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)
Awesome work and thank you for the continued effort. Quick question, does it make sense here to go out further in time from 95 days to say 130? I seem to recall a post by you saying you'd need to go further out in time than 95 days to offer the best protection but can't recall.
Thanks,
/rsm005/
Can you help answer these questions from other members on NexusFi?
The problem with going out to 130 DTE is that sometimes that contract isn't available. The non-quarterly months (Serial Months) have 3 months trading at all times. Right now they are Jan, Feb and Apr. May won't start trading until the Tuesday (Monday is a holiday) after the Jan contract goes off on 1/15/16. So that contract would start trading at 123 DTE.
I tried finding a post that I mention being even further out but I couldn't find it.
To add a bit more color the the trade 130 days out vs the one that's approx. 100 days out, here's how the margin has behaved after the most recent pounding by the Chinese currency devaluation.
Contract: OESV5 P1750
Quantity: 80
Premium: $4.55
Days …
Thanks, Ron for your post #5115 of KC trade. I refer to your comment in this post given below:
"Since I put on this spread I found out through further research that the longs need to be less DTE, around 40-70 DTE, to get better coverage during a flash move. Like a 30 point move up in 10 days."
Are you referring to KC only or ES as well? Your latest study on ES is:nselling 1 short and 2 longs at about 95DTE. Are you saying the longs have to be 40-70 DTE. If so, how will you decide between 40 to 70 DTE as your credit will also go down?
Right now I am in a milk trade so not many short options. But I will still heavily favor ES but have some other commodities as fundamentals, seasonals, and ability to protect against flash movements dictate. I will not enter a naked short option anymore.
Right now I have on ESg6p1650-ESg6p1400 (2 longs) that I entered on 10/29/15 at 2.75. 32 days held. Current price is 72% of starting price. It's not going to be very good ROI because of the amount of days held. But it was able to ride out the dip in Nov easily.
I'm thinking of closing it out before Fed mtg on Dec 16th and entering lightly some new positions right before mtg. If it flash crashes then I will make money.
