Maybe someone can help I need real time options spread payoff software (this includes excel software) that can hopefully chart say an SPX option spread hedged with SPY underlying, or a VIX option spread combined position. It would be great to see the separate and combined greeks if possible. I know this can be done in TOS, but as I'm from Sydney and I can't open an account to use their software. I'm not sure if I have these combined payoff diagrams in IB's TWS. Tastyworks is rubbish for this stuff. Not sure about Hoadley.
Just curious: does such a trade (using options plus a different underlying for hedging or as part of the spread mechanism) not require very much margin? Wouldn't it be much better to use an underlying that has options, then margin-reducing spreads and covered positions can be built, which usually reduces the net margin requirement enormously, IMO.
I know these don't have an underlying. But then I as an options newbie really wonder why people trade them, instead of trading one that definitely has an underlying. What's the trick here? Or is it maybe a kind of pairs-trading?
1 spx = 10 spy ... so there's less fees. Also spx has no option assignment until expiry Still not sure about the software or the best way to handle this
Thanks for the info. Got it now! Btw, I'm a programmer and I can write a program for you if you give me all the details, incl. a real-time data source (since you said real-time), ie. the API of your broker or the API of a specialized data vendor. PM me for details if you don't find a ready-made COTS solution or any other solution.
Even an excel spreadsheet that tracks individual option/stock prices and greeks in excel and sums their totals would help.
ORATS has a payoff diagram that can be set up in the options chain or in an options scanner: The distribution behind the payoff picture is actual IV adjusted moves in the underlyer. The D% distribution edge is the expected value of the payoff at expiration. Notice the graph up top has the green and red circles for buy and sells of the trade: You can scan for the best distribution edge, reward:risk ratio, and filter by many criteria including open interest, and bid-ask width. https://dashboard.orats.com/manage-account to get a trial.