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Adjust a BF-> Handling as Combo or not?
- Thread starter M12
- Start date
Not sure what you mean by combo and how that relates to IB individual legs and ONE
Perhaps an example might clear up the question
The way I have seen JL make adjustments is using spreads or move the entire BWB and he is using ONE
Not sure if looking at individual legs would help to manage the trade any better than looking at the entire trade It may show which leg is loosing or gaining the most but I have tot seen JL make any adjustment based on one leg of the trade besides if you make a different adjustment than JL than you are no longer following his strategy so your results may vary
The only time I have seen JL make a single leg adjustment is when he is using a call to balance the BWB but that is not a combo and he is looking at the overall delta not any individual leg
Perhaps an example might clear up the question
The way I have seen JL make adjustments is using spreads or move the entire BWB and he is using ONE
Not sure if looking at individual legs would help to manage the trade any better than looking at the entire trade It may show which leg is loosing or gaining the most but I have tot seen JL make any adjustment based on one leg of the trade besides if you make a different adjustment than JL than you are no longer following his strategy so your results may vary
The only time I have seen JL make a single leg adjustment is when he is using a call to balance the BWB but that is not a combo and he is looking at the overall delta not any individual leg
With combo I mean the Butterflytrade is recognized as butterfly and shown as one position.
Typically for strategies you want to use a specialized software. Brokers are not very good at tracking your adjustment and definitely will not show the proper P/L for the whole life of the trade.At the first seconds of minute 14 he moves the upper leg. He does that often for a M3.4U. My question is how would you handle the adjustment with the TWS? Assuming the BF is initiated in the TWS as one combo order, would you try to keep the combo when you roll like this, or would you accept that the combo would be destroyed by first selling and then buying the leg?
With combo I mean the Butterflytrade is recognized as butterfly and shown as one position.
Not sure if you can use IB to analyze complex trades From what I remember IB has some kind of crude option risk graph but I am not sure if it's good enough to make good trading decisions You could make the trade that JL is doing if he has some kind of trade alert service but to follow his rules you would ideally use ONE or TOS to get close to the delta that he is looking for
Obviously once you start modifying the BWB the combo is going to be destroyed as you say or modified but that is not a bad thing it's part of making the adjustment so you can't keep the combo intact and still make the adjustment and I am not sure how IB would handle the adjustment
and how the graph would look on IB I imagine not very good
I assume you don't have access to TOS so I would suggest to get ONE to look at the same graph that JL is looking at if you are planing to trade complex options
If the BWB is destroyed in IB you should be able to track it as 2 separate spreads but I am not sure how IB would show the graph and not sure if IB keeps track of the legs that are closed if not you would have to keep track of it yourself
Obviously once you start modifying the BWB the combo is going to be destroyed as you say or modified but that is not a bad thing it's part of making the adjustment so you can't keep the combo intact and still make the adjustment and I am not sure how IB would handle the adjustment
and how the graph would look on IB I imagine not very good
I assume you don't have access to TOS so I would suggest to get ONE to look at the same graph that JL is looking at if you are planing to trade complex options
If the BWB is destroyed in IB you should be able to track it as 2 separate spreads but I am not sure how IB would show the graph and not sure if IB keeps track of the legs that are closed if not you would have to keep track of it yourself