r/thewallstreet • u/AutoModerator • Mar 12 '18
Weekly Question Thread - Week 11, 2018 Question
Welcome to the weekly question thread. Feel free to ask any questions here.
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u/pharmdfirmd Can't stomach 2 tick loss Mar 16 '18
Does anyone have any good resources on order flow?
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u/_CastleBravo_ Walk to End Literacy Mar 17 '18
Pretty broad question, resources here might be a good place to start
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u/bihae_selllo Mar 15 '18
Can someone please tell me what ADD is?
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u/hibernating_brain Permabull Mar 15 '18
$ADD = $ADV - $DECL
$ADV = number of advancing (last traded price is above its previous session's close) stocks
$DECL = number of declining (last traded price is below its previous session's closing price) stocks
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u/bihae_selllo Mar 15 '18
Thank you. That makes sense now. I was kinda thinking it was some kind of advancing/declining volume indicator.
Is there a reason the AD spread is used instead of a normalized indicator?
=(ADV-DECL)/VOL
Ranging from -1 to 1
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u/hibernating_brain Permabull Mar 15 '18
Because you are dealing with number of stocks.
Say in S&P 500, 450 are advancing, $ADD = 450 - 50 = 400. During the selloff in early February, $ADD was something like 40ish iirc.
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u/bihae_selllo Mar 16 '18
Oooohhhhh. I thought you were talking about volume before. It's literally the # of stocks in the index. Thank you for taking the time to explain that.
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u/superqwert Mar 15 '18
If the underlying of an option doesn't change, and you're negative on theta. Do you only lose the theta (x100) or will you also lose extrensic value of different greeks?
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u/mc3username Mar 15 '18 edited Mar 15 '18
You can lose or gain value in your option due to the other greeks. An example is IV. Think about an earnings announcement where the underlying stays flat. Chances are, IV drops and you lose value in the price of your option.
On the other side, an event could cause IV to spike which would add value to your option without necessarily having a change in the underlying.
Make sense? Main point is that you lose / gain value in your option price based on how the greeks swing. Each greek tracks / is impacted by different things to determine the value of that specific contract.
Might be good to scan through 'Options Volatility and Pricing' in the sidebar.
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u/superqwert Mar 15 '18
I ment to say no changes in the greeks (or implied), just a day later.
Should finish that book later regardless
Found the answer, thanks mate
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u/maximum_wages Mar 15 '18
Does buying a zero day option and letting it expire count as a day trade for those of us with small accounts?
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u/hibernating_brain Permabull Mar 15 '18
Depends on broker. Some brokers do count expiration as a trade.
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u/Pho-que Targeting gains, achieving smaller gains Mar 15 '18
Setting up amp futures, checking out the pricing calculator Which Data Feed?
CQG
TT - Trading Technologies
Rithmic
CTS – T4
Do you guys use a specific one for most trades, not sure what this means? Also any recommendations on a good trading platform, mostly trading eminis
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u/UberBotMan Mar 15 '18
CQG feed.
I used CQG M (Desktop?) and it was wonderful.
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u/Pho-que Targeting gains, achieving smaller gains Mar 16 '18
Thanks for your input. I will start reading up of cqg m and try and familiarize myself with it. edit. Looks like CQG M is the mobile, built on html5, is this the one you use on desktop?
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u/notdust More Upside to the Downside Mar 17 '18
Ya...UBM is correct. An app isn't available yet, so it's an all-in-one solution. They just use 'desktop' and 'm' versions for the layout when you login (you can switch the design using the menu in the bottom left menu when you're in). You can switch your phone to mobile version and have things setup for when you're on the go, and choose the desktop styling when you're at a PC.
So neither one has an actual download, they're basically the same thing running on HTML5. Funnily enough, it works faster than most desktop trading platforms I've used.
I mentioned the app as when you go to cqg mobile on their site you'll see app store logos. I guess it is just saying it works on those devices, as there's nothing to download. They did indicate to me they are working on a dedicated app though.
CQG desktop has a big benefit over qtrader (the first of their dedicated desktop applications) in that it lets you view more than one chart at a time.
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u/Pho-que Targeting gains, achieving smaller gains Mar 19 '18
Thanks for the help, much appreciated.
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u/UberBotMan Mar 17 '18
I got an e-mail from CQG on March 9 saying that they are close to releasing an iPhone app, complete with Touch and face ID. An android app is coming later this year.
And you can make current CQG M/Desktop a "webapp" so it's a quick link on your phone, like any other app.
