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  • #481
  • Jan 1, 2017 5:09pm Jan 1, 2017 5:09pm
Quoting The Fool
{quote}well $1.20/ rt cuz they tack $0.10 clearing to close ... quibble...but, where do you get $3.00/rt at TDA? I'm paying $9.95 +$0.75/lot there which comes out to $1.50/rt and change on a larger trade. Anyway, tworks might work out if somebody wants to trade small trade ofen, you'd just have to do the math on your sizing....not looking too good to me yet tho
$1.50/contract was "the Dough deal." I think all I had to do to get that was go through Dough's quizzes and then call TDA and say, "Hey, I want the Dough deal, since I did Dough's options education thingie ... ." The e-mail I got from TDA post-TastyWorks announcement was basically, "Hey, we're still going to give you the Dough rates. Please don't jump ship." Well, not exactly, but you get the drift ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #482
  • Jan 1, 2017 5:18pm Jan 1, 2017 5:18pm
Quoting The Fool
{quote}well $1.20/ rt cuz they tack $0.10 clearing to close ... quibble...but, where do you get $3.00/rt at TDA? I'm paying $9.95 +$0.75/lot there which comes out to $1.50/rt and change on a larger trade. Anyway, tworks might work out if somebody wants to trade small trade ofen, you'd just have to do the math on your sizing....not looking too good to me yet tho
But you're definitely correct ... . You need small fees relative to max profit to get anywhere with trade small (1 contract) trade often ... . Even with Dough rates, an iron condor would cost $12 round trip, generally. With a 1-contract SPY iron condor, where you look for a 1.00 cr on a three-wide on setup and to take profit at 50% max (.50), a .12 fee/comm with leave you with .38 ($38). $12 in fees will have taken 24% of your gross profit ... . On the other side of the coin, a $200 max loss setup becomes a $212 max loss setup with that fee arrangement (it doesn't usually work out that way unless you're a total doof and let the setup go down in flames without doing squat, but you get the gist ... ).
Fireworks are fun ... as long as you don't blow your fingers off.
  • #483
  • Jan 1, 2017 6:18pm Jan 1, 2017 6:18pm
The other issue with trading small, trading often is trade size relative to account. Point in fact, a $5k account holder is hard pressed to trade even a 1-contract SPY 3-wide with a BP of $200. That's 4% of total BP which is pushing the rule of thumb limits for trade sizing (2-3% per trade is kinda standard rule of thumb).

Nothing about fees/comms is going to affect that, unfortunately, or make those types of trades "more accessible" to anyone ... . That being said, there's a whole universe of underlyings accessible to "small" account holders, such as sector ETF's, the vast majority of which trade below $75/share and that are a repository of decent premium to be sold ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #484
  • Jan 1, 2017 8:35pm Jan 1, 2017 8:35pm
trade small works fine on SPX - I trade SPX spreads constantly and rarely put on spreads larger than 10-lot, often just shoot 1- and 2- lot calendars etc....I will open a tworks account and see how they play....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #485
  • Jan 1, 2017 8:37pm Jan 1, 2017 8:37pm
Quoting ZebraSquirl
$1.50/contract was "the Dough deal." I think all I had to do to get that was go through Dough's quizzes and then call TDA and say, "Hey, I want the Dough deal, since I did Dough's options education thingie ... ." The e-mail I got from TDA post-TastyWorks announcement was basically, "Hey, we're still going to give you the Dough rates. Please don't jump ship." Well, not exactly, but you get the drift ... .
I see....well, that $3.00/rt flat only beats TDA's normal pricing up to a certain size - I will leave the math up to you.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #486
  • Jan 2, 2017 12:45pm Jan 2, 2017 12:45pm
Quoting The Fool
{quote}I see....well, that $3.00/rt flat only beats TDA's normal pricing up to a certain size - I will leave the math up to you.
At some point, "size matters." (That's what she said).
Fireworks are fun ... as long as you don't blow your fingers off.
  • #487
  • Jan 2, 2017 12:55pm Jan 2, 2017 12:55pm
The skinny on VIX short call verts. https://www.tastytrade.com/tt/shows/...res-12-16-2016

Here, the comparison and contrast is with going VIX short call vertical versus buying XIV or SVXY long stock, with the stats favoring shorting VIX on >20 pops using an ATM short call and a 10-delta long call, 45 DTE.

