position adjustment assistance Hoadley vs. TOS/OVue

Discussion in 'Options' started by ubs, Nov 28, 2006.

  1. ubs

    ubs

    ubs


    Registered: Nov 2006
    Posts: 1


    11-28-06 06:36 PM

    Can anyone give me any guidance with regard to use of the Hoadley Option Strategy Eval Tool and/or TOS/OV re: adjustment of an ongoing trade? (read on for specifics of my question)

    In the Hoadley oset tool (which I use and am familiar with), I've run into a possible limitation...(I hope I haven't & thus this request for assistance)

    Specifically, my confusion is stemming from the following:

    As an example, say I put on a simple calendar spread position.

    The shorts expire worthless and I want to re-sell new front month shorts against my longs (which I still have).

    In this case of selling the new front month shorts.....does the "deal date" I enter in the oset matter? It seems to me that it does..for if I change the deal date & "re-run" calc.iv per leg, the whole position p&l changes.

    - It seems that the "deal date" for my longs would have been a date in the past (the date that I bought them).....and the "deal date" for my recently sold (new) shorts is today....that would make two separate "deal dates" - wouldn't it? If so, which date to use to graph new position p&l appropriately? Or, what process of using the tool could I use to accuratly do this?

    I've also noticed that the graphed position p&l tends to change after I "calc. iv" for trades 1 through 6 (in this case just trades 1 and 2). Meaning, I press the buttons in the oset to calculate implied volatility per leg and the graphed position p&l changes. I'm assuming that this procedure is a "must do" for each leg opened in order to get a proper p&l graph and table of the position, yes?

    That's a "mind-full" but I think you'll get my meaning (I hope).

    as an aside - I gather that I can enter the profit ((or if bought back at a loss - as not in this example...a loss)) in the "intial debit/credit" section - this would assist me in the overall p&l of the continuing position and on-going position graph - yes?