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| author | CoprDistGit <infra@openeuler.org> | 2023-06-20 09:06:40 +0000 |
|---|---|---|
| committer | CoprDistGit <infra@openeuler.org> | 2023-06-20 09:06:40 +0000 |
| commit | dd01bcc244935d88efe3df41187e3488ae5e8771 (patch) | |
| tree | 1099f158990bae8028de9c01fa17e452e7aa3f5d | |
| parent | 194bb74c31b77e97ac76f92da525bbe642949161 (diff) | |
automatic import of python-thetagangopeneuler20.03
| -rw-r--r-- | .gitignore | 1 | ||||
| -rw-r--r-- | python-thetagang.spec | 857 | ||||
| -rw-r--r-- | sources | 1 |
3 files changed, 859 insertions, 0 deletions
@@ -0,0 +1 @@ +/thetagang-1.6.1.tar.gz diff --git a/python-thetagang.spec b/python-thetagang.spec new file mode 100644 index 0000000..96917bc --- /dev/null +++ b/python-thetagang.spec @@ -0,0 +1,857 @@ +%global _empty_manifest_terminate_build 0 +Name: python-thetagang +Version: 1.6.1 +Release: 1 +Summary: ThetaGang is an IBKR bot for getting money +License: AGPL-3.0-only +URL: https://github.com/brndnmtthws/thetagang +Source0: https://mirrors.aliyun.com/pypi/web/packages/7d/1a/4c7e9a243c1e1b9c227687df5a72457b139c2d7fd76ce44d2cdcbb9fd159/thetagang-1.6.1.tar.gz +BuildArch: noarch + +Requires: python3-click +Requires: python3-click-log +Requires: python3-ib_insync +Requires: python3-dateutil +Requires: python3-pytimeparse +Requires: python3-schema +Requires: python3-toml +Requires: python3-rich + +%description +[](https://hub.docker.com/r/brndnmtthws/thetagang) [](https://pypi.org/project/thetagang/) [](https://hub.docker.com/r/brndnmtthws/thetagang) [](https://pypi.python.org/pypi/thetagang/) + +[π¬ Join the Matrix chat, we can get money together](https://matrix.to/#/#thetagang:frens.io). + +# Ξ ThetaGang Ξ + +*Beat the capitalists at their own game with ThetaGang π* + + + +ThetaGang is an [IBKR](https://www.interactivebrokers.com/) trading bot for +collecting premium by selling options using "The Wheel" strategy. The Wheel +is a strategy that [surfaced on +Reddit](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/), +but has been used by many in the past. This bot implements a slightly +modified version of The Wheel, with my own personal tweaks. + +I've been streaming most of the work on this project [on Twitch, so follow me +over there](https://www.twitch.tv/letsmakestuff). + +## How it works + +Start by reading [the Reddit +post](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/) +to get some background. + +The strategy, as implemented here, does a few things differently from the one +described in the post above. For one, it's intended to be used to augment a +typical index-fund based portfolio with specific asset allocations. For +example, you might want to use a 60/40 portfolio with SPY (S&P500 fund) and +TLT (20 year treasury fund). This strategy reduces risk, but may also limit +gains from big market swings. By reducing risk, one can increase leverage. + +The main difference between ThetaGang and simply buying and holding index +funds is that this script will attempt to harvest volatility by selling +options, rather than buying shares directly. This works because implied +volatility is typically higher than realized volatility on average. Instead +of buying shares, you write puts. This has pros and cons, which are outside +the scope of this README. + +You could use this tool on individual stocks, but I personally don't +recommend it because I am not smart enough to understand which stocks to buy. +That's why I just buy index funds. + +ThetaGang will try to acquire your desired allocation of each stock or ETF +according to the weights you specify in the config. To acquire the positions, +the script will write puts when conditions are met (config parameters, adequate +buying power, acceptable contracts are available, enough shares needed, etc). + +ThetaGang will continue to roll any open option positions indefinitely, with the +only exception being ITM puts (although this is configurable). Once puts are in +the money, they will be ignored until they expire and are exercised (after which +you will own the underlying). When rolling puts, the strike of the new contracts +are capped at the old strike plus the premium received (to prevent your account +from blowing due to over-ratcheting up the buying power usage). + +If puts are exercised due to being ITM at expiration, you will own the +stock, and ThetaGang switches from writing puts to writing calls at a strike +at least as high as the average cost of the stock held. + +Please note: this strategy is based on the assumption that implied volatility +is, on average, always higher than realized volatility. In cases where this +is not true, this strategy will cause you to lose money. + +In the case of deep ITM calls, the bot will prefer to roll the calls to next +strike or expiration rather than allowing the underlying to get called away. If you +don't have adequate buying power available in your account, it's possible +that