falcon spend some time on the chats offered on how to use the platform they will walk you thru it.... go to the help screen on the bottom they have a series of chats
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Trading Long Straddles
- Thread starter falconview
- Start date
Thankyou Richard
I spent a couple of hours with the TOS HELP desk and they walked me through it. By that time, for this week, the spread had gone too small. However using the same knowledge I was able to put on a CONDOR which uses the same setup. Apparently I was having server problems and that also slowed things down as I could not download the order form.
Took me most of the day, but I did get in a small CONDOR, a Calendar, several accumulative directional buys and I will probably do a straddle later in the week.
Too bad my account is so small. But call it a learning week, as I enter some new types of stragegies for me, with small amounts, to test the waters and learn the quirks, so to speak.
I spent a couple of hours with the TOS HELP desk and they walked me through it. By that time, for this week, the spread had gone too small. However using the same knowledge I was able to put on a CONDOR which uses the same setup. Apparently I was having server problems and that also slowed things down as I could not download the order form.
Took me most of the day, but I did get in a small CONDOR, a Calendar, several accumulative directional buys and I will probably do a straddle later in the week.
Too bad my account is so small. But call it a learning week, as I enter some new types of stragegies for me, with small amounts, to test the waters and learn the quirks, so to speak.
Quote from optionbull:
Than you.
If I buy ATM what strike to choose Otm and why? and I am guessing this is better than a bet on the futures if and when I have a strong directional bias on the underlying itself for a few days or week.... Not a opinion about volatility IV or otherwise
If it is for a few days, you might be better off just buying the futures or an ITM option. Every time you add an option, you are paying the bid/ask spread and you are altering the greeks of the position. Unless the options are overpriced, you really won't get much help from that short option (except possibly buffer an adverse move). I often find it is easier to adjust my positions with the underlying than add long/short options to what is open. The underlying is pure delta, you don't have to monkey with the gamma/vega/theta etc. impact
Quote from falconview:
Thankyou Richard
I spent a couple of hours with the TOS HELP desk and they walked me through it. By that time, for this week, the spread had gone too small. However using the same knowledge I was able to put on a CONDOR which uses the same setup. Apparently I was having server problems and that also slowed things down as I could not download the order form.
Took me most of the day, but I did get in a small CONDOR, a Calendar, several accumulative directional buys and I will probably do a straddle later in the week.
Too bad my account is so small. But call it a learning week, as I enter some new types of stragegies for me, with small amounts, to test the waters and learn the quirks, so to speak.
You probably already know this but you should really understand the TOS platform before you start putting on trades, especially multi leg short gamma ones like a condor. Do you have a plan in place if the underlying makes a strong move and you are not sitting in front of your computer? Are you comfortable with that white T+0 line curving that far down on either end on your risk profile screen? A big move is not the time you want to try and figure out how to get out of a trade quickly. And I can tell you from personal experience, contingent orders to close things out will kill you if things start moving.
Quote from Dolemite:
You probably already know this but you should really understand the TOS platform before you start putting on trades, especially multi leg short gamma ones like a condor. Do you have a plan in place if the underlying makes a strong move and you are not sitting in front of your computer? Are you comfortable with that white T+0 line curving that far down on either end on your risk profile screen? A big move is not the time you want to try and figure out how to get out of a trade quickly. And I can tell you from personal experience, contingent orders to close things out will kill you if things start moving.
While I am on my soap box, I will add that I learned the hard way that the risk graph you see in thinkorswim or any other options platform is an illusion. Especially when you have a multi leg option position. Everyone is drawn to the expiration graph and in reality, few of us hold a position until expiration. Another thing most of us don't do is manipulate the volatility (it is the wrench at the bottom of the risk profile tab in tos) to see what will really happen when a move occurs and changes the volatility. That is why you really have to understand the greeks to be successful at this (unless you are a great directional trader and your delta can cover up your other deficencies or you have some other edge that gives you an advantage over the person buying/selling the option to you).
Well I am following the threads here, and on my option trades. There are so many variables I don´t know, that I don´t even have enough knowledge to ask a question.
On the other thread they talk about V and bps, or something. I haven´t a clue what they are talking about, yet.
My CONDOR has gone outside the parameters and seems to be losing money right now. The middle sold strikes were 67 and 66. We did touch about QQQ index 66.50 at one time. And I noticed I could have made +.38 cents. Now we are above 67 strike, I seem to be losing -.26 cents. Got two days for it to drift down though. From this cash trade, I am perhaps understanding, that I would get the best performance out of my CONDOR if it passes through the middle of my two sold strikes again? I theeeenk?
