Thinkorswim risk profile question

Discussion in 'Options' started by raf_bcn, Jun 8, 2017.

  1. raf_bcn

    raf_bcn

    Hi
    I am not an expert in Thinkorswim platform.
    I would like to ask a question about P&L graph for a specific strategy.
    The strategy is the following, all positions are for the next monthly expiration.
    sell 1 2450 PUT
    sell 2 /ES
    This position is a synthetic short call, and the graph it is similar to a short call, but if we approach the graph you can see that there is an inclination, a slope,
    in the left leg but it would have to be flat. I don't know why.
    Maybe it's more easy to see if we add a call with same strike.

    buy 1 2450 call
    I think the resultant graph would have to be flat but it isn't and would like to know the reason.
    Thank you.
     
  2. Robert Morse

    Robert Morse Sponsor

    1 put : 2 futures is not a synthetic short call. Short 1 ES and 1 put would be like a short call.
     
  3. raf_bcn

    raf_bcn

    Hi
    Yes i forgot to specify the underliyng of the put.
    SPX put
    and the /ES is an e-mini SP500 index future contract.
    I thouhgt that a /ES contract is the half of SPX contract.
     
  4. Robert Morse

    Robert Morse Sponsor

    TOS might not pick that up.

    Why would you graph a spread where you know what the result will look like? You should know what a short call P/L graph looks like.
     
  5. tommcginnis

    tommcginnis

    As this (JUN) future is expiring, the position likely holds (shorts) the SEP.
    As the SEP ages, the value of the position would change. The OP doesn't say in which direction the slope occurs, nor whether the graph is 'at expiration' or X-many days to expiration. BUT[!!] the graph (PnL) set-up is a static picture, regardless. So.....

    A bit more info would help.
     
    Last edited: Jun 8, 2017
  6. raf_bcn

    raf_bcn

    Hi
    Sorry but i don't understand the question.
    yes I do, please what makes you think I do not know?
    thank you
     
  7. tommcginnis

    tommcginnis

    Because of your opening post.
     
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  8. raf_bcn

    raf_bcn

    yes, maybe he wrote his second post before I wrote my second one. No matter
    But also I don't think is wrong to graph any position although know the result.
    The expiration is the same day.
    I add an imatge.
     
  9. tommcginnis

    tommcginnis

    Your .pngs really illustrate your bewilderment -- I can't come up with an explanation myself, but then, I am no ToS expert, either. "I got nothin'..." :(
     
  10. Short answer: Can't get there from here!

    A hint (with TOS Analyze) is the selection of a symbol in the upper left box. You have SPX, which is NOT identical to /ES. (seems you desired to observe Both /ES, and your SPX option) Also note that the TOS Analyze function does NOT permit comingling of different underlying's as you may note from the "Positions and Simulated Trades".
    It is uncommon (I think) to find "free" PnL analysis tools of Risk Profile that allow evaluating "mixed assets".

    To understand why, this is not typically done, consider that all tools I am aware of for this have one (1) X axis! For TOS, they present the Spot Price across the X-Axis, which is NOT the same as the Future price. --If /ES were selected, then that (the future price) would be used across the X-axis. (close but not the same)
     
    Last edited: Jun 8, 2017
    #10     Jun 8, 2017
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