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Let's Trade Options

  • #4,461
  • Aug 15, 2014 10:54am Aug 15, 2014 10:54am
Quoting StrayDog
{quote} How shit allways happens when market is at resistance... NQ was 3996... {image}
Hello Opportunity! Selling PUTs!
  • #4,462
  • Aug 15, 2014 11:32am Aug 15, 2014 11:32am
Quoting StrayDog
VIX is surging up.... just a minute ago I was considering that bullish put spread on UVXY... the one that TF did.
I did another one this morning when the market was up, UVXY 9/20 $18/$20 for $0.72 credit. That's looking good and the 9/20 $20/$22 is back at break-even. 17% spread on UVXY today so far...

Wish I had more free margin, maxed out and will have to wait til Monday....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,463
  • Aug 15, 2014 12:12pm Aug 15, 2014 12:12pm
One for you TF - I recall you like to know where the big money is flowing.....

http://blogs.marketwatch.com/need-to...500/?link=sfmw
  • #4,464
  • Aug 15, 2014 12:25pm Aug 15, 2014 12:25pm
Quoting njr
One for you TF - I recall you like to know where the big money is flowing..... http://blogs.marketwatch.com/need-to...500/?link=sfmw
Yeah, George okayed that with me.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,465
  • Aug 15, 2014 12:30pm Aug 15, 2014 12:30pm
Quoting The Fool
{quote} Yeah, George okayed that with me.
Good to know you are his right hand man I'm sure he could spare a few million for some of his buddies
  • #4,466
  • Edited 11:09pm Aug 15, 2014 10:08pm | Edited 11:09pm
GLD at $125-6 right in the middle of range it's been in since the Spring. I might like me a 9/20 or 9/26 IC with short legs out like $131 & $122...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2014-08-15_gld.png Size: 73 KB
Click to Enlarge Name: 2014-08-15_gld_001.png Size: 264 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,467
  • Aug 16, 2014 12:39am Aug 16, 2014 12:39am
I have been watching a lot of tastytrade content this week. That's really a great free site.

One thing I have seen on their ToS charts is an IV Rank study. Do any of you know where they get that? I can't find it in the ToS chart studies....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,468
  • Aug 16, 2014 1:19am Aug 16, 2014 1:19am
Quoting The Fool
I have been watching a lot of tastytrade content this week. That's really a great free site. One thing I have seen on their ToS charts is an IV Rank study. Do any of you know where they get that? I can't find it in the ToS chart studies....
oh I see, it was there as iv percentile...


Inserted Video
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,469
  • Aug 16, 2014 2:37am Aug 16, 2014 2:37am
Quoting The Fool
{quote} oh I see, it was there as iv percentile... https://www.youtube.com/watch?v=UZus3naPTEU
Careful with those TT videos, you might be persuaded to become an options seller only

Yeah, it's a pretty amazing website and it is totally free. It's a great concept and they all do an amazing job - I have personally learnt a lot with their educational stuff, studies, etc, etc.
  • #4,470
  • Aug 16, 2014 10:04am Aug 16, 2014 10:04am
Quoting The Fool
{quote} oh I see, it was there as iv percentile... https://www.youtube.com/watch?v=UZus3naPTEU
actually, I still have not found it. The IV rank study I want is shown at the bottom of the IWM chart from the 8/15 "Back to Cool" show...
Attached Image (click to enlarge)
Click to Enlarge Name: 2014-08-16_TTIVRANK.png Size: 925 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,471
  • Aug 16, 2014 10:24am Aug 16, 2014 10:24am
easy enough to add the IV overlay, though. I'm looking at IWM because I think it's got some good upside. One thing I note from the chart is that long volatility plays made money all last year, i.e., buying calls at or just after every significant spike in iv would have made big money. Say, any spike above iv=0.22...
Attached Image (click to enlarge)
Click to Enlarge Name: 2014-08-16_iwmiv.png Size: 126 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,472
  • Aug 16, 2014 11:22am Aug 16, 2014 11:22am
HD reports 8/19
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,473
  • Aug 16, 2014 3:25pm Aug 16, 2014 3:25pm
Hi TF

You can copy/paste/save the following codes under the"New" tab under studies on TOS platform. That will display IV% on the chart.
------------------------------------------------------------------------------------------------
plot Data = close;
declare upper;
input period = AggregationPeriod.DAY ;
#hint period: time period to use for aggregating implied volatility.
input length =252 ;
#hint length: #bars to use in implied volatility calculation.
def ivGapHi = if isnan(imp_volatility(period=period)) then 99999999999 else imp_volatility(period=period);
def ivGapLo = if isnan(imp_volatility(period=period)) then -99999999999 else imp_volatility(period=period);
def periodHigh = highest( ivGapLo,length=length);
def periodLow = lowest( ivGapHi, length=length);
def ivRange = periodHigh - periodLow ;
def ivp = round( 100*(imp_volatility(period=period) - periodLow)/ivRange, 0);
AddLabel(1, Concat("IV%: ", ivp), color = CreateColor(255-(ivp*2.55),ivp*2.55,0));
--------------------------------------------------------------------------------------------------------
Thank you for your wonderful work.

With regards,

Pramod
  • #4,474
  • Aug 16, 2014 4:40pm Aug 16, 2014 4:40pm
Quoting gupta_pramod
Hi TF You can copy/paste/save the following codes
Thanks, Pramod! I will try it.