the options may get exercised instead of rolling forward and the process +starts back at the beginning. Please keep in mind this may have tax +implications, but that is outside the scope of this README. + +In normal usage, you would run the script as a cronjob on a daily, weekly, or +monthly basis according to your preferences. Running more frequently than +daily is not recommended, but the choice is yours. + + + +## Project status + +This project is, in its current state, considered to be complete. I'm open +to contributions, but I am unlikely to accept PRs or feature requests that +involve significant changes to the underlying algorithm. + +If you find something that you think is a bug, or some other issue, please +[create a new issue](https://github.com/brndnmtthws/thetagang/issues/new). + +## "Show me your gains bro" β i.e., what are the returns? + +As discussed elsewhere in this README, you must conduct your own research, +and I suggest starting with resources such as CBOE's BXM and BXDM indices, +and comparing those to SPX. I've had a lot of people complain because "that +strategy isn't better than buy and hold BRUH"βlet me assure you, that is not +my goal with this. + +There are conflicting opinions about whether selling options is good or bad, +more or less risky, yadda yadda, but generally the risk profile for covered +calls and naked puts is no worse than the worst case for simply holding an +ETF or stock. In fact, I'd argue that selling a naked put is better than +buying SPY with a limit order, because at least if SPY goes to zero you keep +the premium from selling the option. The main downside is that returns are +capped on the upside. Depending on your goals, this may not matter. If you're +like me, then you'd rather have consistent returns and give up a little bit +of potential upside. + +Generally speaking, the point of selling options is not to exceed the returns +of the underlying, but rather to reduce risk. Reducing risk is an important +feature because it, in turn, allows one to increase risk in other ways +(i.e., allocate higher percentage to stocks or buy riskier assets). + +Whether you use this or not is up to you. I have not one single fuck to give, +whether you use it or not. I am not here to convince you to use it, I merely +want to share knowledge and perhaps help create a little bit of wealth +redistribution. + +π« + +## Requirements + +The bot is based on the [ib_insync](https://github.com/erdewit/ib_insync) +library, and uses [IBC](https://github.com/IbcAlpha/IBC) for managing the API +gateway. + +To use the bot, you'll need an Interactive Brokers account with a working +installation of IBC. If you want to modify the bot, you'll need an +installation of Python 3.8 or newer with the +[`poetry`](https://python-poetry.org/) package manager. + +One more thing: to run this on a live account, you'll require enough capital +to purchase at least 100 shares of the stocks or ETFs you choose. For +example, if SPY is trading at $300/share you'd need $30,000 available. You +can search for lower priced alternatives, but these tend to have low volume +on options which may not be appropriate for this strategy. You should +generally avoid low volume ETFs/stocks. If you don't have that kind of +capital, you'll need to keep renting out your time to the capitalists until +you can become a capitalist yourself. That's the way the pyramid scheme we +call capitalism works. + +## Installation + +*Before running ThetaGang, you should set up an IBKR paper account to test the +code.* + +```console +$ pip install thetagang +``` + +It's recommended you familiarize yourself with +[IBC](https://github.com/IbcAlpha/IBC) so you know how it works. You'll need +to know how to configure the various knows and settings, and make sure things +like API ports are configured correctly. If you don't want to mess around too +much, consider [running ThetaGang with Docker](#running-with-docker). + +## Usage + +```console +$ thetagang -h +``` + +## Up and running with Docker + +My preferred way for running ThetaGang is to use a cronjob to execute Docker +commands. I've built a Docker image as part of this project, which you can +use with your installation. There's a [prebuilt Docker image +here](https://hub.docker.com/repository/docker/brndnmtthws/thetagang). + +To run ThetaGang within Docker, you'll need to pass `config.ini` for [IBC +configuration](https://github.com/IbcAlpha/IBC/blob/master/userguide.md) and +[`thetagang.toml`](/thetagang.toml) for ThetaGang. There's a sample +[`ibc-config.ini`](/ibc-config.ini) included in this repo for your convenience. + +The easiest way to get the config files into the container is by mounting a +volume. + +To get started, grab a copy of `thetagang.toml` and `config.ini`: + +```console +$ mkdir ~/thetagang +$ cd ~/thetagang +$ curl -Lq https://raw.githubusercontent.com/brndnmtthws/thetagang/main/thetagang.toml -o ./thetagang.toml +$ curl -Lq