samedi 19 décembre 2015

Alerts for an option spread's delta

Hello everyone,

I'm looking into creating alerts in the ToS platform for help when monitoring active neutral option spread positions.

One of the alert types I want concerns the delta value for the option spread, both on the upside and the downside.

When setting up the upside delta alert I want it to trigger when a certain negative delta value is reached.
The reason is that the further price moves to the upside, the more negative the delta value becomes.

The problem is that I am not sure how ToS works with negative values on alerts.

Let's say the threshold value for delta is -15 and if it goes lower to e.g. -20 that is increasingly bad for the position since this indicates that price is moving further away.

If I were to setup the alert using: Delta, At or above, -15 how would ToS treat the "At or above" condition ?

Would it interpret a delta of -20 as a lower value (which it is) than -15 and thus not trigger the alert, or, would it interpret -20 as a higher (absolute) value and thus trigger the alert ?

/Robert


Alerts for an option spread's delta

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