• Australian (ASX) Stock Market Forum

Tastyworks is coming

Discussion in 'Derivatives' started by Virge666, Jan 9, 2017.

  1. Virge666

    Virge666

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    dead set cannot wait...

    I had seen a few of you all posting and drinking from the Kool-Aid... I must admit that I have changed a few OF my habits based on their research... The main one being taking profits at 50%.

    So whom here is an Aussie tasty trader tragic. podcasts on the way to work and sometimes stupid enough to stay awake and watch the lads live.

    Personally... Since TOS kicked us all off their platform years ago... All I have had is IB to trade off and it is shot.

    Bring on tastyworks... $12k a year I don't have to give the IB guys.
     
  2. OmegaTrader

    OmegaTrader

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    Please explain what you are talking about??
    I am a beginner
     
  3. The Bear

    The Bear

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  4. OmegaTrader

    OmegaTrader

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    Please explain the excitement.

    What is so good abut this broker.

    A link is just their marketing. I can google that.
     
  5. Virge666

    Virge666

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    Easy,

    But you would have to be an option player to understand.

    Years ago a piece of software came out called ThinkorSwim, this piece of software was the oracle of options trading. Still is IMHO.

    The ASX regulators went into protection mode and kicked them out of the Aussie market in about 2008ish i think. They did this because the ASX regulator are dickheads and they were enjoying charging end users PER QUOTE at the time.

    So for the last decade, all of us option traders have been relegated to either paying $30 a side for an options trade in this country or going to a discount broker like IB or OptionsExpress to be able to make any income trades.

    Tastyworks will bring a TOS like platform back to the Aussie market, but here is the kicker, not only is is directly aimed at my style of trading which is premium selling BUT, commissions are US$1 per contract and US$0 for a closing trade.

    I make about 10-12 trades a day, work that out at about 6-10 bucks a side and you will be on the same page.

    THAT IS WHY I AM EXCITED !!! With this - i have added some serious cash to my bottom line each month.
     
  6. Warriortrader

    Warriortrader

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    Hi,

    Im new here but a long time Tastytrader. I am given to understand that Tastyworks will not be available to Australian Customers because of problems they are facing with their Clearing house. Its the same problem they have with Canada, Switzerland, Germany, etc.

    Mate, I was beyond excited too...but this news was devastating....sorry to bring this to you, but I thought you needed to know

    WT
     
  7. OmegaTrader

    OmegaTrader

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    Is it me or do these tasty peoples posts coming up out of nowhere seem suspicious???

    So at the moment say Commesec fees

    Internet (also charged upon exercise or assignment of the option)

    $34.95 up to $10,000 in premium 0.35% (above $10,000)

    Equity Option Contract (Open/Close) $0.13 (GST exclusive)

    Equity Option Contract (Exercise/Assignment) $0.05 (GST exclusive)

    Index Option Contract (Open/Close) $0.45 (GST exclusive)

    Index Option Contract (Exercise/Assignment) $0.35 (GST exclusive)


    So can you give me an example of what the difference would be on a $10,000 trade.

    For example on commsec index option:


    A $10,900 value, one way, to open or close:

    This is a close example trade

    With an expensive premium of $218 and 5 contracts in 10 lots (XJO Index ETO)

    commission was $34.63
    fees were $2.25
    +gst component 41.21
    Total was $38.09

    Total would be around $76.18 as you go both ways etc etc

    Tasty trades fees are $1 a contract and a $0.1 fee per contract???
    no closing fees

    So $5.5

    What happens if the contracts are relatively cheap?????

    Say if the contacts were $2.18 instead of $218.

    This would mean I would need 500 contracts which would cost

    $550 not $5.5

    Can you please explain what the savings would be in this example and alos in a $2.18 premium example.

    Also why would an option writer be trading 6-10 times a day.

    In your other post you stated that you write monthly options at 1% per month.

    Are you affiliated with tasty trade??


    Thanks
     
  8. Virge666

    Virge666

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    You sure...

    What references have you got... the last i heard was that we were good to go last week of January ?
     
  9. Virge666

    Virge666

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    Not affiliated with Tastytrade - been around a lot longer than they have - Dan Sheridan and Dan Kaufmann were my mentors when it came to option trading. The reason the posts have been popping up is due to the brokerage coming out here.

    Your examples above mean very little to me - sorry about that. I have been on IB since about 2007-8 so local shares and stocks just dont have the liquidity to do what i do.

    OK - So my aim is 3% a month, dont always hit it... sometime never get near it and sometimes have a drawdown... but the aim is about 3% a month on a six figure account. 2015 averaged 2.14% and December sucked. 2015 was a cracker year though.

    anyway.