https://raw.githubusercontent.com/brndnmtthws/thetagang/main/ibc-config.ini -o ./config.ini +``` + +Edit `~/thetagang/thetagang.toml` to suit your needs. Pay particular +attention to the symbols and weights. At a minimum, you must change the +username, password, and account number. You may also want to change the +trading move from paper to live when needed. + +Now, to run ThetaGang with Docker: + +```console +$ docker run --rm -i --net host \ + -v ~/thetagang:/etc/thetagang \ + brndnmtthws/thetagang:main \ + --config /etc/thetagang/thetagang.toml +``` + +Lastly, to run ThetaGang as a daily cronjob Monday to Friday at 9am, add +something like this to your crontab (on systems with a cron installation, use +`crontab -e` to edit your crontab): + +```crontab +0 9 * * 1-5 docker run --rm -i -v ~/thetagang:/etc/thetagang brndnmtthws/thetagang:main --config /etc/thetagang/thetagang.toml +``` + +## Determining which ETFs or stocks to run ThetaGang with + +I leave this as an exercise to the reader, however I will provide a few +recommendations and resources: + +### Recommendations + +* Stick with high volume ETFs or stocks +* Careful with margin usage, you'll want to calculate the worst case scenario + and provide plenty of cushion for yourself based on your portfolio + + +### Resources + +* For discussions about selling options, check out + [r/thetagang](https://www.reddit.com/r/thetagang/) +* For backtesting portfolios, you can use [this + tool](https://www.portfoliovisualizer.com/backtest-portfolio) and [this + tool](https://www.portfoliovisualizer.com/optimize-portfolio) to get an idea + of drawdown and typical volatility + +## Development + +Check out the code to your local machine and install the Python dependencies: + +```shell +$ poetry install +$ poetry run autohooks activate +$ poetry run thetagang -h +... +``` + +You are now ready to make a splash! π³ + +## FAQ + +| Error | Cause | Resolution | +| ---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | +| Requested market data is not subscribed. | Requisite market data subscriptions have not been set up on IBKR. | [Configure](https://www.interactivebrokers.com/en/software/am3/am/settings/marketdatasubscriptions.htm) your market data subscriptions. The default config that ships with this script uses the `Cboe One Add-On Bundle` and the `US Equity and Options Add-On Streaming Bundle`. **Note**: You _must_ fund your account before IBKR will send data for subscriptions. Without funding you can still subscribe but you will get an error from ibc. | +| No market data during competing live session | Your account is logged in somewhere else, such as the IBKR web portal, the desktop app, or even another instance of this script. | Log out of all sessions and then re-run the script. | +| `ib_insync.wrapper ERROR Error 200, reqId 10: The contract description specified for SYMBOL is ambiguous.` | IBKR needs to know which exchange is the primary exchange for a given symbol. | You need to specify the primary exchange for the stock. This is normal for companies, typically. For ETFs it usually isn't required. Specify the `primary_exchange` parameter for the symbol, i.e., `primary_exchange = "NYSE"`. | + +## Support and sponsorship + +If you get some value out of this, please consider [sponsoring me](https://github.com/sponsors/brndnmtthws) +to continue maintaining this project well into the future. Like +everyone else in the world, I'm just trying to survive. + +If you like what you see but want something different, I am willing +to work on bespoke or custom trading bots for a fee. Reach out +to me directly through my GitHub profile. + +## Stargazers over time + +[](https://starchart.cc/brndnmtthws/thetagang) + + +%package -n python3-thetagang +Summary: ThetaGang is an IBKR bot for getting money +Provides: python-thetagang +BuildRequires: python3-devel +BuildRequires: python3-setuptools +BuildRequires: python3-pip +%description -n python3-thetagang +[](https://hub.docker.com/r/brndnmtthws/thetagang) [](https://pypi.org/project/thetagang/) [](https://hub.docker.com/r/brndnmtthws/thetagang) [](https://pypi.python.org/pypi/thetagang/) + +[π¬ Join the Matrix chat, we can get money together](https://matrix.to/#/#thetagang:frens.io). + +# Ξ ThetaGang Ξ + +*Beat the capitalists at their own game with ThetaGang π* + + + +ThetaGang is an [IBKR](https://www.interactivebrokers.com/) trading bot for +collecting premium by selling options using "The Wheel" strategy. The Wheel +is a strategy that [surfaced on +Reddit](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/), +but has been used by many in the past. This bot implements a slightly +modified version of The Wheel, with my own personal tweaks. + +I've been streaming most of the work on this project [on Twitch, so follow me +over there](https://www.twitch.tv/letsmakestuff). + +## How it works + +Start by reading [the Reddit +post](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/) +to get some background. + +The