- ago
Does anyone have good understanding of options and know how to develop a good strategy ?


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- ago
#1
I mostly trade Volatility products, but I also use options hedges on them. So I do have a good understanding of options and I have developed number of options strategies, but I only trade SPX and VIX options since they are very liquid.

You want to note the following:
1- You need IQFEED with real-time options streaming for live trades and back testing. Monthly cost is about 200$.
2- Most of options are not liquid and don't trade as frequent as stocks, so if you trade on small time intervals you have to fill in theoretical values for backtesting.
3- You can't use theoretical Black-Scholes model calculation. It rarely gives good prices.
4- You want to construct the symbol for the contract name, such as "VIX2218F28".
5- Find out the right delta and strike price.
6- Calculate expiration dates considering holidays.
7- High commission fees.
Let me know what you want and I will see if I can help. You can contact me on my website https://yellowpalace.com/ActiveTrader
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Cone7
- ago
#2
IQFeed has expired option pricing? I wasn't aware of that!

fwiw, here's their options symbol guide. It's very non-standard.
https://ws1.dtn.com/IQ/Guide/options_stocks.html
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- ago
#3
Yes. It can, as least, go back as far as 2012.
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