That being said, there are certain advantages to buying and holding XIV, SVXY stock as compared to diddling with a VIX short call vert: (1) scalability; (2) the stock doesn't expire as the VIX options will, so you don't have to dink with rolling and such; and (3) XIV/SVXY benefit from contango drift, while VIX does not.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #488
  • Jan 2, 2017 8:14pm Jan 2, 2017 8:14pm
DAMN, /NG took a dump to start 2017....I thought we could get a run at $4.00+ going with cold weather setting up, but maybe it doesn't matter that much anymore - there's just so much supply that can be brought online....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #489
  • Jan 3, 2017 12:01pm Jan 3, 2017 12:01pm
Quoting The Fool
DAMN, /NG took a dump to start 2017....I thought we could get a run at $4.00+ going with cold weather setting up, but maybe it doesn't matter that much anymore - there's just so much supply that can be brought online....
Wakes up, opens platform, does a WTF at oil down, natty down, gold up, market up, dollar up ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #490
  • Jan 3, 2017 12:06pm Jan 3, 2017 12:06pm
Rolling: NVDA Jan 20th 130/135 short call vert to Jan 20th 115/120 short call vert for a .34 (iron condor short put side defense). With 17 DTE, hesitant to roll in closer to current price ... . Sooo whippy ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #491
  • Jan 3, 2017 12:23pm Jan 3, 2017 12:23pm
Quoting ZebraSquirl
{quote} Wakes up, opens platform, does a WTF at oil down, natty down, gold up, market up, dollar up ... .
2017 gonna be a party. I have GLD and AUY call plays but I am shooting further out, Feb-Mar. I also have a Jan20 FXE skinny put fly - $99/98/97 - with $98 m/l parity there. I have been missing spot and will prolly try to revive fx trading this year....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #492
  • Jan 3, 2017 3:37pm Jan 3, 2017 3:37pm
Quoting The Fool
{quote} 2017 gonna be a party. I have GLD and AUY call plays but I am shooting further out, Feb-Mar. I also have a Jan20 FXE skinny put fly - $99/98/97 - with $98 m/l parity there. I have been missing spot and will prolly try to revive fx trading this year....
There's a certain "cleanliness" to spot ... . The downside is my not having or wanting to devote a ton of screen time to it. My years of spot were basically a lot of fairly sleepless Asian, London session trading. Oh, were I in a better timezone to trade the London/NY overlap ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #493
  • Jan 3, 2017 4:15pm Jan 3, 2017 4:15pm
yeah, I hear ya on the time zone thing. But my approach to markets now is zoomed out enough that the tz issues are not that relevant. I have been wanting to work out some spot + options strategies.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #494
  • Jan 3, 2017 6:02pm Jan 3, 2017 6:02pm
Quoting The Fool
yeah, I hear ya on the time zone thing. But my approach to markets now is zoomed out enough that the tz issues are not that relevant. I have been wanting to work out some spot + options strategies.....
It's the way to go if you can't have eyeballs on it the whole time ... . Larger time frames, scale in small, and establish a decent "net value" position that you can write home about ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #495
  • Jan 3, 2017 6:20pm Jan 3, 2017 6:20pm
Have you ever thought about trying to hedge spot fx positions with correlated futures or equity options positions? Or vice versa?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #496
  • Jan 3, 2017 9:36pm Jan 3, 2017 9:36pm
For instance... the screwy thing about options spreads is their nonlinear P/L functions, always changing with time & the greeks, sheesh. But often the spreads P/L's become m/l linear - like at the downslope losing P/L beyond the b/e's of an IC at expiry.

If you entered a spot E/U long or short at the b/e point of the FXE IC shown, the spot trade would gain closely to the losing slope of the IC. You could close the two at the same time for a near wash, while the other end of the IC would remain safe and the original profit there intact. This is a way to make a risk-free trade.....
Attached Image (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #497
  • Jan 3, 2017 9:43pm Jan 3, 2017 9:43pm
in fact, you can put together the above trade with lots of different instruments (spot vs futures options or equity options, futures vs. futures options or equity options). You just need to be able count on their near perfect correlation (or even inverse correlation)....beyond that, of course, you're just looking for juicy premium. Let me know if you see some....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #498
  • Jan 3, 2017 9:48pm Jan 3, 2017 9:48pm
Quoting The Fool
If you entered a spot E/U long or short at the b/e point of the FXE IC shown, the spot trade would gain closely to the losing slope of the IC. You could close the two at the same time for a near wash, while the other end of the IC would remain safe and the original profit there intact. This is a way to make a risk-free trade.....
what could go wrong? you have the spot long set at the b/e and the u/l price shoots out there and trips it well before expiry and then reverses.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #499
  • Jan 3, 2017 10:56pm Jan 3, 2017 10:56pm
Quoting The Fool
what could go wrong? you have the spot long set at the b/e and the u/l price shoots out there and trips it well before expiry and then reverses.....
...the answer there would be to oversize the spot hedge - identify the max loss of the condor on each end and take profit on the spot trade as soon as it reached or surpassed that value....then wait - with some luck you might come out a little (or even a lot) ahead on the tricky end.

...sorry buddy, I will illustrate this over at LTO when I get into some premium worth selling somewhere.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #500
  • Edited Jan 4, 2017 7:11am Jan 3, 2017 11:05pm | Edited Jan 4, 2017 7:11am
Quoting The Fool
{quote}...the answer there would be to oversize the spot hedge - identify the max loss of the condor on each end and take profit on the spot trade as soon as it reached or surpassed that value....then wait - with some luck you might come out a little (or even a lot) ahead on the tricky end. ...sorry buddy, I will illustrate this over at LTO when I get into some premium worth selling somewhere.
Dang. Now you gonna make me think ... . Lol. Thinking it's kinda sorta like a corn/beans futures options hedge on a fixed price corn/beans contract (although those are mostly commonly done on "one end" of things for downside risk pro).
Fireworks are fun ... as long as you don't blow your fingers off.
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