TastyTrade/TastyWorks

Discussion in 'Beginner Traders' started by Robin, Jan 3, 2018.

  1. Robin

    Robin Member

    Has anyone traded the tastytrade mechanics, using strangles, straddles, iron condors, etc.... early management with high probabilities? With success?
    Is anyone using TastyWorks brokerage with the cheap commissions?
     
  2. status1

    status1 Well-Known Member

    Yes I am using them
    I just placed a trade today
    I have to wait until tomorrow to see what the commission numbers look like

    One thing I found with Tasty works is they don't like ratio spreads too much so if something is unbalanced the reject the order so I had to split my order into a condor and a short vertical
    They are saying that the exchanges are not taking those trades
    Last year I had an unbalanced condor that was filled but when I was trying to close the same order it was rejected
    Doesn't matter too much as long as I get my order in
     
  3. Anil

    Anil Member

    I'm using TastyWorks and love the platform - fast, easy and intuitive. They are still building it up and will have an Analysis page with a Risk Graph coming in the next few weeks
     
  4. 1coin3lives

    1coin3lives New Member

    Hi - new member here and saw the post about Tastyworks.
    I use TW as well as Interactive Brokers and TD Ameritrade/Thinkorswim.
    I like the TW interface the best of the 3. In a nutshell here are the key differences from my perspective:

    1. IB - super low commissions, crazy low margin rates. Lousy software. I know my way around Trader Workstation but I dislike using it. It was designed a long time ago and it shows. Their "strategy builder" however is pretty good if you want to create complex trades. With their commission structure the downsides might be worth the pain depending on how you trade.

    2. Tastyworks - good commission structure (excellent if you trade very large orders), excellent software and UI, but it's still experiencing some growing pains. I find it cumbersome to set up diagonals and more complex trades on their platform, but Condors, Butterflies, and verticals are a snap. Their mobile app is good but lacks a few important features like push notifications (really? yep). They've really tried to make a modern interface for trading and it shows.

    3. Thinkorswim - very deep feature set, steep learning curve at first but great for modeling and visualizing trades. The big downside is that their commission structure is much less appealing than the other two. Even though I like TW a lot, I'd probably use ToS if their commissions were more competitive.

    Hope that's helpful.
     
  5. status1

    status1 Well-Known Member

    I agree with pretty much what you said and I have 2 out of the 3 you mentioned
    The lousy software and the platform at IB was the main reason that turned me off and did not open an account with them I felt that the low commission was not worth it to clunk around on that platform and possibly make a mistake in placing a trade I also did not care for the separate data fees

    If you are doing complex trades I think TOS is the best out of those 3
    Once you get used to the analyze tab it's hard to trade without it
    While the commission may be higher for small trades as you increase the contract size the commission difference is minimal plus you can also try to negotiate a lower commission if you qualify

    Still curious to see what Tastyworks comes up with as far as the analyze tab is concerned
    I would imagine it would be something similar to TOS with just a few small differences so TD can't say they copied it
     
  6. Oliver

    Oliver Member

    I made money with their approach. I recommend avoiding the more complex structures on any underlying that's under $100. I mostly stuck to verticals with fundamentally good or bad stocks. I also stuck to the most liquid stocks. I would definitely use TastyWorks as a broker for their approach because commissions will be the biggest drag on your profit.

    I averaged 4% return on risk in around 2 weeks. That sounds good at first but digging deeper - say you sell a $2 wide vertical spread and you make $8 gross. Your TW commission is $2 which is 25% of that average profit. So, it's possible to trade this way at TW but it would be very hard for me to make money with other brokers.

    Also, as I scaled up I always went wider as much as possible before ramping up contract size. I'd rather sell 1 $4-wide spread than 2 $2-wide spreads because it halves the commission. Their new commission cap could also be interesting if you are going in very large on single trades.
     
  7. status1

    status1 Well-Known Member

    I understand what you are saying
    For me I don't have time to analyze stocks to see which is good/ bad , liquidity, direction, earnings
    I am using the SPX as my underlying so that takes care of liquidity and earnings moves
    The spreads vary depending on volatility and market direction and I am doing more complex options that mitigates some of the risk
    It all depends on how many contracts you do
    If you do just one contract the commissions will eat up a lot of the profits
    Between 2 and 10 Tastyworks is better and after 10 the difference gets smaller between brokers
    So for me if I do a 5 lot BWB that's 20 contracts so the difference for me is almost negligible
     
  8. Oliver

    Oliver Member

    Completely agree - I was responding more to the original question and assuming stocks as underlyings. Also, I no longer do the tasty style though I might again sometime. I'm currently trading SPX complex spreads and adjusting. Like you, I use TOS with negotiated commissions.
     

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