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PreferredTrade
6.2
Position Greek
Summary
The Position Greek Summary table
shows the net position for all holdings. Any users with a
combination of stock and options holdings will see everything
consolidated under the stock symbol. Here users will find the
current price for the stock, the net profit/loss for the
position, and the greeks (delta, gamma, vega, and decay).
Double-left clicking on the symbol for position detail.
Analyze
Positions from Position Greeks
Analyze your Position by right clicking on the stock and left
clicking on "Analyze". The analyze position window will
load automatically. Analytics is a tool that gives investors the
ability to:
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Compare
current option prices and implied volatility to
historical volatility.
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Perform
instant analysis by simulating changes in a variety of
factors – for example, stock price.
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Evaluate
the potential profit/loss of real or hypothetical
positions.
For more
information see Analyze Positions.
Automatically
Enter Order from Position Greeks
Automatically enter orders from Positions Greeks by right
clicking on the stock or option symbol and left clicking on the
type of order you want, including spreads. The system
automatically fills in the order entry boxes with the symbol,
number of shares or contracts, last sale price and the default
route. This eliminates the need to manually enter orders. Go to
the order entry boxes and verify the number of shares or
contracts, modify the price, click "send" to submit the
order.
Position
Greek Detail
The Greek
Position Detail table shows the breakdown of each holding within
each position. The following columns are found in this section.
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Position:
This is either the number of shares or option
contracts
owned.
- Trades: Lists the net
number of positions you have bought or sold on the day
for each stock. If you have bought and sold the same
number of shares, then the net is zero.
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Current
Price: This is the current price mark, (bid +
ask)/2.
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Yest Price: This yesterday's price for current
positions. If you add a new position it will be the
current price.
- Profit/Loss: Real
time total of profit or loss for all positions during
the trading day.
- Current Value: Will
show the real-time current value for for each position.
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Delta:
The change in the price of an option relative to
the change in the price of
the underlying stock. For a call option, a delta of
0.50 means a half point rise in the option price for
every dollar that the stock goes up. For a put
option, a delta of 0.50 means a half point rise in the
option price for every
dollar that the stock goes down.
-
Delta/Position:
This is the Delta value per position
(Delta/Position).
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Gamma:
The change in delta for every point change in the
underlying stock.
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Vega:
The rate of change in an option’s value relative
to a 1% change in the volatility.
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Decay
(Theta): The rate of change in an options value as
time passes.
A portion of every options value will be time value.
Time value is that
portion of an options price which represents the amount
of time until
expiration. An option’s time value will be greater
for those options
with a longer amount of time until expiration as there
is a greater likelihood that they will increase in
value. This time value gradually
decreases (decays) as the expiration day nears.
An option’s price decay
tends to accelerate in the 30 days before expiration.
The previous four items are generally referred to as
the “greeks” and are simply mathematical
calculations used to determine the effect of various
factors on options.
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Volatility:
Historical volatility. This is a moving average of
historical implied volatilities
of at the money options.
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Expiration
Date: The day on which options expire. The
expiration day is the Saturday
following the third Friday of every month.
-
Current
Value: Will show the real-time current value for
for each position.
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