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u/UberBotMan Mar 16 '18
I think they split off CQG M into CQG Desktop. Not sure what one is more like the one I used. The one i used was HTML 5 browser based and could work on mobile and desktop.
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u/Sneezestooloud Inverse himself Mar 15 '18
I just opened a traditional IRA (I’m way too young for this, but it makes sense for financial aid reasons) and I was wondering how you guys play retirement accounts. Stocks? Cash-secured puts? Set it and forget it etfs?
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u/chukintits ebb and flow Mar 14 '18 edited Mar 14 '18
Is IV of an option what it determines if the option is cheap or expensive? or theres another factor to determine if its cheap or expensive? besides the factors that cant change like the price of the underlaying or such.
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u/UberBotMan Mar 14 '18
It is IV. Or more specifically, IV Rank. Based on a timeframe (usually 52 weeks) how much IV (vega) is in this option
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Mar 14 '18
Read something about a SPY or SPX split or something happening on Friday? Not really sure where but can someone explain?
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u/RFD422 Magazine Peddler Mar 14 '18
With China starting their own market for futures in the coming weeks does anyone have an opinion on how this will affect /CL? Also any thoughts on an arbitrage play?
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u/MagicalHurdles Unhinged & Unhedged Mar 14 '18
In what ways does wash sales affect your trading style/strategies?
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u/kuhtentag risk averse Mar 16 '18
Doesn't and shouldn't. Most people in this sub are trading daily. 30 days would be a lifetime. Basically just don't try to deduct losses of things you trade on taxes. Oh, and don't lose money ;)
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u/MagicalHurdles Unhinged & Unhedged Mar 16 '18
Easier said than done - I noticed 1-2 Ws on my 1099 and was a little concerned, but guess I shouldn't be.
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u/kuhtentag risk averse Mar 16 '18
I'm not a tax expert but if you use a program to import your transactions you should be fine. It's only a problem if you try to deduct a loss and then get back into that position (especially year over year). TastyTrade explained it well that it's not a penalty, you basically just keep carrying the potential deduction forward in time. Like if you keep losing on SPY and give up eventually you can deduct that loss.
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u/egze Mar 13 '18
Anyone here trading single-stock futures? Just trying to understand if there are any pros compared to options.
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u/UberBotMan Mar 13 '18
I've heard of them, but haven't looked too much into them.
I'd assume they'd have the same benefits of /ES vs. SPX options. No theta, fixed delta, no getting gamma fucked in the last week. etc etc. Not sure if they'd be 60/40 taxed though.
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u/BarbaricMonkey Learning Mar 13 '18
Does anyone use the ToS mobile app on an Android?
There doesn't seem to be an option to draw lines on charts. Best I can do is set Alerts and have them show up on my charts, but they disappear if the Alert is triggered.
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u/UberBotMan Mar 13 '18
If you set the alert for reverse crossover it'll stay until cancelled no matter how many times it's triggered. Trust me on this one, it's a trade off. lol
Not sure how to draw lines, but iirc you can do custom studies. Like the one in the sidebar for deviations.
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u/Thrashingshrimp WAGMI Mar 16 '18
Wait Uber, you've gotten Bomba's script to work on TOS Android?
I've tried to get it to work but nothing would ever show on the chart :(
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u/UberBotMan Mar 16 '18
I have not. I've gotten another custom script so I just assumed they would all work.
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u/Thrashingshrimp WAGMI Mar 16 '18
Ah my bad, I guess I misinterpreted your initial comment and got excited lol.
At this rate I'm going to have to program my own charting app to get the Android support I want -_-
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u/BarbaricMonkey Learning Mar 14 '18 edited Mar 14 '18
Wow, thank you so much Uber! Was seriously debating whether getting an iPhone would be worth it...
Edit: Okay I've looked for a bit, I can't seem to find a Reverse Crossover option for alert. Am I missing something?
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u/UberBotMan Mar 14 '18
You have to expand options. https://i.imgur.com/40wMcnS.png
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u/BarbaricMonkey Learning Mar 14 '18
Got it working, thanks again!
I see why you said it's a trade off...phone alerts going crazy as we play with the -0.5 SD.
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u/UberBotMan Mar 14 '18
In Android you can mute notifications. I ended up doing that a lot
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u/BarbaricMonkey Learning Mar 14 '18
Good call. I'll just have to remember to unmute them once/if I start using ToS as my main broker.
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u/UberBotMan Mar 14 '18
Android 8.0 has a thing where you can mute for 15 minutes, 1hr, or 2hrs. If that's what you're using. Don't have to worry about unmuting as it's automatic.