strategy, as implemented here, does a few things differently from the one +described in the post above. For one, it's intended to be used to augment a +typical index-fund based portfolio with specific asset allocations. For +example, you might want to use a 60/40 portfolio with SPY (S&P500 fund) and +TLT (20 year treasury fund). This strategy reduces risk, but may also limit +gains from big market swings. By reducing risk, one can increase leverage. + +The main difference between ThetaGang and simply buying and holding index +funds is that this script will attempt to harvest volatility by selling +options, rather than buying shares directly. This works because implied +volatility is typically higher than realized volatility on average. Instead +of buying shares, you write puts. This has pros and cons, which are outside +the scope of this README. + +You could use this tool on individual stocks, but I personally don't +recommend it because I am not smart enough to understand which stocks to buy. +That's why I just buy index funds. + +ThetaGang will try to acquire your desired allocation of each stock or ETF +according to the weights you specify in the config. To acquire the positions, +the script will write puts when conditions are met (config parameters, adequate +buying power, acceptable contracts are available, enough shares needed, etc). + +ThetaGang will continue to roll any open option positions indefinitely, with the +only exception being ITM puts (although this is configurable). Once puts are in +the money, they will be ignored until they expire and are exercised (after which +you will own the underlying). When rolling puts, the strike of the new contracts +are capped at the old strike plus the premium received (to prevent your account +from blowing due to over-ratcheting up the buying power usage). + +If puts are exercised due to being ITM at expiration, you will own the +stock, and ThetaGang switches from writing puts to writing calls at a strike +at least as high as the average cost of the stock held. + +Please note: this strategy is based on the assumption that implied volatility +is, on average, always higher than realized volatility. In cases where this +is not true, this strategy will cause you to lose money. + +In the case of deep ITM calls, the bot will prefer to roll the calls to next +strike or expiration rather than allowing the underlying to get called away. If you +don't have adequate buying power available in your account, it's possible +that the options may get exercised instead of rolling forward and the process +starts back at the beginning. Please keep in mind this may have tax +implications, but that is outside the scope of this README. + +In normal usage, you would run the script as a cronjob on a daily, weekly, or +monthly basis according to your preferences. Running more frequently than +daily is not recommended, but the choice is yours. + + + +## Project status + +This project is, in its current state, considered to be complete. I'm open +to contributions, but I am unlikely to accept PRs or feature requests that +involve significant changes to the underlying algorithm. + +If you find something that you think is a bug, or some other issue, please +[create a new issue](https://github.com/brndnmtthws/thetagang/issues/new). + +## "Show me your gains bro" β i.e., what are the returns? + +As discussed elsewhere in this README, you must conduct your own research, +and I suggest starting with resources such as CBOE's BXM and BXDM indices, +and comparing those to SPX. I've had a lot of people complain because "that +strategy isn't better than buy and hold BRUH"βlet me assure you, that is not +my goal with this. + +There are conflicting opinions about whether selling options is good or bad, +more or less risky, yadda yadda, but generally the risk profile for covered +calls and naked puts is no worse than the worst case for simply holding an +ETF or stock. In fact, I'd argue that selling a naked put is better than +buying SPY with a limit order, because at least if SPY goes to zero you keep +the premium from selling the option. The main downside is that returns are +capped on the upside. Depending on your goals, this may not matter. If you're +like me, then you'd rather have consistent returns and give up a little bit +of potential upside. + +Generally speaking, the point of selling options is not to exceed the returns +of the underlying, but rather to reduce risk. Reducing risk is an important +feature because it, in turn, allows one to increase risk in other ways +(i.e., allocate higher percentage to stocks or buy riskier assets). + +Whether you use this or not is up to you. I have not one single fuck to give, +whether you use it or not. I am not here to convince you to use it, I merely +want to share knowledge and perhaps help create a little bit of wealth +redistribution. + +π« + +## Requirements + +The bot is based on the [ib_insync](https://github.com/erdewit/ib_insync) +library, and uses [IBC](https://github.com/IbcAlpha/IBC) for managing the API +gateway. + +To use the bot, you'll need an Interactive Brokers account with a working +installation of IBC. If you want to modify the bot, you'll need an +installation of Python 3.8 or newer with the +[`poetry`](https://python-poetry.org/) package manager. + +One more thing: to run this on a live account, you'll require enough capital +to purchase at least 100 shares of the stocks or ETFs you choose. For +example, if SPY is trading at $300/share you'd need $30,000 available. You +can search for lower priced alternatives, but these tend to have low volume +on options which may not be appropriate for this strategy. You should +generally avoid low volume ETFs/stocks. If you don't have that kind of +capital, you'll need to keep renting out your time to the capitalists until +you can become a capitalist yourself. That's the way the pyramid scheme we +call capitalism works. + +## Installation + +*Before running ThetaGang, you should set up an IBKR paper account to test the +code.* + +```console +$ pip install thetagang +``` + +It's recommended you familiarize yourself with +[IBC](https://github.com/IbcAlpha/IBC) so you know how it works. You'll need +to know how to configure the various knows and settings, and make sure things +like API ports are configured correctly. If you don't want to mess around too +much, consider [running ThetaGang with Docker](#running-with-docker). + +## Usage + +```console +$ thetagang -h +``` + +## Up and running with Docker + +My preferred way for running ThetaGang is to use a cronjob to execute Docker +commands. I've built a Docker image as part of this project, which you can +use with your installation. There's a [prebuilt Docker image +here](https://hub.docker.com/repository/docker/brndnmtthws/thetagang). + +To run ThetaGang within Docker, you'll need to pass `config.ini` for [IBC +configuration](https://github.com/IbcAlpha/IBC/blob/master/userguide.md) and +[`thetagang.toml`](/thetagang.toml) for ThetaGang. There's a sample +[`ibc-config.ini`](/ibc-config.ini) included in this repo for your convenience. + +The easiest way to get the config files into the container is by mounting a +volume. + +To get started, grab a copy of `thetagang.toml` and `config.ini`: + +```console +$ mkdir ~/thetagang +$ cd ~/thetagang +$ curl -Lq https://raw.githubusercontent.com/brndnmtthws/thetagang/main/thetagang.toml -o ./thetagang.toml +$ curl -Lq https://raw.githubusercontent.com/brndnmtthws/thetagang/main/ibc-config.ini -o ./config.ini +``` + +Edit `~/thetagang/thetagang.toml` to suit your needs. Pay particular +attention to the symbols and weights. At a minimum, you must change the +username, password, and account number. You may also want to change the +trading move from paper to live when needed. + +Now, to run ThetaGang with Docker: + +```console +$ docker run --rm -i --net host \ + -v ~/thetagang:/etc/thetagang \ + brndnmtthws/thetagang:main \ + --config /etc/thetagang/thetagang.toml +``` + +Lastly, to run ThetaGang as a daily cronjob Monday to Friday at 9am, add +something like this to your crontab (on systems with a cron installation, use +`crontab -e` to edit your crontab): + +```crontab +0 9 * * 1-5 docker run --rm -i -v ~/thetagang:/etc/thetagang brndnmtthws/thetagang:main --config /etc/thetagang/thetagang.toml +``` + +## Determining which ETFs or stocks to run ThetaGang with + +I leave this as an exercise to the reader, however I will provide a few +recommendations and resources: + +### Recommendations + +* Stick with high volume ETFs or stocks +* Careful with margin usage, you'll want to calculate the worst case scenario + and provide plenty of cushion for yourself based on your portfolio + + +### Resources + +* For discussions about selling options, check out + [r/thetagang](https://www.reddit.com/r/thetagang/) +* For backtesting portfolios, you can use [this + tool](https://www.portfoliovisualizer.com/backtest-portfolio) and [this + tool](https://www.portfoliovisualizer.com/optimize-portfolio) to get an idea + of drawdown and typical volatility + +## Development + +Check out the code to your local machine and install the Python dependencies: + +```shell +$ poetry install +$ poetry run autohooks activate +$ poetry run thetagang -h +... +``` + +You are now ready to make a splash! π³ + +## FAQ + +| Error | Cause | Resolution | +| ---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | +| Requested market data is not subscribed. | Requisite market data subscriptions have not been set up on IBKR. | [Configure](https://www.interactivebrokers.com/en/software/am3/am/settings/marketdatasubscriptions.htm) your market data subscriptions. The default config that ships with this script uses the `Cboe One Add-On Bundle` and the `US Equity and Options Add-On Streaming Bundle`. **Note**: You _must_ fund your account before IBKR will send data for subscriptions. Without funding you can still subscribe but you will get an error from ibc. | +| No market data during competing live session | Your account is logged in somewhere else, such as the IBKR web portal, the desktop app, or even another instance of this script. | Log out of all sessions and then re-run the script. | +| `ib_insync.wrapper ERROR Error 200, reqId 10: The contract description specified for SYMBOL is ambiguous.