Why is my VIX call showing loss on increase, and profit on decline?

Discussion in 'Options' started by kmiklas, May 13, 2020.

  1. kmiklas

    kmiklas

    I accidentally sold the call instead of buying it. There seems to be a bug in IB; I will call them tomorrow. It's documented above.
     
    #11     May 13, 2020
  2. That is no bug.
    If one selects the BID for placing an order, the tool assumes you want to Sell at that price. If one selects the ASK for placing an order, the tool assumes you want to Buy at that price.
    If you wish to make a different trade you should insure you know how to use the tool you have to possibly modify your order to what you desire.

    While I do not have IBK, TOS makes similar assumption, when one desires the default orders.
     
    #12     May 13, 2020
    TooEffingOld and narafa like this.
  3. narafa

    narafa

    Doesn't happen with me, I click on the offer and it opens a buy ticket, normal. Maybe you experienced a bug. Simply add the option to your watch list and see what it says in the position column 1 or -1.
     
    #13     May 13, 2020
  4. old coot

    old coot

    You'd think a company making cough syrup and Vaporub would be a pretty solid investment.
     
    #14     May 13, 2020
    jys78 likes this.
  5. donnap

    donnap

    destriero rides again;-)
     
    #15     May 13, 2020
    destriero likes this.
  6. def

    def Sponsor

    As mentioned that is no bug as it clicking on the offer to buy or bid to sell is faster. If you do not like that type of action, you can play around with your configuration settings as well as set up hot keys to do the opposite.

    One other item another poster mentioned which I would like to emphasize. Take advantage of the paper trader. You can learn the software, optimize your set ups and gain experience on options and more without the expense.
     
    #16     May 14, 2020
    kmiklas likes this.
  7. Atikon

    Atikon

    What edge? Are you talking buying short term option for the convexity in gamma? That's wsb "edge"
     
    #17     May 14, 2020
  8. Atikon

    Atikon

    So you SOLD a Call the Vix spiked and the value of the Call wen't up, thus the Seller is assigned the Loss since he sold the call at a lower price than what the Call is worth today. Might want to edit the OP
     
    #18     May 14, 2020
    kmiklas likes this.
  9. Atikon

    Atikon

    My Bad, your talking about the Essence of 0 DTE Strategy. Yeah checks out
     
    #19     May 14, 2020
  10. kmiklas

    kmiklas

    Thank you; yes, I mixed up the bid and ask prices.

    Personally, I don't like paper trading for this particular exercise, because I want to watch how the option moves intraday. I have my live trading terminal running all day--with algos running on port 7496, and can't shut everything down to start the paper terminal. So, I bought one relatively inexpensive option for learning purposes. Also, I find that I learn better if I have even a little bit of skin in the game. Regardless, thank you; good advice.
     
    #20     May 14, 2020
    apdxyk likes this.