MEIC Trade Planner

S

status1

Well-known member
I watched to presentation for the Portland options traders meetup where the MEIC trade planer was shown and I was wondering how it is supposed to be used
I changed some of the settings and it says it's ok to trade but I am not sure if that is correct or not or maybe the tool is not quite finished yet
Here are the settings I used
10k for net liq
Allocation %=6
units =1
contracts = 1
wing width = 5

In the results it shows bp as (500) which is correct
the credit shows at 120 per side or 240 total which is only 15 points from ATM and the EM for 17 Jul is 22 so it seems a little risky to me
The max loss shows at -240 which I am not sure if there is a stop loss set for 2 X the credit otherwise the max loss without a stop loss would be -260


Using the jul 20 expiration and the same 5 wide IC I can go 30 points out which is past the 22 EM for Jul 17 and still get the same 240 credit so I think that would be a safer trade and you have a little more time to adjust of course the profit will take longer to come in
 
You have to enter the credit manually.

For a 5-wide spread, you are going to have to get fairly close to the cash price to get $1.20.
 
I did a simulation today with the 5 wide setting on MEIC although I just entered 1 trade
I got in right at the open with -4520/+4525 call and -4490/+4485 put the credit was 245 with 255 risk

I checked on it at noon and it was up about $60 so I could have closed it with 24% gain but I wanted to see if I could squeeze out a little more profit or at least reduce the risk on the upside so I added a call debit spread to the upside +4510-4515 This turned it into a smaller IC with $90 risk on the upside and down to the leg of the 4490 put

Than later on I did another adjustment where I added another debit spread that actually turned out to step on the short call to close it out so that just left the long call and the short put
So I let it expire and made $90 on $910 risk
If I had just let the original trade expire without adjustments it would have lost -$32 and that is just with a 17 point move in the SPX which is somewhat small compared to other days

I am also simulating another 5 wide but a little further out 20 JUL starting with the same credit $240 The trade was just around breakeven after 1 day without any adjustments but I will simulate a call debit spread similar to what I did on the other trade so I have an IC with only $5 loss on the upside and down to 4475 to the short put and $505 for the max loss below that

I just wanted to document it here so I can refer to it later to see how the trade is progressing
 
I am still in the 20 JUL simulated trade
Without that adjustment from yesterday it would have been down about -120 but with the adjustment it's up +47 and that's with 15 points above the upper long
I made another adjustment just now with another iron condor next to the one from yesterday so now I have 2 condors next to each other with SPX near the upper condor call spread so the risk on the upside is -80 and down to 4475 and -580 below that
 
I had to make another adjustment today on the simulated trade to keep up with this relentless move up as it was outside the 3rd IC tent
I closed the original IC and upended a new one further up
Before closing the original the Theta was -86 and delta was -2 but still had a small profit
After the adjustment p/l is about $70 Theta is +254 and delta is -.3 and SPX is in the middle of this third tent with -$140 risk on the upside and down to 4525 and -$640 below that
 
Well that did not work out
I made an adjustment in the morning by using a short fly to take out the dip between the two IC's so that left a wide IC but with this big move down it went past the lower leg of the IC so it looks like -185 loss as if it expires above 4525 otherwise it could go lower to -685
It was a good learning experience but I did not treat it like I had money on the table so I only looked at it a couple of time a day
In hindsight the trade would have done better without that last adjustment but that's the problem with SPX it can stay irrational a lot longer than the expiration of the option
 
srk said:
i cant find the trade in the members library. is it under a different name ?
Click to expand...
This is not a trade in the library It's just something I tried on my own

If you subscribed to the butterfly workshop there is a presentation tomorrow on the MEIC
 
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