software?

Thanks again MoMoney -- and if any others here have suggestions it will be most appreciated.
 
Quote from yip1997:

This feature is similar to the one I am looking for. Can they calculate the margin change with a confidence level? I should take a closer look at it.
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It can calculate the margin at any price and time on the PL curve at current IV or any assumed volatility. It can also calculate the probability of hitting that point in the curve.

In terms of how close the expected margin is to the actual thing, I find it's very close to the actual IB requirements. You need to define a few broker-specific paramaters at first.
 
Quote from Maverick74:

Trust me man, it's worth the 1k.
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Thanks for the info. The company though strikes me as one that has a propensity to nickle and dime the customer for add-ons,upgrades, data etc. I mean, $49.00 for just the trial! :D

I believe some of the skew modeling features you refer to are only in the pro version which is somewhat more than just $1K.

Nevertheless, I shall bear in mind some of the points you made and re-evaluate.
 
Quote from MACD:

Is my lack of excel skills going to be an impediment to my use of the Hoadley software?
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It might be a bit of a learning curve. The main advantage of Hoadley's stuff IMO is if you were planning to [EDIT: build your own spreadsheets and larger analysis in Excel or leverage some of the other features such as volatility forecasting etc.] If you weren't planning to do that then perhaps look elsewhere.

There is a trial the product I believe so you could try that out first.
 
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