Oh definitely. I only grabbed that one as it had OI over 5k, and I wanted to watch how it would react on my tos platform. I experimented with these on /ZB many years ago, but gave them up as I was still trading pretty small. OX should be funded by the end of the month, so I can cross compare both platforms.
(Any questions specifically related to my website, please send me a private message only.)
"Obstacles are those frightful things you see when you take your eyes off your goal." -- Henry Ford
I always have the puts in the 75 area in my cross-hairs but I'm looking for price to retreat back into the 90's. I think the threat in the Middle East is keeping prices elevated here. When that calms down CL might see a pull back. The hurricane season has been in a lull, so far, and storms in the Gulf of Mex will spike prices because the oil platforms can be shut down limiting drilling which always pushes things up somewhat. Prices have fallen back a few dollars the past few days and if they get back up to the 107 area or so then I'll look at the 135's or 140's to sell again pending the news that moves prices back up.
In my ever humbling opinion... I personally think that CL is one of the best markets to sell options against.
Kevin, my main surprise was that your strike is higher than any strikes I have on. None over 1400.
My research yesterday found that the ROI was highest for ES puts that were 335 less than futures. 285 & 385 had lower ROI. 385 OTM were significantly lower. 285 OTM was slightly lower than 335 OTM.
I used 1685 ES futures and 1300, 1350, 1400 Oct puts and 100 or less DTE. Best ROI for the 1350s was on at 2.60 to 1.90 (delta 0.031 to 0.028) and off at 0.35 to 0.25. This was assuming flat ES futures.
Putting on puts at those strikes at a price higher than 2.60 gave a lower ROI because of greater DTE, which caused the margin to be higher. You have to go to 100 DTE to get a premium of 3.50 on a 1350 put when futures are 1685.
The time erosion of the premium hits hardest when the prices go from 1.25 to 0.25. Or when the delta goes from 0.015 to 0.005.
The following 4 users say Thank You to ron99 for this post:
Great stuff, thanks for sharing! I'll have to follow this, should I trade ES puts in the future. I love that they have volume, which is why I may need them. Other instruments are sometimes very hard to get fills with any volume...
If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread