Options Trading Journal

options-trading-journal

In this article, I’ll show you how to properly add your options trades and make the most out of our options trading journal.

Trademetria fully supports options even complex strategies, but they must be properly entered into the system.

What Trademetria doesn’t support at the moment is options on futures contracts.

How to enter options trades manually

If you are not an active trader, perhaps importing your trades manually will be the best way to go. To do so, go to Import, then choose the Manual Entry tab. Be sure to add your options trades in the proper format. Trademetria works with several options formats, but we have a format that will automatically recognize your options type, strike price, strike date and in some cases your strategy/spread and you won’t have to input them manually. Let’s look at a few examples:

Best / recommended format to recognize your options specifications:

MSFT-02252020-124.4-CALL
MSFT-02252020-124.4-CALL-VERTICAL

Using the above specs, our system will automatically detect your options type, strike price/date and strategy used.

Other valid formats:

  1. MSFT29JAN19-134-CALL
  2. MSFT 29 Jan 19 134 Call
  3. MSFT-29JAN19-134-CALL-BUTTERFLY

Adding advanced options strategies manually

If you want to add a butterfly trade that consists of 6 legs, you can add each leg individually or sum up the credit or debit and add only two legs (a buy and a sell). Both ways will show you the correct pnl.

Let’s look at an example:

options-trading-journal-butterfly

Above, instead of adding all individual legs of the butterfly, only two were added with a .15 credit difference among all legs.

How to enter trades from your broker

We work with dozens of options brokers, most notably:

  • ThinkorSwim
  • Tastyworks
  • Interactive Brokers
  • eOptions
  • Ally Invest
  • Robinhood
  • Schwab
  • Fidelity
  • Etrade
  • Questrade
  • Tradestation
  • Webull
  • Tradezero

For a complete list, visit our help page.

If you use Thinkorswim, read below, else skip to the next section of this post.

When you use the broker import option, Trademetria will automatically recognize your options trades, but only Thinkorswim will let us automatically recognize your strategies. You can group your strategies manually if you trade using other brokers.

TD Ameritrade / Thinkorswim exports a long statement that is broken down into 2 important pieces that we use to compute your results and metrics. Each piece of the statement is processed differently and separately on our system. You can find import options for these by the name of “TD Ameritrade / ThinkorSwim” and “TD Ameritrade / ThinkorSwim (Advanced Options)”. The first option will pickup your fees and commissions but it only works for simple options strategies. The system will block you from importing if you have advanced options strategies like a butterfly.

The second method won’t pickup your commissions, but they can be set by going to your “Accounts and Fees” page. You can then check the box “Add default commissions” when importing using this method or track gross pnl only.  Also, it may give you a loss in one leg and a profit in another giving you false win ratio metrics, but the total pnl will be correct.

If you only trade simple strategies like weeklys and verticals or simple buy and sells, you can use the first TD Ameritrade & Thinkorswim import option because it will also track your exact commission costs.

Your TOS balance won’t match our system exactly due to different commissions and fees, but should be very close. If it’s not, there are several reasons your balance may not match including open positions, expired/assigned options that weren’t taken care, splits, dividends, deposits and withdrawals, etc. We have advanced tools to sort all this out, but it could take you a while if you uploaded lots of trades. You can always start importing from a day you were flat recently and track it from that point.

How to tag your trades for proper options strategy/spread identification and calculations

As of June,1st 2020, you can use the options strategy field to tag your strategy/spread. You no longer need to use tags. 

At Trademetria, you can tag your trades with the options strategy used. By doing so, you will know what strategies are performing best.

Now, let’s say you use Tastyworks and you want to track the pnl of your advanced options strategies like a butterfly or simpler spreads. Tastyworks won’t disclose what options strategy you used and as you can see in the image below, it’s hard to spot your butterfly trade. In this case, import your trades as you normally would. Then, go to your trades page, click manage trades, select “tag multiple trades at once”, select all your butterfly related trades, hit apply and it will ask you to name your strategy. Type butterfly. Now your options trade is properly categorized and identified and you can run reports based on these tags to find out if your strategies are working. In the image below, you can see all the butterfly trades even without your broker telling us what strategy you traded.

options-trading-journal-tagging-strategies

How to expire or assign options

Sometimes you will want to expire or assign options, especially if you import a lot of trades at once. Since most brokers don’t export expired options, it’s up to you to do so. If you end up with open positions that are due to expirations or assignments, go to your Portfolio page, then use the icons that are displayed under options (see image below) to expire or assign your options with about 2 clicks.

If you have too many options to expire, there is also an “Expire all options” button on the “Portfolio” page.

options-trading-journal-expiration

Going long puts/short calls and how it affects long/short metric

Among many metrics that our system computes, one of them is how much money you made going long vs short and this metric can be affected when you long puts or short calls. If you go long a put and the underlying asset goes down, you make money on a long trade even though you “went” short the underlying asset. Be aware of this when analyzing this metric.

Advanced Filtering Options

Lastly, if you want to filter your options contracts by the underlying or strategy, you can use the top filters on the “my trades” page.  You can also add options related columns like strike date and strategy to sort your trades even further.

You can start your options trading journal today with a free account by going to //www.trademetria.com/signup 

Options Trading Journal
5 (100%) 14 votes

  • E1

    does it support only single leg option contracts, or many spread combinations?

    • Thiago Ghilardi

      A bit late for an answer, but yes, it supports spread combinations.