How to calculate ZB bonds Premium collected into dollars for spreadsheet

Investing Strategies Options - You Make the Call
1

Hello

I have recently started selling strangles on ZB US treasury bonds. I am trying to work out how to convert the 17/64 price I got to dollars for my spreadsheet. I am also trying to work out an excel formula to calculate the total premium collected for the short strangle trade. The price paid is as above.

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above is the spreadsheet. I am trying to workout the total premium received in a excel formula.

The current formula I have for the Premium cell is =K6E631.25*0.5

if anyone can help that would be great. @exsanguinator

2

I log the decimal value. In the cell, I would type in “=17/64” which would calculate the decimal value of 0.265625. With ZB, 1 point = $1,000.

So premium formula would be “=K6 * E6 * 1000”

ProTip: I use Google sheets and can import a csv url into a reference sheet. Tasty has a csv online with specs for futures. One can import this into a sheet and reference the cells for different calculations.

=IMPORTDATA(“https://docs.google.com/spreadsheets/d/e/2PACX-1vR-FaJwzEq8qMnBrlLvrb8gu1V2-0z97TSvqj-e5oLBVqlSfXAOwzps_DqzlXDgjv9kGeRioFJMF-Be/pub?gid=579860838&single=true&output=csv”)

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3

Perfect, thank you so much. Works perfect. First time trading bonds so was not sure how the calculations worked. I know you explained really well stop losses for me on another thread, that has help me trade safely. Regarding this ZB bond, how would you suggest I calculate a 2 x the premium stop loss. I use TWS.

I have 3 contracts. This would equal a premium of: 0.26562510003

= a premium of $796.99

4

When trading a new instrument, I recommend trading 1 lots before stepping up to multiple contracts.

Experiment with different stop loss parameters so you can find out for yourself exactly what you’re getting into. You’ll figure it out.

Also, for a more active community, check out r/thetagang on reddit. You’ll learn more there and also get good tips (and bad ones too).

https://www.reddit.com/r/thetagang

5

Great, thanks for the link. I’ll check them out. Trading is alway more fun when you got someone to bounce ideas around with. Appreciate it.