I wish I had dived into ToS from the getgo....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,475
  • Aug 17, 2014 1:06am Aug 17, 2014 1:06am
Quoting The Fool
{quote} Thanks, Pramod! I will try it. I wish I had dived into ToS from the getgo....
No offense, Pramod, but I found an iv_rank script that I like better and you may find it here:

http://pastebin.com/0Vumd8Gt

the IWM chart below shows the iv_with_ivrank study...
Attached Image (click to enlarge)
Click to Enlarge Name: 2014-08-16_iwm.png Size: 133 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,476
  • Aug 17, 2014 1:22am Aug 17, 2014 1:22am
Quoting The Fool
I'm looking at IWM because I think it's got some good upside. One thing I note from the chart is that long volatility plays made money all last year, i.e., buying calls at or just after every significant spike in iv would have made big money....
or, maybe more better, selling puts....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,477
  • Aug 17, 2014 3:38am Aug 17, 2014 3:38am
Is anyone using OptionVue/OptionsNet Explorer or any other options backtesting sw?
Do you backtest? I think that would accelerate my trading skills vs trading papermoney only.

i would like to spend minimum amount on extra sw, and acomplish two things: better options analytics/risk graphs etc, and at the same time get simpler and more intuitive trading platform for IB.

what do you guys use?

TF which platform is that colorful screenshot from (one with red and green big arrows?)

is anyone using any other trading platform with IB? What is most optimal?
esignal, tradestation, ... ?

i loved ToS platform, but they stopped serving international clients.... So move to IB was move to most optimal comissions and fees, but i dont like their platform as i find it too complicated and rough around the edges...

-W
  • #4,478
  • Aug 17, 2014 10:33am Aug 17, 2014 10:33am
Quoting weirdgod
Is anyone using OptionVue/OptionsNet Explorer or any other options backtesting sw? Do you backtest? I think that would accelerate my trading skills vs trading papermoney only. i would like to spend minimum amount on extra sw, and acomplish two things: better options analytics/risk graphs etc, and at the same time get simpler and more intuitive trading platform for IB. what do you guys use? TF which platform is that colorful screenshot from (one with red and green big arrows?) is anyone using any other trading platform with IB? What is most optimal?...
hi weirdgod,

I did not know TD Ameritrade had nixed accounts from non-US citizens, if that's true that's sad because ToS has the best options trading platform I have seen, including thinkback and thinkondemand for backtesting.

If you have some Excel/VBA skills you might look into making your own analytical tools. That's what I am doing with the help of the Hoadley options plug-ins for Excel, which are just $150 +/-. To do backtesting, you will need back data, and that is available from IB, but it's a little glitchy in my experience. You might have better luck with back data purchased from a vendor or data feed service, like iVolatility or DTN IQFeed.

The screenshot I think you refer to is from dough.com - that's free - it's a simple platform made by the same guys who made ToS and now run tastytrade.com. You might be able to use dough with an IB account - it does integrate with TDAmeritrade accounts, and that is what they kind of push - but maybe dough works with other broker accounts, too, I'm not sure.

I don't like IB TWS either, I just got to the point where I can enter/manage orders and that's all I do....

Hope the above is helpful & good luck.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,479
  • Aug 17, 2014 3:38pm Aug 17, 2014 3:38pm
Quoting The Fool
{quote} If you have some Excel/VBA skills you might look into making your own analytical tools. That's what I am doing with the help of the Hoadley options plug-ins for Excel, which are just $150 +/-.

Setting up your own modeling tools and using a cheap data provider like Stockwatch is maybe the best way to go for us poor traders.

http://www.hoadley.net/options/devel...din.htm#quotes

http://www.stockwatch.com/
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,480
  • Aug 17, 2014 11:36pm Aug 17, 2014 11:36pm
How much can a good options trader make? Just trading his own money, always looking for safe trades, consistently using rigorous money management? 20% per year? 50% per year? 100%? When I was trying to get rich fx scalping I had a thread here called "4% a Day Forever". That was phun. Now I would love to be able to get a reliable 4% per month!

The spreadsheet attached below shows the results, starting from $40k, which is about what I have in my largest IRA. 4% per month from $40k gets to $1 mio in 7 years: @ 5% per month, in 5.5 years....@ 5% per month you see $13 mio in 10 years! I love spreadsheets! Even just 2.5% per month will get you to $750k from 40k in 10 years...etc, etc.

I know, I know, what you may be able to do in a $50k account is likely a lot different than what you may do in a $500k or $5 mio account. Still, one needs to have goals. Do you keep a trading plan? I am revamping mine. Setting a long-term goal something like the above is what I need to do now.

Heretofore my options trading results have been erratic. Double digit gains one month & double digit losses the next. But I can see how it will be possible to change that now. I can see that it will be possible to make consistent gains. But I still don't have a feel for what those gains may be, expressed as above. What do you think?

What's the best way to make consistent gains? Selling premium ala Karen SuperTrader style? Trading the weeklies?

Anybody with any opinions, please chime in....
Attached File(s)
File Type: xlsx 4percentpermonth.xlsx   14 KB | 450 downloads
"If The Fool persists in his Folly he will become wise." - William Blake
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