TOS TD Ameritrade - Portfolio Margin Test Review
- Thread starter mozung
- Start date
Didn't stop me from practically writing my own market-making software
(not that I can steal trades from MMs, but using their own option structures/setups)
Oh, I didn't realize those were two different months. This makes this whole question invalid indeed, and even @taowave wouldn't be able to answer it (as he wasn't able to answer any of these questions anyway). So OP @mozung, you may want to contact TDA and tell them that question #14 seems invalid and doesn't have an answer, because with two different months sometimes the vega can be positive and other times negative.
Here is an example with positive Vega:
vs different months with negative Vega:
Everyone else here didn't even look at the questions and just bullshits about how standard they are, and much they know about Vega. Maybe they can provide the right answer
Are you serious????
The question is invalid??
You don't know the simple greeks on a diagnol????
Or are you suggesting since they didn't specify the year, rates, etc it could be a 3 year spread and we don't know ATM foward?? You got me
I don't answer as you guys are "invalid" on basics and I am not here to help lazy ass people pass a simple PM exam
The question is invalid??
You don't know the simple greeks on a diagnol????
Or are you suggesting since they didn't specify the year, rates, etc it could be a 3 year spread and we don't know ATM foward?? You got me
I don't answer as you guys are "invalid" on basics and I am not here to help lazy ass people pass a simple PM exam
Oh, I didn't realize those were two different months. This makes this whole question invalid indeed, and even @taowave wouldn't be able to answer it (as he wasn't able to answer any of these questions anyway). So OP @mozung, you may want to contact TDA and tell them that question #14 seems invalid and doesn't have an answer, because with two different months sometimes the vega can be positive and other times negative.
Here is an example with positive Vega:
View attachment 261244
vs different months with negative Vega:
View attachment 261245
Everyone else here didn't even look at the questions and just bullshits about how standard they are, and much they know about Vega. Maybe they can provide the right answer
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Lol, I don't have to make assumptions as I provided hard data/example from TDA's own system that shows that the Vega is negative and changes to positive as we're nearing expiration (when one option expires then mainly the other one is in play).
This either makes the question invalid, or TDA's greek calculations invalid. Can't be both valid, it's black and white.
And it doesn't help that the question doesn't specify the year of expiration for each option (is that the December before or after January, and which option expires first?), which may also make it invalid.
Only @FSU has proven to be so attentive he realized on 1st try he can't be sure of the answer.
This either makes the question invalid, or TDA's greek calculations invalid. Can't be both valid, it's black and white.
And it doesn't help that the question doesn't specify the year of expiration for each option (is that the December before or after January, and which option expires first?), which may also make it invalid.
Only @FSU has proven to be so attentive he realized on 1st try he can't be sure of the answer.
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Thank you guys,
For question 2, basically I didn't attempt. I knew answer be C, as a loss of 12500. I got stuck at word “parity”. I was like may be my answer is too simple. I don’t know why examiner would ask “ buy back at parity”. I wanted to understand the question right. so parity is like, the current price?
For question 11, It is option A. If 1 dollar approaches to the strike price, it would increase by delta. So it should be 1.5.
For 14, I used sold vertical as long 100 put and then short 110 put in TOS simulator. I also got positive delta and negative vega. I think examiner may have intent to test the simplest approach. So if all of the other questions are correct. Then may be I will take a risk. If they I’m wrong on one question then this would be it. lol
Please advice and I will go ahead submit the test.
For question 2, basically I didn't attempt. I knew answer be C, as a loss of 12500. I got stuck at word “parity”. I was like may be my answer is too simple. I don’t know why examiner would ask “ buy back at parity”. I wanted to understand the question right. so parity is like, the current price?
For question 11, It is option A. If 1 dollar approaches to the strike price, it would increase by delta. So it should be 1.5.
For 14, I used sold vertical as long 100 put and then short 110 put in TOS simulator. I also got positive delta and negative vega. I think examiner may have intent to test the simplest approach. So if all of the other questions are correct. Then may be I will take a risk. If they I’m wrong on one question then this would be it. lol
Please advice and I will go ahead submit the test.
If you (FINRA, TDA, examiner) expect detail and attention from others, then you can’t miss any detail and not be specific on the dates in your own question. The guy who wrote the question would be torn apart or fail the same question by any fund that would interview him/her, because they require paying attention to detail.
But that was not even the main issue. If the same question is posed in June vs November then the greeks will change. I provided specific example showing Vega being negative at first, but changing to positive as the short option nears expiration. It’s based on TDA’s own greeks calculations.
Guru,you using AAPL as an example for the specified diagnol,but you are not using 100 as the spot price. You are using 126,of course the Vega changed and went negative... which is I specifically said foward ATM...Think bro..
You need to simulate the spread at different dates keeping spot at 100 and assume the Dec exp is shorter dated...
That's the only hiccup,and why I brought up large discrepancies for DTE and ATM foward..Not sure you are getting it
Read the question..Spot is at 100,long put is ATM (100 strike),short put is 110 strike,assume expiring 1 month earlier..
You need to simulate the spread at different dates keeping spot at 100 and assume the Dec exp is shorter dated...
That's the only hiccup,and why I brought up large discrepancies for DTE and ATM foward..Not sure you are getting it
Read the question..Spot is at 100,long put is ATM (100 strike),short put is 110 strike,assume expiring 1 month earlier..
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