` | IBKR needs to know which exchange is the primary exchange for a given symbol. | You need to specify the primary exchange for the stock. This is normal for companies, typically. For ETFs it usually isn't required. Specify the `primary_exchange` parameter for the symbol, i.e., `primary_exchange = "NYSE"`. | + +## Support and sponsorship + +If you get some value out of this, please consider [sponsoring me](https://github.com/sponsors/brndnmtthws) +to continue maintaining this project well into the future. Like +everyone else in the world, I'm just trying to survive. + +If you like what you see but want something different, I am willing +to work on bespoke or custom trading bots for a fee. Reach out +to me directly through my GitHub profile. + +## Stargazers over time + +[](https://starchart.cc/brndnmtthws/thetagang) + + +%package help +Summary: Development documents and examples for thetagang +Provides: python3-thetagang-doc +%description help +[](https://hub.docker.com/r/brndnmtthws/thetagang) [](https://pypi.org/project/thetagang/) [](https://hub.docker.com/r/brndnmtthws/thetagang) [](https://pypi.python.org/pypi/thetagang/) + +[π¬ Join the Matrix chat, we can get money together](https://matrix.to/#/#thetagang:frens.io). + +# Ξ ThetaGang Ξ + +*Beat the capitalists at their own game with ThetaGang π* + + + +ThetaGang is an [IBKR](https://www.interactivebrokers.com/) trading bot for +collecting premium by selling options using "The Wheel" strategy. The Wheel +is a strategy that [surfaced on +Reddit](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/), +but has been used by many in the past. This bot implements a slightly +modified version of The Wheel, with my own personal tweaks. + +I've been streaming most of the work on this project [on Twitch, so follow me +over there](https://www.twitch.tv/letsmakestuff). + +## How it works + +Start by reading [the Reddit +post](https://www.reddit.com/r/options/comments/a36k4j/the_wheel_aka_triple_income_strategy_explained/) +to get some background. + +The strategy, as implemented here, does a few things differently from the one +described in the post above. For one, it's intended to be used to augment a +typical index-fund based portfolio with specific asset allocations. For +example, you might want to use a 60/40 portfolio with SPY (S&P500 fund) and +TLT (20 year treasury fund). This strategy reduces risk, but may also limit +gains from big market swings. By reducing risk, one can increase leverage. + +The main difference between ThetaGang and simply buying and holding index +funds is that this script will attempt to harvest volatility by selling +options, rather than buying shares directly. This works because implied +volatility is typically higher than realized volatility on average. Instead +of buying shares, you write puts. This has pros and cons, which are outside +the scope of this README. + +You could use this tool on individual stocks, but I personally don't +recommend it because I am not smart enough to understand which stocks to buy. +That's why I just buy index funds. + +ThetaGang will try to acquire your desired allocation of each stock or ETF +according to the weights you specify in the config. To acquire the positions, +the script will write puts when conditions are met (config parameters, adequate +buying power, acceptable contracts are available, enough shares needed, etc). + +ThetaGang will continue to roll any open option positions indefinitely, with the +only exception being ITM puts (although this is configurable). Once puts are in +the money, they will be ignored until they expire and are exercised (after which +you will own the underlying). When rolling puts, the strike of the new contracts +are capped at the old strike plus the premium received (to prevent your account +from blowing due to over-ratcheting up the buying power usage). + +If puts are exercised due to being ITM at expiration, you will own the +stock, and ThetaGang switches from writing puts to writing calls at a strike +at least as high as the average cost of the stock held. + +Please note: this strategy is based on the assumption that implied volatility +is, on average, always higher than realized volatility. In cases where this +is not true, this strategy will cause you to lose money. + +In the case of deep ITM calls, the bot will prefer to roll the calls to next +strike or expiration rather than allowing the underlying to get called away. If you +don't have adequate buying power available in your account, it's possible +that the options may