The learning process is slow. I just hope it is not expensive as you suggest. In that sense, QQQ moves more stodgy than some of the stuff I see others on here trading. My bets are relatively small at two or three contracts.
I´m going to chat with the TOS help desk tomorrow and find out which arrow on which TOS strike I have to click to get the right order form to close this CONDOR properly? I made an unholy mess of that CALENDAR today Wednesday and it´s the second time. It was winning too. Apparently it cost me my winnings from my long straight trades.
I´m currently holding the CONDOR. And a long position in CALLS. If one thing I am learning, it is to diversify my trade strategies.
On the other thread they talk about V and bps, or something. I haven´t a clue what they are talking about, yet.
My CONDOR has gone outside the parameters and seems to be losing money right now. The middle sold strikes were 67 and 66. We did touch about QQQ index 66.50 at one time. And I noticed I could have made +.38 cents. Now we are above 67 strike, I seem to be losing -.26 cents. Got two days for it to drift down though. From this cash trade, I am perhaps understanding, that I would get the best performance out of my CONDOR if it passes through the middle of my two sold strikes again? I theeeenk?
The learning process is slow. I just hope it is not expensive as you suggest. In that sense, QQQ moves more stodgy than some of the stuff I see others on here trading. My bets are relatively small at two or three contracts.
I´m going to chat with the TOS help desk tomorrow and find out which arrow on which TOS strike I have to click to get the right order form to close this CONDOR properly? I made an unholy mess of that CALENDAR today Wednesday and it´s the second time. It was winning too. Apparently it cost me my winnings from my long straight trades.
I´m currently holding the CONDOR. And a long position in CALLS. If one thing I am learning, it is to diversify my trade strategies.
Quote from falconview:
Well I am following the threads here, and on my option trades. There are so many variables I don´t know, that I don´t even have enough knowledge to ask a question.
On the other thread they talk about V and bps, or something. I haven´t a clue what they are talking about, yet.
If you had read Natenburg, yet would have been now.
Quote from Dolemite:
If it is for a few days, you might be better off just buying the futures or an ITM option. Every time you add an option, you are paying the bid/ask spread and you are altering the greeks of the position. Unless the options are overpriced, you really won't get much help from that short option (except possibly buffer an adverse move). I often find it is easier to adjust my positions with the underlying than add long/short options to what is open. The underlying is pure delta, you don't have to monkey with the gamma/vega/theta etc. impact [a couple days o
Thanks
I get the itm. Option but when do verticles make sense
Quote from optionbull:
Quote from Dolemite:
If it is for a few days, you might be better off just buying the futures or an ITM option. Every time you add an option, you are paying the bid/ask spread and you are altering the greeks of the position. Unless the options are overpriced, you really won't get much help from that short option (except possibly buffer an adverse move). I often find it is easier to adjust my positions with the underlying than add long/short options to what is open. The underlying is pure delta, you don't have to monkey with the gamma/vega/theta etc. impact [a couple days o
Thanks
I get the itm. Option but when do verticles make sense
I would choose a vertical if the volatility is up and the price is high. Especially to the upside. You will find that as a stock goes up the volatility typically comes out so the short you sold against the long drops in price and you will realize your profit faster.
Anyone using TOS or any platform that shows risk graph needs to know that while the expiration date graph that those platforms produce are accurate to the bone, what's important to us retail customers is what happens between now and expiration (i.e., that white line in TOS)
I don't consider myself past the beginner stage yet. I still like fooling around with option combinations and where I think the biggest drawback lies (regarding these trading front end software) is combinations where multiple expirations are involved (i.e. Calendars, time flies, etc).
I've been fooled numerous times. Also, these packages used models to give you approximate theta decay and effect of implied volatility change.
So take the risk graphs with a grain of salt. They do a really good job of it but still you have to be careful.
And falcon, you really need to be absolutely certain on how to use the software man. TOS in my opinion is the easiest package out there in terms of sending combination orders. Like closing orders is a joke... literally..
I don't consider myself past the beginner stage yet. I still like fooling around with option combinations and where I think the biggest drawback lies (regarding these trading front end software) is combinations where multiple expirations are involved (i.e. Calendars, time flies, etc).
I've been fooled numerous times. Also, these packages used models to give you approximate theta decay and effect of implied volatility change.
So take the risk graphs with a grain of salt. They do a really good job of it but still you have to be careful.
And falcon, you really need to be absolutely certain on how to use the software man. TOS in my opinion is the easiest package out there in terms of sending combination orders. Like closing orders is a joke... literally..