I see that you use Tradestation for trading options. How do you find it in terms of flexibility with making rapid changes to existing orders? I am looking for an options trading platform where I can adjust my oco orders in real time and update them quickly. So, if I want to change my stops and targets quickly, I just update the fields without canceling my current order, hit submit and it's done and the order is updated. It should also be capable of complex oco orders. So, if I have 10 contracts on a trade, I can set it to sell 5 at my first target which will then automatically trigger a new target/stop order for the remaining 5. This is for fast day trades. ThinkorSwim does this but their software crashes continuously for me. Anyone know of any other good alternatives?
The following user says Thank You to gtrader for this post:
Check this out. They have a paper trade demo which works with different strategies. (Not sure how the datastream works.) I've only started so not too sure on all the features of their website/program...
With Interactive Brokers itís easy to have your trades on screen with live orders and change the Price to another you want to send, and when you want just click the update button.
Also make complex oco orders and even choose to use them as default.
IB is very cheat with options. The trick is that they charge you when you modify a live order. At this time I have calculated that my average cost is less than $0,80 for trading more than 1 thousand options. I trade an average of 5 options each time and modify 1 executed order every 2 trades.
I think is may be the best platform for execution and for available option liquidity, but you need something else for charting and also if you want to analyze greeks or complex strategy. TOS is the best relation quality/price for that. OptionVue is the more complete (and expensive).
Hope this help.
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Commissions depends on the exchange your order is send to (IB use a proprietary algo call SMART to choose the best exchange to fit your need -execution price). So each trade isÖ a "commision surprise!" I pay from 2 cents for 2 options on AAPL or GOOG to more than $1 other times. Thatís why I follow my average commission because each trade is different and not "commission representative".
Diagonal Spread Trading
For those interested in diagonal spread trading of options, here are two trades opened and closed this past week. When placed properly, there is little risk and neither ever went in the red.
CAG spread was purchased when price was at $27.95: bought $27 Jan calls and sold $28 Dec calls for only .79 and sold for 25% gain in two days.
CMCSA spread was purchased when price was at $36.36: bought $36 Jan calls and sold $37 Dec calls for only .79 and sold for 12% gain in three days.
One can easily make several hundred dollars per month on similar trades month after month.
The following 3 users say Thank You to ESFXtrader for this post:
As for making rapid changes in Trade Station Platform, I only wish it were possible for spread trades. It is easy for single option trades, but spreads must be cancelled and reopened at the new desired price, which can be time consuming, although, I do have it down where I can get it done quickly when needed. I have never had TS crash in all my years of trading.
The following user says Thank You to ESFXtrader for this post:
Do you buy Jan calls and sell Dec calls at the same time or buy today and sell tomorrow? Because in the beginning of your thread I read that you buy call option and later sell call option.
What you mean by "When placed properly"? What would you recommend to look at when placing a trade?
Please recommend inexpensive stock options having enough action and good spreads during a day. I mean cheap stocks in a price range of $10-$20 so that ITM call/put options would cost about $0.50 - $1 but having the same trading power like expensive stocks - Google, etc with good volume, good spreads and so on.
Hey zeller4, I am trying demo of their trading platform. Looks not bad. Though read bad reviews about their customer service. Also planning to try OptionsExpress.
The following user says Thank You to Chipmunk for this post:
ESFXtrader, thank you for being so generous in sharing this very nice system!
I've set up my TOS charts ( simplified, however) and I just wanted to check in if what I'm doing is right.
1. If the trend is UP, I buy an ITM call option on a further-out month;
2. Then, I can either do a simultaneous or leg in to an OTM or ATM call option on the front month;
3. If trend is DOWN, I do the reverse by buying/selling puts;
4. The position of the 20EMA vs the 20SMA determines whether the trend is UP or DOWN;
5. The CCI -45/45 triggers/confirms the trade.
Question 1: what adjustments and how does one make the adjustment in case the market goes the opposite way?
Buy back what I sold and sell another OTM?
I realize that, by careful and judicious money/risk management, losses can be minimized. However, to complete the trading of this system, which I like very much, I just wanted a "what if " scenario as a way of putting my mind at ease.
Question 2: How many days to expiration would still allow me to enter the trade?
The following user says Thank You to Lepanto for this post: