CreateSyntheticOption and Raw Profit Mode
Author: cmtn
Creation Date: 11/18/2017 9:22 PM
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cmtn

#1
I'm testing options with CreateSyntheticOption. I am using raw profit mode of $1,000.

I see that it bought 8* $1.66 per share = $1,328.

Why is this so much more than $1,000? For example 6*1.66 = 996. It seems like it should trade 6 shares (contracts) instead of 8. Per help: "The number of shares is determined by dividing the position's basis price into the selected amount.". Am I doing something wrong?

This caught my eye because I have losses exceeding $1,000.

Also, it appears that if I use position size of 1 share/contract, it is one option share. If I change it to 100, it looks like it is trading 10 contracts instead. Is this right?

Thanks
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Eugene

#2
QUOTE:
Why is this so much more than $1,000? For example 6*1.66 = 996. It seems like it should trade 6 shares (contracts) instead of 8. Per help: "The number of shares is determined by dividing the position's basis price into the selected amount.". Am I doing something wrong?

Was there a gap up on the day it bought at $1.66? If the close price of the preceding trading session was more like $1.25 then this explains what you see. $1.25 * 800 = $10K. The basis price would be ~$1.25.

QUOTE:
Also, it appears that if I use position size of 1 share/contract, it is one option share. If I change it to 100, it looks like it is trading 10 contracts instead. Is this right?

I can't see how it looks like on your end but if you follow my suggestion from the support ticket and provide more details to illustrate (Strategy code, symbol you apply it to, settings) we might be able to reproduce and understand. Thanks.