Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
When you meant futures in those statements, did you mean options on futures? So for example,
62 trades for 386 sell or buy options contracts on futures?
Amazing results. Congrats. Looks like no need for daytrading here. Thanks for posting!
Can you help answer these questions from other members on NexusFi?
Those were 386 futures contracts. And 128 future contracts done as spreads. The 410 were buying options on futures. The 1,621 were selling options on futures.
I do a mixture of types of trading. But my steady income is selling options on futures.
The futures trades were things that come up that I think will work based on fundamentals. Sometimes they work and sometimes they don't. Same for the futures spreads.
Last year I made 6 figures buying options on futures. This year it is a 60k loss.
The thread seemed to have died out but I see a recent flurry of activity which is nice.
Another thought I had on the management side would be to scale in with futures contract(s) when one strike is being approached. I know many say this is risky as the market could reverse the moment after you enter (that's trading) but if you have sold multiple options and one leg is coming under pressure then this could be an alternative which could keep the trade open till expiry rather than closing out in a panic and taking a definate loss.
I recently received the latest email from Mr Cordier with regard to selling Dec Corn Calls.
He is suggesting corn is at or near its peak and to sell calls above 960 (20% OTM) whilst the options are hot from recent volatility.
I have enclosed a chart of December Corn ZW showing the latest delta volume picture.
You can see the sellers from the highs at 848 have have now covered their shorts along with a little fresh buying from the 785 level.
To me this says there are no more sellers left to cover and push prices higher. It will take fresh new buyers to come in to the market to do that. This tends to support what Mr Cordier says at least for the moment.
SPECIAL ANNOUNCEMENT To all Option Seller Newsletter Readers: In honor of our new clearing agreement with FC Stone in Chicago, Liberty Trading Group will be offering a $100,000 "starter" account to new investors for a limited time. If you have ever wanted to work with the authors of The Complete Guide to Option Selling but did not want to commit the $250,000, this is your opportunity to get started selling options with the pros. The starter account will only be available for a limited time. If you are interested in taking advantage of this offer, feel free to contact our offices next week for account forms. Free consultations will be available on a limited basis if you have questions regarding an account.
I note I seem to have dropped off their monthly prospective customer list, which is a shame as it at least gave some ideas as to where to look and when.
Here's a link to Cordier's corn article. Dec Corn futures prices are up 45 cents since he wrote the article. Link
The delta on the Dec 960 calls is up to .2465. No way I touch that with a 10 foot pole. Far too risky. The price of that option has gone UP 50% since he wrote the article.
He says the grain yields are already built in. I disagree because with a drought the yields vary so much by area that it makes it very hard to accurately predict total yields in the US. The crop tours are getting lower numbers than expected. Now we also have drought reducing yields of grains in Russia.
Grains this year are just too volatile. Some times you just need to totally avoid some commodities until they calm down.
