ivylanthier

Since beginning to trade the Steady Options (SO) Alerts there have been 54 trades in the model SO portfolio for a net equity gain of 44.96%. My parallel portfolio had net gain of 26.32% (a discrepancy of -18.44%. 25% of the discrepancy is explained by 8 non-SO trades I took with 5 winners and 3 losers but the 3 losers wiped out the gains on the winners. The remaining 75% of my underperformance is explained by the following: I managed to gain entry and participate in all but 1 of the LOSING SO trades. BUT I was not able to enter 39% of the WINNING SO trades because the entry prices "ran away" from me after the SO alert. All of the failed entries were on earnings trades of individual stocks. Statistically, if I got a good entry price immediately this signaled that the trade was likely to be a loser. If I was unable to get a good entry price (within 1% of official alert entry) it was likely to be a winning trade. Once in a trade I outperformed the SO trades by having better exits. I had slightly smaller average losses on the losing trades and slightly higher gains on the winning trades. On the pairs trades I did consistently better on every trade. The challenge, therefore, is to not have to wait for the SO alerts, particularly in stocks where the targeted strike prices have low liquidity. Be quick on entry for earnings trades and patient to enter on non-earnings trades.

Thanks for the trade, yowster. Out today at 24% gain.

For example in FDX straddle trade adjustments recently: What confused me a bit was (although you were "buying" the bear call spread in combo trader for a credit) your screenshot of your trade log shows that you SLD the spread for a positive number (i.e. 1.30 for calls adjustment in the FDX straddle).

Thanks so much. I went back in SO history and found the topic discussed a great deal in 2012 and that has also helped. So, we have to buy to open the IC for credit, negative number. Can one sell to open other short positions like bear call spreads for when we are adjusting positions?

Kim, perhaps you could help with this. In IB, TWS papertrading, when I attempt to sell to open a short combination such as Iron Condor the order always defaults to a Buy (to open) order for a credit. This is true whether I use the Strategy Builder or the Options/Combinations menus and buld each leg from the option chain. I attempt to change the order to an order to sell to open for a credit, when the trade transmits in IB it reverses the legs of the spread and I end up with a long condor trade. I have spent a great deal of time with the technical assistance folks at IB but they tell me to try the methods that I have already told them don't work. I observed one of the IB trainers attempt to open the same trade unsuccessfully. How the heck do you open a short combination such as Iron Condor combination for a credit in IB?

Kim, are you submitting orders to IB from the ONE software or building the orders in IB? Makes a difference in affordability of ONE if we can do away with the data feed fees in IB to use towards purchase of ONE software.

Thanks for the help. Much appreciated. But i will try to get out at break even to reduce total risk to my account and free up margin for other trading. And look into an IB account.

I entered the VIX 16 Put calendar, May/July x 10 in Optionhouse for a total margin requirement of $9000. I simulated the same trade in TOS and got similar option requirement results. This would be closer to 100% of a 10K account. Am I missing something?