get exercised instead of rolling forward and the process +starts back at the beginning. Please keep in mind this may have tax +implications, but that is outside the scope of this README. + +In normal usage, you would run the script as a cronjob on a daily, weekly, or +monthly basis according to your preferences. Running more frequently than +daily is not recommended, but the choice is yours. + + + +## Project status + +This project is, in its current state, considered to be complete. I'm open +to contributions, but I am unlikely to accept PRs or feature requests that +involve significant changes to the underlying algorithm. + +If you find something that you think is a bug, or some other issue, please +[create a new issue](https://github.com/brndnmtthws/thetagang/issues/new). + +## "Show me your gains bro" β i.e., what are the returns? + +As discussed elsewhere in this README, you must conduct your own research, +and I suggest starting with resources such as CBOE's BXM and BXDM indices, +and comparing those to SPX. I've had a lot of people complain because "that +strategy isn't better than buy and hold BRUH"βlet me assure you, that is not +my goal with this. + +There are conflicting opinions about whether selling options is good or bad, +more or less risky, yadda yadda, but generally the risk profile for covered +calls and naked puts is no worse than the worst case for simply holding an +ETF or stock. In fact, I'd argue that selling a naked put is better than +buying SPY with a limit order, because at least if SPY goes to zero you keep +the premium from selling the option. The main downside is that returns are +capped on the upside. Depending on your goals, this may not matter. If you're +like me, then you'd rather have consistent returns and give up a little bit +of potential upside. + +Generally speaking, the point of selling options is not to exceed the returns +of the underlying, but rather to reduce risk. Reducing risk is an important +feature because it, in turn, allows one to increase risk in other ways +(i.e., allocate higher percentage to stocks or buy riskier assets). + +Whether you use this or not is up to you. I have not one single fuck to give, +whether you use it or not. I am not here to convince you to use it, I merely +want to share knowledge and perhaps help create a little bit of wealth +redistribution. + +π« + +## Requirements + +The bot is based on the [ib_insync](https://github.com/erdewit/ib_insync) +library, and uses [IBC](https://github.com/IbcAlpha/IBC) for managing the API +gateway. + +To use the bot, you'll need an Interactive Brokers account with a working +installation of IBC. If you want to modify the bot, you'll need an +installation of Python 3.8 or newer with the +[`poetry`](https://python-poetry.org/) package manager. + +One more thing: to run this on a live account, you'll require enough capital +to purchase at least 100 shares of the stocks or ETFs you choose. For +example, if SPY is trading at $300/share you'd need $30,000 available. You +can search for lower priced alternatives, but these tend to have low volume +on options which may not be appropriate for this strategy. You should +generally avoid low volume ETFs/stocks. If you don't have that kind of +capital, you'll need to keep renting out your time to the capitalists until +you can become a capitalist yourself. That's the way the pyramid scheme we +call capitalism works. + +## Installation + +*Before running ThetaGang, you should set up an IBKR paper account to test the +code.* + +```console +$ pip install thetagang +``` + +It's recommended you familiarize yourself with +[IBC](https://github.com/IbcAlpha/IBC) so you know how it works. You'll need +to know how to configure the various knows and settings, and make sure things +like API ports are configured correctly. If you don't want to mess around too +much, consider [running ThetaGang with Docker](#running-with-docker). + +## Usage + +```console +$ thetagang -h +``` + +## Up and running with Docker + +My preferred way for running ThetaGang is to use a cronjob to execute Docker +commands. I've built a Docker image as part of this project, which you can +use with your installation. There's a [prebuilt Docker image +here](https://hub.docker.com/repository/docker/brndnmtthws/thetagang). + +To run ThetaGang within Docker, you'll need to pass `config.ini` for [IBC +configuration](https://github.com/IbcAlpha/IBC/blob/master/userguide.md) and +[`thetagang.toml`](/thetagang.toml) for ThetaGang. There's a sample +[`ibc-config.ini`](/ibc-config.ini) included in this repo for your convenience. + +The easiest way to get the config files into the container is by mounting a +volume. + +To get started, grab a copy of `thetagang.toml` and `config.ini`: + +```console +$ mkdir ~/thetagang +$ cd ~/thetagang +$ curl -Lq https://raw.githubusercontent.com/brndnmtthws/thetagang/main/thetagang.toml -o ./thetagang.toml +$ curl -Lq