OmniTrader Forum OmniTrader Forum
forums calendars search
today this week
 
register logon control panel Forum Rules
You are currently browsing as a guest.
You should logon to access more features
A Self-Moderated Community - ALL MEMBERS, PLEASE READ!
Vote for Members who contribute the most to your trading, and help us moderate content within the Forums.


This message cannot be deleted. It is the first message of the thread.
Administrators or moderators may choose to delete the entire thread


 
kmcintyre

Legend
100100100100
Posts: 410

Joined: 8/30/2007
Location: Valley Center, CA

User Profile
 
Subject : Targeting Delta and DTE in option trade plans
Posted : 2/15/2020 2:07 PM
Post #46759

I trade options that are very liquid. One measure of the underlyings option liquidity is the existence of weekly options and nerrow strike increments.

$0.50n for underlyings under $100. $1 increments for underlyings between $100 and $250. etc.

I manually compose my list of stocks and ETFs that I want to trade.

I am also very particular about the deltas of the legs I buy and sell, and the DTE of the chains I pick from. I have spent significant time researching which deltas and DTEs provide the largest Profit Per Day (PPD) and Expectancy.

Option trade plans use the concept of degree of money-ness and degree of expiration. The "ddegree" is based on whatever chains and strikes the options module believes should be available.

(or at least that is how I read the Users Manual...)

I have nevber embraced option trade plans because I do not think I can control the delta and DTE of the trades being entered.

So am I wrong?

Is there a way to tell an option trade plan to sell an iron condor, closest to 50 DTE, using Monthlies (not weeklies). Sell the strike closest to 30 delta and buy the strikes closest to 5 delta?

(Well, I know there is not. So the question really is, can I use a TP to place trades equivalent to the above? And how reliably will the TP model the trades I want to take?)

If the TP can't model the entry conditions I am looking for, than I can't use the options module to simulate Strategy returns for use in the GA Signals block.

Thanks for any insights.

Cheers


Deleting message 46759 : Targeting Delta and DTE in option trade plans


Nirvana Systems
For any problems or issues please contact our Webmaster at webmaster@nirvsys.com.