SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

All Activity

This stream auto-updates     

  1. Past hour
  2. I believe IB has intraday options spreads charts where you can plot the mids of calendars etc. Is that possible on ThinkOrSwim or on TastyTrade? Thank you.
  3. Yesterday
  4. Tradier Brokerage Special Offer

    Hi Craig, take a look at my experience with TOS today regarding not getting filled on ULTA after Kim got filled 5c below an order I had sitting there since the open:
  5. Tradier Brokerage Special Offer

    Ok, thanks to both for clearing that part up. So does anyone think the Smart Routing is the reason for the good fills, or no?
  6. Tradier Brokerage Special Offer

    @craigsmithOne thing to consider is how IB displays the mid. It is the mid of the spread, while Tradier and TOS display the mid based on the individual legs. In this example, the mid of the Jun15 calls is 8.25 and mid of Jun08 calls is 7.65, and the real mid is 0.60 not 0.68.
  7. Tradier Brokerage Special Offer

    Actually, this is the result in IB not using true mids. They have a very convoluted way of choosing either the last, ask or bid (depending upon where the underlying is trading) and posting it to mark the mid. It's completely inaccurate and has nothing to do with routing.
  8. Tradier Brokerage Special Offer

    I run Tradier, IB and TOS all using live data. I will only trade one candidate on one specific platform, so I never have the same data pulled up on all platforms. Over the past few days I've been comparing the pricing data and noticed there are differences in price. Tradier and TOS will report the same bid/ask/mid, but IB is usually way off from those numbers. I think what we're looking at here is IB is using a very sophisticated method in their Smart Routing that gives anyone trading there a BIG edge. Screenshots from Tradier, TOS, and IB for AVGO show these price differences. These screenshots were all taken within 15 seconds of each other around 1:40 Eastern time. Given this, I'm really considering moving all of my trading back to IB. The low commission costs at Tradier do me no good if I can't even get in the trade.
  9. Last week
  10. A “normal” Anchor portfolio uses about 90% of its available cash to purchase long equities, most commonly ETFs. The other 10% is used to purchase the hedge. This means, even if the strategy performs “perfectly” by paying off the hedge, in the best case scenario, it will still lag the market by at least ten percent – and we all know perfect performance is unlikely. In other words, if the market goes up 20%, Anchor will, at absolute most, go up 18% -- prior to accounting for the cost of the hedge. By replacing the ETFs with a combination of ETFs and long dated deep in the money call options we can increase performance without greatly impacting risk. Let’s take an example $100,000.00 portfolio and assume SPY is currently trading at 266.92, the end of value on the day this post was written. Using the June 21, 2019 options, a “normal” Anchor portfolio could look like: Long 6 June 21, 2019 265 Puts $16/contract ($9,600) Short 2 May 25, 2018 268.5 Put $3.34/contract $668 Long 340 shares of SPY[1] $266.92/share ($90,752.80) Left over cash $315.20 [1] SPY is being used for simplicity sake, one could just as easily use the standard blend of SDY, VIG, and RSP But what if we instead bought calls and constructed the portfolio as follows: Long 8 June 21, 2019 265 Puts $16/contract ($12,800) Short 3 May 25, 2018 286.5 Puts $3.34/contract $1,002 Long 4 June 21 2019 150 Calls $117.56/contract ($47,024) Long 100 shares of SPY $266.92/share ($26,692) Left over cash $14,486 In this case we’re essentially long an extra 47% when compared to the “normal” Anchor portfolio and have left over cash we can invest in a low paying instrument (such as BIL), yielding approximately 1.5%. The four long calls each control 100 shares, which totals 500 shares under control as opposed to only 340 shares in the “normal” Anchor model. Looking at the possible scenarios in June 2019: Now the above analysis assumes that the hedge is exactly fully paid for and that all other variables have remained the same. This assumption means we would have collected exactly $0.80.week each week – and we know that is impossible – but it still a useful analysis. The reason that the further down SPY drops, the more money “normal” Anchor makes is with our 4 long puts we are slightly over-hedged, which profits on the down side. The Leveraged portfolio is perfectly hedged. Looking at the above it is very easy to see that Anchor and the Leveraged version perform the same in down conditions but the leveraged version vastly outperforms in up markets. This only makes sense as it is a leveraged product that is still fully hedged on the downside. This doesn’t tell the whole story though – for two reasons. The first is beneficial to the leveraged version. The above model assumes a delta of one as the price of SPY drops. However, that is never the case. As the price of SPY gets closer and closer to the 150 strike, delta will go down (and volatility likely will be increasing during this time as well). As delta goes down, the long calls won’t lose dollar for dollar, as a pure long position would. This means that the above values are actually understated. The Leveraged version should outperform in down markets as well. It outperforms in flat markets due to the interest gained on the extra $14,486 cash. It would seem then that the Leveraged version is vastly superior and should always be used – and if the paying off the hedged worked perfectly, then that would be the case. But as any Anchor trader knows, paying off the hedge is always the most difficult task – particularly in large bull markets which require the hedge to be rolled several times. Because the leveraged version has more short puts, when the market goes down, those short positions are going to lose at a higher clip. Similarly, when we have to roll the long hedge, we will lose more rolling. In other words the risk increases. Is the risk worth the potential gains? That depends on both market conditions and each individual investor’s preferences. The Leveraged version is also not tax efficient. With a normal Anchor account, you hold the long ETF positions until you need to liquidate - which could be decades. The only real tax impact is from the option positions, which could easily be negative on a year the markets are up. On the other hand, the leveraged version will realize gains every year as the long calls are bought and sold - leading to tax inefficiencies. Depending on your tax bracket and situation, this could have an impact on choosing one or the other. Starting in June, we're going to start tracking a leveraged version of the Anchor portfolio for subscribers, which can also be professionally managed through Lorintine Capital. Feel free to email Chris at cwelsh@lorintine.com with any questions. Christopher Welsh is a licensed investment advisor in the State of Texas and is the president of an investment firm, Lorintine Capital, LP which is a general partner of three separate private funds. He is also an attorney practicing in Dallas, Texas. Chris has been practicing since 2006 and is a CERTIFIED FINANCIAL PLANNER™. Working with a CFP® professional represents the highest standard of financial planning advice. He offers investment advice to his clients, both in the law practice and outside of it. Chris has a Bachelor of Science in Economics, a Bachelor of Science in Computer Science from Texas A&M University, and a law degree from Southern Methodist University. Chris manages the Anchor Trades portfolio, the Steady Options Fund, and oversees Lorintine Capital's distressed real estate debt fund.
  11. Tradier Brokerage Special Offer

