Tuesday, January 26, 2010

Here is another view from TOS

So this morning I was playing with the analysis tool on the TOS platform. I used our AAPL earnings play as the test subject:

I isolated volatility as this play was on a volatility crush. You will see next to the Y axis 4 different steps in Volatility. From the top is current volatility moving in increments of -5 points lower. Next to each volatility step is the estimated profit. Will be interesting to see how this plays out during the open. Profit targets at the different volatility are at its current pre-market price of 205.7


  1. This thing was right on. IV dropped from its close of 45% yesterday down to 37% at the time I closed out the position. I originally sold the IC for 3.15 and bought them back for $2.02 for a $226 less commissions.

  2. I messed up and didn't log on until just now so I had to close out at $209 and I had the 220/230 instead of the 230/240 you had. I made $3 after commish. Does the ThinkBack tool allow me to see what this could have been closed out at when the stock was at $205 earlier?