Thinkorswim missing feature? a work around!

Posted by: Admin: "The Vol_Trader"  //  Category: Thinkorswim

I have zero complaints about Thinkorswim, BUT there is one feature that I’ve asked them to implement and the answer was that they’ve tried and for some reason that I didn’t comprehend, they cant implement it into the analyze tab due to how it works internally (or something like that, I told you I really didn’t understand the answer). 

What could possibly be missing from the best options, futures, and stock trading platform ever?  (Tom, I left out Forex b/c I have not traded that and thus have no comparison)

When I use the analyze tab I like to track my P&L for positions that I have closed previously along with my still-open positions.  Currently, there is no way to do this in Thinkorswim’s analyze tab.  I’ve found a very simple work-around for this.

Let’s say 3 weeks ago you put on an iron condor in SPY.  You sold ten contracts each of the $110c / $112c / $106p / $104p spread for a credit of $1.37 which looks like this: (Click any picture to enlarge)

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Three weeks later the market has not moved much and due to theta decay you’re up a few hundred dollars and you decide that you want to exit the put spread as you feel there will be a fall in SPY.

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You close the put vertical taking a few dollars in profit.  Originally, the put vertical yielded a net credit of $0.63 per spread.  You buy back the spread for $0.50 for a profit of $0.13 or $130.  Additionally, you’re up $360 on your call spread.

You still have your short call spread open but the Thinkorswim analyze tab no longer shows you the profit form your put spread.

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If you want to see your total profit for your call spread and your closed put spread you have to do this simple work-around:

I add a single OTM option to buy one contact and sell one of the same contracts.  In this case I’ll add one sale of the 45 put for $1.30 and add one buy of the 45 put for $0.00 yielding a hypothetical $130 profit.  If there were a realized loss, I’d buy for $1.30 and sell for $0.00 for a hypothetical $130 loss. Below is the P&L for the call spread and the work-around with the $130 included both at the current price, white line, and the expiration price, red line.

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Note the strike price, month and whether it’s a put or call are completely arbitrary as long as they are the same.  I like to use the farthest OTM strike I can find so I do not confuse it with the other simulated trades I’m looking at.

Hope this helps… Lawrence