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.

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

I log the decimal value. In the cell, I would type in â€ś=17/64â€ť which would calculate the decimal value of 0.265625. With ZB, 1 point = \$1,000.

So premium formula would be â€ś`=K6 * E6 * 1000`â€ť

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.

1 Like

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

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 youâ€™re getting into. Youâ€™ll figure it out.

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

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

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