Vertical Spreads for Aggressive Growth

Aardvark · Jun 5, 2006

Quote from Cache Landing:

For most equity option the "theoretical price is pretty much always the same as the mid. This makes sense because it doesn'treally matter which way you solve the equation, you will come up with the same number.

The SPX is a different story. The b/a spread is so wide and fluctuates so quickly that you really need to have an idea about IV first and figure out the theoretical value of the otions from that. Many times the mid really doesn't tell you much about what you might recieve/pay at any given strike.

Hey Cache...TOS is coming out with something you will love in their new release (a couple of weeks I think). You will be able to see what the price of the underlying needs to trade at to fill your option bid! way clever

very useful for those of us that throw in our bid on the SPX...we will actually see what the spx needs to trade at to get filled. We got to preview the new changes in Chi...very nice

nlslax · Jun 5, 2006

Quote from Aardvark:

Hey Cache...TOS is coming out with something you will love in their new release (a couple of weeks I think). You will be able to see what the price of the underlying needs to trade at to fill your option bid! way clever very useful for those of us that throw in our bid on the SPX...we will actually see what the spx needs to trade at to get filled. We got to preview the new changes in Chi...very nice

There's also been some discussion about having additional analytical tools available. Should be interesting.

Cache Landing · Jun 5, 2006

Quote from Aardvark:

Hey Cache...TOS is coming out with something you will love in their new release (a couple of weeks I think). You will be able to see what the price of the underlying needs to trade at to fill your option bid! way clever very useful for those of us that throw in our bid on the SPX...we will actually see what the spx needs to trade at to get filled. We got to preview the new changes in Chi...very nice

It's about time someone did that.

It can get pretty time consuming figuring it out for all my positions.

Cache Landing · Jun 5, 2006

Aardvark,

Did they say anything about HV/IV charts?

Aardvark · Jun 5, 2006

Quote from Cache Landing:

Aardvark,

Did they say anything about HV/IV charts?

Yes and YES they will be adding HIV and IV to the charts...said its very difficult and the charts still have some bugs I guess but you will be able to over-lay and all that stuff...I still can't even draw

They really emphasize probabilities which is what I pretty much do anyway...

ryank · Jun 5, 2006

Aardvark,

Did TOS show you any "backdoors" to use to check out the stuff they are working on? They showed us one when I went to a seminar last year. The shortcut brought you to their new charting feature before it was released. Who was the instructor at the seminar?

Cache Landing · Jun 5, 2006

Quote from Aardvark:

Yes and YES they will be adding HIV and IV to the charts...said its very difficult and the charts still have some bugs I guess but you will be able to over-lay and all that stuff...I still can't even draw They really emphasize probabilities which is what I pretty much do anyway...

I've really been irritated sometimes with the lack of ability to overlay certain studies on their charts. Hopefully they give us the ability to overlay ANY study and not just the IV.

Cache Landing · Jun 5, 2006

Today's Action

BTC 4 PAAS JUN 17.5/20 p @ 0.75

Year to Date P/L

Account Value: $12,895.00

YTD Gross P/L: 3,390.00

YTD Commiss: 495.00

YTD Net P/L: 2,895.00

YTD % P/L: 29.0%

I opened this position looking for a good bounce from precious metals. That bounce finally started today, but it's getting a bit too close to expiry to be ITM still, so I decided to capture the small profits given that PAAS has historically had a hard time breaking $20.

Cache Landing · Jun 5, 2006

Today's Action Cont.

STO 1 SPX JUN 1245 p @ 7.00

Profit/Loss

Acct. Value: $12,893.50

YTD Gross P/L: $3,390.00

YTD Commiss: $496.50

YTD Net P/L: $2,893.50

YTD % P/L: 28.94%

Well, I left at 1:00 this afternoon to play in a golf tournament and came back to a market that had dropped like a rock. Luckily I had a couple limit orders that were triggered in my absence. The trade above was one of those orders. In the end I got into the JUN 1240/1245 bull put spread for $4.55 credit.

I'm looking at my ATI position tonight and will decide whether or not to close it out tomorrow morning. I'm sitting on >50% ROR after one day and I'd rather not press my luck in this market.

nlslax · Jun 5, 2006

Quote from Cache Landing:

Today's Action Cont.

STO 1 SPX JUN 1245 p @ 7.00

Profit/Loss

Acct. Value: $12,893.50

YTD Gross P/L: $3,390.00

YTD Commiss: $496.50

YTD Net P/L: $2,893.50

YTD % P/L: 28.94%

Well, I left at 1:00 this afternoon to play in a golf tournament and came back to a market that had dropped like a rock. Luckily I had a couple limit orders that were triggered in my absence. The trade above was one of those orders. In the end I got into the JUN 1240/1245 bull put spread for $4.55 credit.

I'm looking at my ATI position tonight nd will decide whether or not to close it out tomorrow morning. I'm sitting on >50% ROR after one day and I'd rather not press my luck in this market.

Great leg-in. The Leg-In Lady herself couldn't have done better.