    Just signed up for tradier and was planning to opt for tradehawk. The signup page can take a promo code. Anyone has any idea what a promo code could do?
  12. Thanks for your comments @Yowster. Let me add that depending on how you generate this, it will be much easier with actual dates rather than T-x points. This goes back to my earlier request on showing the dates which I posted earlier.
  13. I've always done this comparison visually - see my FDX post earlier that shows different rates of RV decline based on what point in time you are at, so for some stocks certain periods of time are better than others for the hedged straddle trade to be on. Doing what @Rob mentioned would be a little more precise with actual slope numbers.
  14. Maybe @Yowster can chime in on this idea since the hedged straddle is his baby, but perhaps some kind of formula where once earnings is announced, the software can pick 2 points on the chart where it slopes the least and have a certain amount of days in between so that you can opt to hedge it with a strangle and have the time to collect the 6% suggested average.
  15. Clicking 2 points on the chart would be optimal (if the capability is available), if not, any manual entry would be fine. Thanks.
  16. Ok noted. Not sure if it's possible with the chart library i'm using. Another way to represent that would be a 2D matrix there in X you have the entry, in Y the exit, and in the matrix it will show the slope between the entry X and exit Y.
  17. Hello DJTUX, I'd like to make a request: I'd like to be able to measure the degree of slope between 2 T-N points on the chart. That will help me choose some points along the graph where I may want to create a hedged straddle where the degree of slope is less in comparison to other points on the chart. Thank you, Rob.
  18. Tradier Brokerage Special Offer

    Tradier is having issues today, I've got the same thing going on with orders that were filled, but show as 0.00, and the balances were messed up as well.
  19. Tradier Brokerage Special Offer

    Thanks @Noah Katz. Luckily I was able to cancel and re-submit cleanly. Hopefully they fix this as they say.
  20. Tradier Brokerage Special Offer

    Same, here, but the problem is at Tradier. I had an order to close my LOW position, showed partial fills that weren't; cancelled and resubmitted, filled, but partial fill couldn't be cancelled. I called Tradier and they said there was some issue that they would manually clean up for me. Also cash available and total acct value were wacky. Joe said that would be fixed by tomoorw, not sure if they need to fix everyone's issues individually.
  21. Tradier Brokerage Special Offer

    I have seen that variation as well, but today the order is not filled. It's just in limbo. Oh well.
  22. Tradier Brokerage Special Offer

    I think the problem is not with the tool, it happened to me also today. I called the rep to fix it. if the price gets stuck during the amendment, most probably the FILL has already happened but the update didn't kick off. i saw this kind of issue last week as well.
  23. Tradier Brokerage Special Offer

    Is anyone having trouble with order amends using TradeHawk (with Tradier)? I am trying to modify the price and after I click send, nothing happens. No rejects and of course the amend does not happen. This issue started after I installed the latest release from TradeHawk. I was able to cancel and enter the new order.
  24. Tradier Brokerage Special Offer

    in today's tradehawk release Wisp Fixed current expiration highlight. Spreads from ticket show on strike column. Spread legs can move (Left click to change a leg, left click again to set it). Spread can move (Right click on any leg of a spread; mouse over to new spot on strike column, left click to set). Spread Ticket Added Ratio and Cost (shows how many spreads will be sent out total) Spread name now clears when the legs are cleared. Fixed price update delay when selecting the follow mid/bid/ask function. Option Ticket Fixed price update delay when selecting the follow mid/bid/ask function. Options Menu Calculator. Use what-if buttons to populate the calculator change stock price, volatility, interest rates, date to see the effects on a spread or simple option) Chart New indicators. MOBO Fibonacci (left click to set start point, right click to set end point. Retracements shown on chart) Risk Portfolio Roll up of cost. Right click on positions to exit. Right click on expiration to view and exit potential spreads. Right click on underling to view and exit calendar spreads
  25. Bond Futues on IB

    ZB ?
  26. Bond Futues on IB

    Good morning, Does anyone know what Market Data to select to get the Bond Futures information for trading the 30 year US Bond? Thanks RF
  27. Directional trades using Collar

    We will scale up and then move on to UVXY after it’s next reverse split which should occur in the fall.
  28. Directional trades using Collar

    With vxx trading lower, when is there a point where we have to move on because not enough premium on the short put and gain on the long put is earned? Or would you just scale the trade up to do more of them? Thank you for your advice
  1. Load more activity