
# November OptionWorkshop updates 🍂

We continue to stabilize existing functionality and meticulously, step by step, implement new, useful features with a single aim: to ease the life of options traders. Take a look at what we accomplished in November.

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## New features

- Adapters list now has an edit button in each row.

  ![Transport settings](settings.png){.thumb}

- When any position in a strategy is modified, the chart's zoom (if any) will be automatically reset to the default state.
- Complicated what-if scenarios, where user can set up IV for particular strikes are now back again.
- Context menu with a list of spreads templates have a new item that invokes the templates manager window.

  ![Templates manager](temp-manager.png){.thumb}

- Position row context menu now contains the Options desk item that invokes a desk of the corresponding series.
- Positions table has a new column with realized P&L.
- Status bar now contains more information about license.

  ![License link](license1.png){.thumb}

  ![License settings](license2.png){.thumb}

- TeamViewer launch button has a blue color.
- To delete a position, the user now has to confirm the operation.

## Bug fixes

- Fixed a set of problems with launching software under some versions of Windows, including Win7 and some server builds.
- Fixed an error that prevented users from opening the commissions setting window.
- Fixed an error that prevented users from opening the log file.
- Fixed an error that was breaking the strategy chart if some specific price range was selected.
- Fixed the logic of P&L (C) and P&L (S) calculation.
- Fixed several problems with manual changing of position price and quantity.
- Fixed several problems with the process of position deletion.



# One Easy fix for traders getting stopped out too early or cutting profits too soon

If you’ve traded actively for at least a few months or years, you’ll know all too often the agony that comes
with getting stopped out of a position and immediately, the trade takes off.
A similar but lesser form of agony is felt when a trade has hit your price target and you proudly sell your position.
Except, it keeps going and going...

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I know I’ve felt these emotions more times than I can count.
If only there was some magic indicator which would give me the expected range of the overall market,
I could better set my stop loss and profit taking levels.

Fortunately, I eventually figured out that the VIX index is a simple and solid indicator for this.
[What is the VIX index?](http://www.investopedia.com/terms/v/vix.asp)

I instinctively check VIX throughout the day to make sure it is within "normal ranges" when putting on and taking off trades.
Just take a look at the below chart:

![](chart-1024x588.jpg)
Figure: Data: January 2, 2004 – December 16, 2016

Whenever the VIX is under 17, the S&P500 daily range averages less than 1% (High of day minus Low of day).
And most of the time the VIX is under 14, the S&P500 range averages less than 0.7%.
However, when the index is trading close to 17 or higher, more extreme moves in the S&P500 can be expected with much greater predictability.

Here is a breakdown of the graph in table format:

| VIX Values     | S&P 500 H-L Averages | # of Occurrences | %age of Occurrences |
| -------------- | -------------------- | ---------------- | ------------------- |
| under 11.01    | 0.61%                | 92               | 2.8%                |
| 11.01-14.00    | 0.74%                | 919              | 28.2%               |
| 14.01-17.00    | 0.96%                | 793              | 24.3%               |
| 17.01-23.00    | 1.22%                | 768              | 23.5%               |
| 23.01-30.00    | 1.78%                | 397              | 12.2%               |
| 30.01 and over | 3.35%                | 295              | 9.0%                |

Even traders who do not trade options must pay close attention to the VIX index to avoid exiting positions too early and getting whipsawed.
Equally important, when volatility is low, don’t expect big moves especially in names highly correlated
to the S&P500 index in terms of direction and beta.
In low volatility environments, you must take profits earlier and keep a tighter stop loss.

Here, we’ve provided an easy way to roughly gauge the market ranges for the day, but we could of course dig much deeper.
For instance, we could combine volume, sector and many other factors
in our analysis and come up with more accurate measures of range not just for the overall market,
but also for certain sectors and stocks.

Perhaps, in the future, this analysis will come, but for now, pay attention to the VIX.

Until next time….Always stick with your risk limits and Happy Trading!


Blog #p&l

November OptionWorkshop updates 🍂

One Easy fix for traders getting stopped out too early or cutting profits too soon…

Last thing