Option Master Enhancements For Complex Position Management
I am an option trader based outside the US & hence, have no access to the ThinkorSwim (TOS) platform which has a decent analytics for trading options. PTMC has very good trading analytics and the options module is good, however, a few more added features will make it even better.So here are my list of features for the Option Master: Order Entry For Strategies : Be able to build orders from the Option Matrix. As the orders are being built they are automatically linked to a strategy that reflects the strikes being selected. i.e , +1 /-2/ + 1 will default to a butterfly strategy, 1+, -1, -1, +1, an Iron Condor Strategy. Also features such as Drag & Drop for the option matrix will help. Displaying Multiple Option Chains With Different Days To Expiry on the Same Page : This feature makes it easier to build calendars. Allow Multiple Orders to be built - Building multiple order on the same page for comparison, i,e. trying to buy an SPX put butterfly, you may want to also build an order for the synthetics of the fly to get an idea of what the fair price may be. Modify An Order - Having built the order, be able to change the strikes, Days To Expiry and Option type (puts to calls & vice versa)--having a drop down against the strategy attributes should easily achieve this (See TOS as an example) Account Setup - Be able to setup accounts linked to your live brokerage account & a trading account for demo/paper accounts. Track Correct Profit & Loss - Be able to track the correct P& of an option position when the trade is still open. For example, if I buy 10 SPX put Butterflys & then close some veritcals (debit or credit spreads) from the butterfly, I want to be able to track my true P&L after taking into account the P&L on the closed verticals.Basically including realized P&L in the overall P&L of the open trade. Most platforms are not able to do this properly. Plot Riskgraphs with different Days To Expiry - If I put together a strategy which involves an buying RUT butterfly with 45 days to expiry and a Deep In The Money Call with 10 days to expiry, the riskgraph will be plotted based on the nearest expiry, i.e the ITM call expiring in 10 days, this a not so clear risk graph, the solution is to give the choice to be able to select which expiry to use for plotting the risk graph. I’m sure I can think of more features, but the ones mentioned will help option traders who trade complex positions be able to use the platform effectively.
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Topol Artem 12.07.2017Hello mdurojave, than you for your feedback.
1.Order Entry For Strategies - this feature is already in development
2.Displaying Multiple Option Chains With Different Days To Expiry on the on the Same Page - we already have it, you can change view in OptionMaster settings screen.
3. Allow Multiple Orders to be built - if I understood you correctly you would like to compare prices of synthetic butterfly(built from particular option strikes) and predefined butterfly, yes?
4. Modify An Order - we already have it, but provide not for all columns, thank you for feedback we will think how to make it more flexible
5. Account Setup - it depends on brokers API, your example regards to IB brokerage as I know they provide demo account linked to real one. PTMC does not use our own servers we directly connect to broker's servers
6. Track Correct Profit & Loss - I explain you our existing logic. For example in some moment of time you opened 10SPX put butterfly, you hold this position for few days and then decide to close some part of it. In this case OptionMaster analyser will rerpesent pnl only for opened part, closed part's PnL you can track in Trades and OrderHistory panels. Opened part PnL will be correct.
7. Plot Riskgraphs with different Days To Expiry - it is clear for me I will think about, thank you for feedback
Also, I would like to add few words about our future plans regarding Option Master. In our next releases we will add possibility to built 3D volatility surface for more comprehensive view of IV structure. Another powerful feature that we will add in future is custom IV smile. For example, you have your own opinion about IV structure for some particular option serie, we will provide you the possibility to plot your own custom volatility smile and then reconstruct all option's serie parameters(reconctruct option chain for set IV smile) option's prices, all greeks... and compare your option chain(built from you own volatility smile) and current market option series. In this case you can predict IV then get correct option prices and analyse overbought/oversold strikes.If you have some free time, we could arrange a skype call and discuss your ideas may be some of them we will add to our scheduled development plan.
Best regards, Artem Topol
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mdurojaye 13.07.2017
Hi Artem,
Thanks for your response to my request for additional features.
3. Allow Multiple Orders to be built - if I understood you correctly you would like to compare prices of synthetic butterfly(built from particular option strikes) and predefined butterfly, yes?
Yes, basically its being having multiple orders on the same page & one reason why I may want to do that is to be able to determine a fair price for the strategy. If you trade an SPX fly the spread between the bid & ask can sometimes be very wide like $5+, so having multiple SPX flys with different strikes, you will get an idea of what the true mid fair price is likely to be. So, using it for price discovery on instruments with very wide bid, ask spreads.
6. Track Correct Profit & Loss - I explain you our existing logic. For example in some moment of time you opened 10SPX put butterfly, you hold this position for few days and then decide to close some part of it. In this case OptionMaster analyser will rerpesent pnl only for opened part, closed part's PnL you can track in Trades and OrderHistory panels. Opened part PnL will be correct.
Accounting for realised P&L is very important for option traders that trade complex positions, trying to look in the trade & order history panel to help figure out your true P&L is very cumbersome. If you have multiple positions in the same asset with different times to expiry, it become very difficult to monitor your true P&L. For monitoring my true P&L on an option positions I cant use IB, I have to use other applications like Optionvue or OptionWorkshop.
I am free this friday between 4 to 5:30pm UK time, if you want to discuss further.Regards,
Michael.
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