A.I.M. Users Bulletin Board

[Conrad]

AIMing Options

Long ago I was asked if it was possible to AIM Options with Vortex and I answered: "Of course you can! You can AIM anything that has a variable value. . .Horse Trading with Vortex is a Piece of Cake.

At the time. . .Ohhh. . . time flies!. . . I did not bother to adapt Vortex for Option Trading but now I have gone into that and I call it Penny Option Trading. . .POT. . .POT is legal!

The entering of the price and cost is a piece of cake. The Margin Requirement is entered as the Reserve Value. . it requires a bit of tinkering. . .That is my ProfessionJ

Example 1 Contract. Approximate amounts

Call AEX JUN13 @ 380 Sell. . . .Current Price AEX =345
Price = 0.4 Commission Cost = 2.90
Margin Requirement = 1560 at the time of opening.

The AIM Option Value = 100*0.40 = 40
Commission = -2.90
Net on Bank Account = 37.10
The Capital Injection is say 2000 to cover the Margin Requirement.
Interest on Reserve = 0 %

After execution this appears on Vortex

Reserve = 2000-40-2.90 = 1957.10
Equity = 40 which has already been deposited on the account.
PV = 1997.10
Profit = -2.90

As a writer of the Option I know that the account actually stands on 1997.10 as the value of 40 is already liquidized. I can change it easily so that the Value becomes added to the Reserve. For my own use this is not necessary but for other using Vortex the amounts shown must make sense without having to do any calculations.

Also I can start with exactly the Capital amount so that the Reserve reflects the Margin Requirement(MR) of 1560 but the MR is not yet a variable in the program.

I could change the program so that the Reserve become the MR. As the price of the option changes then the MR changes as well. That way I know that my account needs to have at least the MR value on it at all times.

Question
Does anyone think it is necessary that in the program also the potential Benefit and the Risk of a forced execution should displayed on the Status Screen of the Program? I do not need that for myself as I simply look at the AEX price difference and can roughly calculate the Execution Amount if the AEX Price approaches the Execution Price and decide on that to let the execution take place or to close the Contract.

In order to get the program adapted I simply need to enter the applicable AEX Price and the Execution Price. . .The trading costs can already be entered.

What would be your suggestions be on what to show on the Status Screen?