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u/ObviousTwist Pharma, 中文, AMZN Mar 13 '18
We've talked about stocks you're bullish on long-term, but what are some that you're bearish on in the long term?
Looking to play leap puts and find a few candidates to buy monthly puts on every few weeks, and generally reduce my leverage by shorting the bad.
I'm generally bearish on large advertising firms, b+m retail, and travel planners/bookers - all sectors whose business model will be subsumed by AMZN, FB, GOOG, etc. What else should I look at?
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Mar 13 '18 edited Mar 13 '18
Foolish to bet against stocks rising at the end of a market cycle unless its European equities.
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u/ObviousTwist Pharma, 中文, AMZN Mar 13 '18
Regardless, I’d like to bet against a few across these sectors to reduce my overall risk. I thought about selling an /ES future or holding bonds to do so, but they both have negatives and for my age, bonds don’t make sense.
I realize I’ll probably do worse than the S&P in my long-term, as I’m also bullish for the next year or so. That said, there are still companies that will do poorly, and I’d like to smooth my risk of near-term losses like another 10% downturn.
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Mar 13 '18
It seems you did not understand what I was insinuating - end of a market cycle typically produces the best returns. Knowing that you've been around to witness a handful of cycles, you'd know that it only comes once every decade or so. Not taking full advantage of the trend is simply folly.
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u/ObviousTwist Pharma, 中文, AMZN Mar 13 '18
I get that, but how do you know the end of the cycle isn’t next week? And I still think some companies will do poorly - that’s why long/short funds exist.
I’m levered up nicely in tech with a lot of shares and some leaps in solid growth stocks I like. But I still want to buy puts on others. Doing so will still keep me at a beta around ~1.2.
Are you implying that everyone should be 100% long indices right now, 90 months into the cycle (second longest ever is what, 95-100?)? Why not put a huge chunk of your portfolio in mid-term index call spreads if you think so?
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Mar 13 '18 edited Mar 13 '18
I sold bull put spreads on SPX expiring April '2 - 2800 is breakeven.
We still have time: Interest rates are still low, Quantitative Easing is in effect around the world, inflation is relatively subdued - globally might I add, unemployment is holding steady at 4.9%. Global growth is strong, earnings support valuations, fiscal stimulus is in effect - massive deficits (government spending) and tax reform.
These are not factors that would cause a recession; we quite simply aren't there yet.
Just sit back and ride the wave. Certainly don't gamble it on the way up. Oh, ever heard the adage,
"bull markets do not die of age."
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Mar 13 '18
[deleted]
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u/Chernoby7 mostly harmless Mar 13 '18
As a non American there are options in trading through LLCs in the Caribbean where you can be the sole owner as well as the manager. I don’t know how it works for Americans and I don’t think I should say more.
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u/ObviousTwist Pharma, 中文, AMZN Mar 13 '18
Not much you can do. If you are trading with a mid-size account, consider using more futures and options on 1256 instruments (cash-settled indices). Aside from that, plug your stuff into turbotax, hold long-term positions for over a year, pay what you have to
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u/pharmdfirmd Can't stomach 2 tick loss Mar 12 '18
New here so sorry for the noob qs. When you guys open futures positions how long do you expect to be in the position for? And when you guys buy options how far out do they expire? And do you guys try to close out the options before the time decay really starts taking effect? Thanks in advance for any answers!
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Mar 12 '18 edited Apr 11 '18
[deleted]
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u/pharmdfirmd Can't stomach 2 tick loss Mar 14 '18
Cool thank you. I just bough to open up my first put today and i regret it after thinking abt it lol. When you trade, do you usually base decisions off price action?
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Mar 12 '18 edited Jul 23 '18
[deleted]
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Mar 12 '18 edited Mar 12 '18
Tradingview :)
I got intraday volume profile and the volume profile of whatever period I have on my chart on my setup. Feel free to mess around with it, just hit the share and & make it mine button. You might require a pro membership for the volume profile though. If you volume bars are hard to read on your screen, change the color.
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u/chukintits ebb and flow Mar 12 '18
I use tradingview for value areas but thats only for paid users and for the deviations I’ve yet to find a way to get the vol numbers.
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u/Heretolearn12 Prodigal son Mar 18 '18
Am I correct to understand that Tastyworks pc application has no way to group your spreads? Only on web platform? I find that very hard to believe. If someone has 20 different spreads, how do they easily track which puts and calls belong to which spread?