OptionVue vs ToS

sonoma · Mar 28, 2010

Quote from methodology:

The only drawback I see with thinkorswim's ThinkDesktop is how, in the trade tab, the options chains are listed vertically and they cannot be lined up side by side.

I am always looking at time spreads - sometimes in a hurry - and am really hampered by how TOS lists the options. For example, if I'm trying to compare implied volatilities for 6 months, I have to set the option chain to show 6 strikes (or so) and then open up 6 months and basically write down all of the volatilities then pan up and down / up and down / up and down. If you get sick of it and get lazy it can weaken a position you're opening. I realize you have to work to put on good trades, and this is doing a lot of work, but it's unnecessary and stupid work. OptionVue solves this instantly with the matrix... But I am a fan of TOS and want to stick with them. Does anyone else have this issue with TOS - how do you deal with it? How do you evaluate a lot of time spreads (calendars, diagonals) quickly in TOS? Perhaps there is a clever way to use scanner that I have not thought of...
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You'll find tenor skew in widgets 360.

bmaltz · Jan 17, 2012

Quote from faldska:

I created a spreadsheet with commission schedules for some of the option friendly brokers. You can find it at:
http://spreadsheets.google.com/ccc?key=pUJFtMO5Tp1q_hdunt7agSw
I thought it would be interesting to calculate what TOS really costs compared to OptionVue.

I will compare TOS to IB (the cheapest commissions) and calculate how much extra is spent each year on commissions.

For an example I am assuming 10 trades of 10 single-leg contracts each per month:

Code:

TOS: $ 24.95 IB: - $ 7.50 ------------ $ 17.45 x 10 trades per month ------------ $ 174.50 per month x 12 months ------------ $2094.00 per year

From a previous reply:

So, the base cost of OptionVue is $1495 + $400 (backtrader) = $1895.
Each year of service costs $500 (quote data) + $650 (weekly BDB updates) = $1150

Code:

OptionVue OptionVue OptionVue OptionVue Year TOS base yearly carry-over total Difference --------------------------------------------------------------------------------- 1 $2094 $1495 $1150 $ 0 $2645 ($ 551) 2 $2094 - $1150 $ 551 $1701 $ 393 3 $2094 - $1150 ($ 393) $ 757 $1337 4 $2094 - $1150 ($1337) ($ 187) $2281 5 $2094 - $1150 ($2281) ($1131) $3225

This is very interesting data. From the chart you can see that you would be saving $393 in commissions after the second year.

Now, I haven't used OptionVue or TOS so I'm not giving advice here. I just thought I would present some data that I had already obtained. I've investigated Tradestation and for just a bit more than IB you get what seem to be fairly sophisticated tools. Again, I have not used Tradestation so I'm only giving you my observations.

~dave
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Very nice spreadsheet; however, in REALITY, TOS commissions are $1.50 per contract with NO minimum ticket charge (and yes, they were $1.50 back in 2006, when the calculation above was made). So, TOS is, ACTUALLY, quite a bit CHEAPER than OptionVue with Interactive Brokers. Over 5 years, you would spend $2,745 MORE with OptionVue than with TOS.

here is an updated spreadsheet based on the previous one by faldska:

https://docs.google.com/spreadsheet/ccc?key=0Ahz5cJ_tvywJdFRBMUVwUkJDelBDZzV2VjRZNEdkc2c

btw, I do NOT work for TOS

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OptionVue vs ToS

sonoma

bmaltz