    Lets have an example of 6 of the positions i have on now - I have a straddle on the QQQ, calendar on the SPY, Iron Fly on FXE, debit spread on EWW, straddle on GLD and covered puts on IWM. Usually use 20-30 deltas on each side 45 days out. I have a bunch of others... FB, XDA, FXY, RUT, XLI, XLU god knows what else. Also holding BHP, CBA, NAB and ANZ and AP for Australian stuff. anything that doesnt have a >15 cent spread in the option market which is pretty rare

    I leave them on and close at 50% of my max profit. or i roll them to the next month with 18 - 20 days to go. If the straddles or naked positions go against me - i just roll up or roll out to the next month. If it really goes against me - I will take the stock and sell more options against the position to convert into a covered PUT/CALL position.

    Rinse and repeat.

    I also have a larger position of stocks that i actively sell options against. I think Tastytraders call them a core position, but they are pretty much covered calls and covered puts. Most of my position is this kind of thing with about 20% being the option trades.

    as for trading 10-12 times a day - that is just how is works, you get the trades on and you aggressively take profits.

    the breakdown would be 50% core, 20% options, 30% cash.

    as for commissions. I pay about $6-12 a side for 5-10 contracts with IB. Tastyworks will half this.
     
  10. OmegaTrader

    OmegaTrader

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    You made 2.14% a month or a year??
     
  11. Virge666

    Virge666

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    A month and that was with the mess that was my account post election.

    I did not do well post election. I am happy to post you a month by month spreadsheet with percentages as long as there are no amounts. pretty sure i can convert it to percentage for you.
     
  12. OmegaTrader

    OmegaTrader

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    What is the risk/ volatility
     
  13. Warriortrader

    Warriortrader

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    Just wanted to add, that I am not affiliated to Tastytrade either. Basically been trading for over 12 years....almost exclusively Options...I trade with E*Trade (US) and a more crappier platform you would be hard pressed to find. But it is what it is.

    I tried to alert the OP to the fact that Tastyworks is not available to us here in Oz...just like TOS!! Apparently a clearing house problem...I have been told by the people at tastytrade.

    And I trade the US markets exclusively...

    Edit - I only found this Forum...based on searching for "tastyworks Australia"....to see if there are other disappointed people like me...if there are large numbers of us, we could influence things...if not, then, it is just status quo
    Cheers
    WT
     
  14. Virge666

    Virge666

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    E-trade - geez... you are at the bottom on the barrel, IB is not that bad, but it doesnt quite have delta calculation correct - and some of the strat graphs are wrong... but it is cheap and the newer Mosaic interface doesn't completely suck. and it is also only $2-3 a trade which is nicer than etrade.

    I am all for getting together and hassling those people in blue suits to make this happen. I so miss the days of TOS.
     
    Warriortrader likes this.
  15. Virge666

    Virge666

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    Sorry, missed this.

    What do you mean Risk / Vol.

    How much Theta i have on at a time... How much Vol i trade in ... I dont understand the Q.
     
  16. Warriortrader

    Warriortrader

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    Yes, E-Trade is crap. But I have a awesome Commission negotiated with them. BTW I trade over 4000 trades a year and my comms were in excess of 30K. Now that isn't meant to be a "I'm bigger than you" statement...but just gives you an idea of often I trade. I gave my job to trade for a living.

    Yes, mate, Im trying to garner as much "Aussie Support" as I can to leverage our case with Tom and Kristi...

    Thanks for your comments..
    WT
     
  17. OmegaTrader

    OmegaTrader

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    What is the return and risk of your strategy to calculate alpha.


    That is a lot of commission and a lot of turnover..

    What is the return and risk of your strategy to calculate alpha.
    hahaha
     
  18. Warriortrader

    Warriortrader

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    :)
     
  19. Virge666

    Virge666

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    Good on you mate - nice to have someone else out here to talk to. This was the main aim of the initial post - most people on forums are mainly beginners looking for holy grails and i really wanted to avoid them.

    If i can help in any way with the hassling of both sides - please drop me a PM. I can also give you my real email on PM as well. I can write good and grammar well.

    All the best.
     
  20. Virge666

    Virge666

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    Don't really have one - One metric i can give you in my Theta number. I try to collect about 30% of whatever my theta number is. So if i have sold a bunch of options worth $1000, I want to keep about $300 of that $1000 at the end of the month.

    As for my portfolio, 50% in shares with options sold against, 20% in other options trade like straddles and calendars depending on IV and 30% in cash to defend my positions or ramp it up when IV is higher.

    Does that make sense to you ?
     
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