https://raw.githubusercontent.com/brndnmtthws/thetagang/main/ibc-config.ini -o ./config.ini +``` + +Edit `~/thetagang/thetagang.toml` to suit your needs. Pay particular +attention to the symbols and weights. At a minimum, you must change the +username, password, and account number. You may also want to change the +trading move from paper to live when needed. + +Now, to run ThetaGang with Docker: + +```console +$ docker run --rm -i --net host \ + -v ~/thetagang:/etc/thetagang \ + brndnmtthws/thetagang:main \ + --config /etc/thetagang/thetagang.toml +``` + +Lastly, to run ThetaGang as a daily cronjob Monday to Friday at 9am, add +something like this to your crontab (on systems with a cron installation, use +`crontab -e` to edit your crontab): + +```crontab +0 9 * * 1-5 docker run --rm -i -v ~/thetagang:/etc/thetagang brndnmtthws/thetagang:main --config /etc/thetagang/thetagang.toml +``` + +## Determining which ETFs or stocks to run ThetaGang with + +I leave this as an exercise to the reader, however I will provide a few +recommendations and resources: + +### Recommendations + +* Stick with high volume ETFs or stocks +* Careful with margin usage, you'll want to calculate the worst case scenario + and provide plenty of cushion for yourself based on your portfolio + + +### Resources + +* For discussions about selling options, check out + [r/thetagang](https://www.reddit.com/r/thetagang/) +* For backtesting portfolios, you can use [this + tool](https://www.portfoliovisualizer.com/backtest-portfolio) and [this + tool](https://www.portfoliovisualizer.com/optimize-portfolio) to get an idea + of drawdown and typical volatility + +## Development + +Check out the code to your local machine and install the Python dependencies: + +```shell +$ poetry install +$ poetry run autohooks activate +$ poetry run thetagang -h +... +``` + +You are now ready to make a splash! π³ + +## FAQ + +| Error | Cause | Resolution | +| ---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | +| Requested market data is not subscribed. | Requisite market data subscriptions have not been set up on IBKR. | [Configure](https://www.interactivebrokers.com/en/software/am3/am/settings/marketdatasubscriptions.htm) your market data subscriptions. The default config that ships with this script uses the `Cboe One Add-On Bundle` and the `US Equity and Options Add-On Streaming Bundle`. **Note**: You _must_ fund your account before IBKR will send data for subscriptions. Without funding you can still subscribe but you will get an error from ibc. | +| No market data during competing live session | Your account is logged in somewhere else, such as the IBKR web portal, the desktop app, or even another instance of this script. | Log out of all sessions and then re-run the script. | +| `ib_insync.wrapper ERROR Error 200, reqId 10: The contract description specified for SYMBOL is ambiguous.` | IBKR needs to know which exchange is the primary exchange for a given symbol. | You need to specify the primary exchange for the stock. This is normal for companies, typically. For ETFs it usually isn't required. Specify the `primary_exchange` parameter for the symbol, i.e., `primary_exchange = "NYSE"`. | + +## Support and sponsorship + +If you get some value out of this, please consider [sponsoring me](https://github.com/sponsors/brndnmtthws) +to continue maintaining this project well into the future. Like +everyone else in the world, I'm just trying to survive. + +If you like what you see but want something different, I am willing +to work on bespoke or custom trading bots for a fee. Reach out +to me directly through my GitHub profile. + +## Stargazers over time + +[](https://starchart.cc/brndnmtthws/thetagang) + + +%prep +%autosetup -n thetagang-1.6.1 + +%build +%py3_build + +%install +%py3_install +install -d -m755 %{buildroot}/%{_pkgdocdir} +if [ -d doc ]; then cp -arf doc %{buildroot}/%{_pkgdocdir}; fi +if [ -d docs ]; then cp -arf docs %{buildroot}/%{_pkgdocdir}; fi +if [ -d example ]; then cp -arf example %{buildroot}/%{_pkgdocdir}; fi +if [ -d examples ]; then cp -arf examples %{buildroot}/%{_pkgdocdir}; fi +pushd %{buildroot} +if [ -d usr/lib ]; then + find usr/lib -type f -printf "\"/%h/%f\"\n" >> filelist.lst +fi +if [ -d usr/lib64 ]; then + find usr/lib64 -type f -printf "\"/%h/%f\"\n" >> filelist.lst +fi +if [ -d usr/bin ]; then + find usr/bin -type f -printf "\"/%h/%f\"\n" >> filelist.lst +fi +if [ -d usr/sbin ]; then + find usr/sbin -type f -printf "\"/%h/%f\"\n" >> filelist.lst +fi +touch doclist.lst +if [ -d usr/share/man ]; then + find usr/share/man -type f -printf "\"/%h/%f.gz\"\n" >> doclist.lst +fi +popd +mv %{buildroot}/filelist.lst . +mv %{buildroot}/doclist.lst . + +%files -n python3-thetagang -f filelist.lst +%dir %{python3_sitelib}/* + +%files help -f doclist.lst +%{_docdir}/* + +%changelog +* Tue Jun 20 2023 Python_Bot <Python_Bot@openeuler.org> - 1.6.1-1 +- Package Spec generated @@ -0,0 +1 @@ +ac25ef539b10a2e437414cd0d96aa4e2 thetagang-1.6.1.tar.gz |