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)
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.
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.
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.
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