TastyWorks

Discussion in 'Online Brokers' started by HowardS, Dec 1, 2016.

  1. Murph

    Murph New Member

    I received this email from Tastyworks today. No change to 10 contracts or less.

    To start off 2018 just right, we want to thank you for your show of unconditional support and irreplaceable loyalty for tastytrade and tastyworks. You are the reason we’re driving change to the financial industry. We’ve not only planned more of what you love, like more live tastytrade shows in 25 cities, more trading tools, more mind-blowing content, more new daily shows – but also stuff that will leave you thinking, “How’d they do THAT?”

    tastyworks introduced zero commissions to close trades on Jan 3rd, 2017. Starting tomorrow, on Jan 2nd, 2018, tastyworks is introducing capped commissions for large option trades. This means the most commission you will pay for any single leg option trade is $10* (plus clearing fees). That’s right, just $10* per leg!

    Eighteen years ago, when we built thinkorswim, 100 option contracts to open and close was $300+. At the time, we thought $1.50 per contract was cheap. Today, the industry average per contract is about $.70 plus a small ticket charge. So, 100 option contracts today is approximately $150 to open and close at most firms. With tastyworks’ new rate schedule, the same trade will cost $10 in commissions to open, zero in commissions to close and a $20 clearing fee for a total of $30. Compare that rate to any other firm on the planet and remember how good our technology and content is as well. Fees for small options trades (10 contracts or less) stay the same.

    But we’re not done. As an added bonus, tastyworks will have twelve monthly drawings for funded accounts (minimum of $2,000) and each month, one customer will win free commissions for 5 years. And no, we haven’t lost our minds. We simply want to do something special and this is just the start.

    On the technology side, tastyworks is releasing a new analysis tab, portfolio margin, options on futures, paper trading, an open API, a new scripting language and lots of new mobile features.
     
    HowardS likes this.
  2. status1

    status1 Well-Known Member

    What about for more than 10 contracts ?

    I am just not clear on what they mean by per leg
    To me that means a spread has 2 legs so $10 each leg
    In the example about the 100 contract there was no mention of the legs but in the announcement they make a clear distinction of saying per leg
    So if each leg has 10 contracts I guess it makes no difference but if for example I have a condor lets say 5/5/5/5 contracts
    So that's 20 contracts but four legs
    How is that calculated ?
     
  3. Murph

    Murph New Member

    I just checked with customer service for confirmation. A 5 lot iron condor, 4 legs, would be $20 commission. This is same as before...$1.00/lot to open and zero to close. A 20 lot would be $40...max $10/leg. Add clearing fees. I'll have to check more on the exact clearing fees. I have accounts both here and TOS. Still do most on TOS, but doing more on Tastyworks.
     
  4. status1

    status1 Well-Known Member

    That sounds like a good deal for someone who trades a lot of contracts
    So a condor with 100/100/100/100 that''s 400 contracts that would be just $40 so that's 10 cents per contract
    I am not sure if this helps out those who trade SPY I guess it depends on how much the other fees add up to
    I don't think it will help me much since I usually trade less than 40 contracts
     
  5. Murph

    Murph New Member

    That's the way it seems to me. I'm doing some weekly calendars in stocks that this may help me, though otherwise I'm usually 10 or fewer contracts. I will check my fees.
     
  6. Rakesh

    Rakesh Active Member

    So I talked to tastyworks about the new commission structure:
    A 1000-lot SPY BF (4000 contracts) would cost $1,183.09:
    $30 in commissions + clearing fees of $800.20 + ORF fees of $344.886 + TAF of $8.002
    If you have .75/contract on SPX, roundtrip for a 100-lot BF would be $600 (300 per)
     
    Mark17 likes this.
  7. status1

    status1 Well-Known Member

    The new Analyze tab is out today
    First impression is pretty much what I have imagined
    It's better than most brokerages which is next to nothing but not as good as TOS although I have not fully tested it
    Hopefully they can tweak it later on to make it better based on users input
     
  8. Robin

    Robin Member

    I reviewed their videos on the analyze tab and played around with it and I thought they did a great job. I changed from TOS to tastyworks over a year ago for the simplicity of orders and they kept their simple theme on the graph. The commission are better for me too.
    The only thing missing is the graph of your total portfolio (next on the list).
    The analyze graph is easy to manipulate. You can change dates, volatility, greeks, positions, add to existing positions to see the change. I can’t really find any faults yet, still testing it.;)
     
  9. status1

    status1 Well-Known Member

    Yes, they have a lot of theo prices which I am not sure if that has any value since you can't get filled at those prices
    They have the p/l but that is just a number so it's not part of the graph
    They need to add another button for the p/l where the greeks are that way you can select which graph you want to look at
    and than you could compare the real p/l to the theo p/l just to see what the difference is but that would be just for reference
    One interesting thing is that you can superimpose the theo p/l with one of the greeks and you can see where the delta for example crosses over the tho p/l Not sure if that has any value but perhaps that could be used as reference adjustment point
     
  10. Robin

    Robin Member

    I am able to show the p/l on the graph as well as the projected p/l .... similar to the T+0 or whatever number you need. You can just scroll the dates and/or volatility.
    There are a lot of features that can be turned on or off.
    You’re right about the greek overlay.... good for adjustments. I will keep playing with it.
     
  11. status1

    status1 Well-Known Member

    Are you looking at the p/l or the theo p/l graph ?
    Is there a setting to change that ?
    I have not found it although I have not played with it long enough
     
  12. Robin

    Robin Member

    From what I see, the orange line is the p/l theo or as we know the T+0 or what ever date we want. If we scroll the dates and/or volatility, it changes the orange line. That is how they explained it. See the pic:

    upload_2018-2-18_19-3-30.png
     
  13. status1

    status1 Well-Known Member

    I understand what you are saying but the Theo p/l is not the same as the t+0 line in TOS
    The one in TOS shows the OPEN p/l which is a lot closer to reality than the theo p/l
    That's why I was saying that I would have preferred to see the open p/l rather than the theo p/l but it's better than nothing at this point
    If you look at the analysis selection control page where you have all the numbers you see in the video a column for open p/l and another for theo p/l and you can see that one shows a small loss while the other shows a small profit which may be ok for one spread but if you increase to lot size that difference can add up to hundreds of dollars
     
  14. status1

    status1 Well-Known Member

    I sent an email to them about this and they replied saying that they will add this to the features request list so I think if more user will ask for this they will add it
    So it's up to us to demand it
     
  15. Robin

    Robin Member

    Just sent my request.

    Thanks!
     

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