Comments for TradersResearchInstitute.com

Comment on SPY – Ascending Triangle (analysis) by Buy Cheap software

Buy Cheap software — Wed, 04 Jan 2012 12:35:04 +0000

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Comment on Broken Wing Trade & Adjustment Explained by Owen

Owen — Mon, 10 Oct 2011 02:13:50 +0000

Hi Rob,
The TOS platform routes all orders, by default, as limit orders. There are days when I route a BWB and it works all day without being filled, but I always route at the mid-point using limit orders.
Owen

Comment on Broken Wing Trade & Adjustment Explained by rob

rob — Mon, 10 Oct 2011 01:35:34 +0000

Very interesting & educational video Owen. I see you use TOS. I have paper traded BWB with TOS for a little bit but I haven’t used any real money yet. I know that TOS always uses the mark prices on these option spreads. In your experience in trading real money with TOS, if you place limit orders at the mark do you always get filled, or is using the mark price just an unrealistic fantasy? Please advise. Thanks.

Comment on GLD – September Expiration – Call & Put Butterflies by Alton

Alton — Tue, 09 Aug 2011 05:43:48 +0000

I have question about BWB.
1) how many days you go out in time to put on a trade?
2) what happens if the GTC order is not filled and price going pass your short strike.

Comment on Broken Wing Butterfly – Live Trade by Home & Content Insurance

Home & Content Insurance — Mon, 13 Jun 2011 20:02:16 +0000

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Comment on About by Serge

Serge — Tue, 24 May 2011 21:09:27 +0000

Hi Owen,
Your postings showing BWB trades are very captivating.
I have started simulating them with TOS ‘OnDemand’, just to get familiar with BWB and its adjustments
Can you kindly advise me where can I learn practical methods to:
— adjust BWB position when the market moves against its direction right from the start (is that possible instead of just liquidating it with a loss?)
— build-up position with additional butterflies, locking new gains to elevate the P/L such as in your video ‘Broken Wing Butterfly – Live Trade’ on Mar15 2010
Thank you and best regards,
Serge

Comment on IWM Position Built using Credit Spreads by Owen

Owen — Tue, 24 May 2011 13:55:24 +0000

Hi Steve,

You have probably figured out that the TOS platform will show you an obscure profit amount in this particular case. Essentially, what you have done is execute a trade, then subsequently a second trade which has generated a loss, or more accurately, locked in a loss, at execution. However, according to the remaining positions, the platform shows a profit.

The easiest way to think of it is like this: The software doesn’t keep a history of your trades on the Monitor page. The Monitor page only knows and shows current open positions and considers only what you originally traded them for and what they are worth at this moment in time. Any legs that have been bought and sold in an effort to realize a current position are not considered.

It works this way with BWB trades. When a BWB trade is locked in (the embedded vertical trade is executed and the butterfly becomes symmetrical) the trade will show a profit. A false profit. The Monitor page is only considering the current position, not how the position was ultimately achieved.

Owen

Comment on GLD – September Expiration – Call & Put Butterflies by Owen

Owen — Tue, 24 May 2011 13:43:07 +0000

Hi Miguel,

After the initial trade fills, route a GTC to buy back the embedded. Of course, this order will sit for days, weeks, or even months before the market moves enough to fill. By routing your orders, to buy back and lock in, right after your BWB fills, it also will give you a better sense of the overall trade when you view it on the Analyze Page (if you are using the Thinkorswim platform).

Hope that helps. Remember to always Control Risk First!

Make it a Great Day!
Owen

Comment on GLD – September Expiration – Call & Put Butterflies by miguel

miguel — Wed, 11 May 2011 02:59:15 +0000

Question:
After placing the BWB do you inmediately place the embeded or you just wait to move in your favor?

Thanks.

Comment on IWM Position Built using Credit Spreads by Steve McA

Steve McA — Sat, 23 Apr 2011 19:39:52 +0000

This is not related to the post but I’m hoping some reading this might have some input.

I’ll try to keep this simple. I put on a spread one day and then put on another spread the next day… accidently washing out one leg. At first I thought I had made a big mistake. However, my Thinkorswim analysis graph and my open profits show that I made a $500 “profitable goof”. The problem is that I don’t understand what I did, so that I can do it again.

1st trade April 20th.

Sell 1 AEQ Jun 330 Put @ 42.85
Buy 1 AEQ Jun 320 Put @ 37.25

Credit of $5.60

2nd trade April 21st. (AEQ is up and I just wanted to add to my position. I didn’t realize I was closing out the 320 put)

Sell 1 AEQ Jun 320 Put @ 32.75
Buy 1 AEQ Jun 315 Put @ 30.50

Credit of $2.25

Total credit of $7.85

This new trade increased the spread from 10 pts to 15 pts.
—————————————————————————————————————–

My analysis chart on the first trade showed the following right after the trade.

Max Profit $5.60
Max Loss $4.40

However, after I made the second trade my “Open Profits” jumped up about $500 (I don’t understand why because I actually “lost” $4.45 by selling the 320 put at a loss, bought at $37.25 and sold it for $32.75).

Also, my analysis chart is much improved and shows the following.

Max Profit $1235
Max Loss $ 235

Why did my new position come out so much better than the old one? I didn’t intend to wash out the 320 put, that was accidental.

Thanks,
Steve McA