IB Volatility trading

Discussion in 'Options' started by fisho, Apr 25, 2007.

  1. fisho


    I'm trying to understand and use the volatility trading in IB with automatic delta hedge. it seems to me a mess. the vola I insert is out of range even if I checked in the option modeler. I don't run the last tws to avoid bugs ...
    Some better experiences ?
    What should one write in the Delta Neutral Aux Price field ?

    If desired, enter a volatility to use in calculating a limit price for the option. If blank, the calculation will use the volatility derived via Option Analytics.
    Volatility Type
    Select from Daily or Annual volatility.
    Delta Neutral Order Type
    Select an order type. The application will send an order against the executed option trade to maintain a delta neutral position. Use the Delta Neutral Aux. Price field to set a price for orders that require one.
    Delta Neutral Aux. Price
    Used in conjunction with the Delta Neutral Order Type field. If you have selected an order type that requires you to define a price, for example a limit order or a relative order, use this field to set the price.
    Continuously update limit price
    When checked, the option price is automatically updated as the underlying stock price moves.