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Selling Options on Futures?
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Selling Options on Futures?

  #5681 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
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bmtc View Post
Hi Ron,

I would appreciate it to hear your experience with DeCarley-Zaner-Gain after two and a half years. Have you seen continued enhancements / improvements to their service and technology during this time? Are they prompt in making distributions (transfer cash out) when requested by customers? Thanks.

BM

I am still entirely happy with service. Other than one time putting a wrong number on a bank wire out, transferring money has been OK.

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  #5682 (permalink)
Market Wizard
Linz Austria
 
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bmtc View Post
Hi Ron,

I would appreciate it to hear your experience with DeCarley-Zaner-Gain after two and a half years. Have you seen continued enhancements / improvements to their service and technology during this time? Are they prompt in making distributions (transfer cash out) when requested by customers? Thanks.

BM

I am very happy with their service as well. Money transfer - in my case from and to Europe - works without any problem. The Gain tool is not perfect for option sellers, but Carley does everything necessary to compensate this issue.

Best regards, Myrrdin

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  #5683 (permalink)
Trading for Fun
westhills california US
 
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I know Ron does not like Call credit spreads due to low ROI. But I should mention.

After 51 days I closed ESz c2200c2210 with 54% profit.

Thoughts on ES 1to2 spread right before elections and Fed drama?

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  #5684 (permalink)
Market Wizard
Cleveland, OH
 
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rajab View Post
I know Ron does not like Call credit spreads due to low ROI. But I should mention.

After 51 days I closed ESz c2200c2210 with 54% profit.

Thoughts on ES 1to2 spread right before elections and Fed drama?

I also do not like selling a 2200 call when futures were 2171. It worked for you this time. It probably will fail many times.

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  #5685 (permalink)
Trading Apprentice
Nassau, Bahamas
 
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rajab View Post
I know Ron does not like Call credit spreads due to low ROI. But I should mention.

After 51 days I closed ESz c2200c2210 with 54% profit.

Thoughts on ES 1to2 spread right before elections and Fed drama?

I would caution against using n=1 as an indication to "prove" call selling works. A trading system is the sum of thousands of trades. If you have positive expectancy after 21 trades, maybe you're on to something, but then you also have to determine how the strategy will behave in different regimes.

There is consistent risk premium on the put side of the major stock index futures, but there is not nearly as much premium on the call side. The only way I've seen call spread selling work consistently is if it's combined with put spread sales (to form an Iron Condor). That being said, you have to understand how to manage your upside gamma risk. Everyone always assumes when they put on an iron condor that a crash down is what they have to worry about when in reality it's the upside gamma risk.

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  #5686 (permalink)
Trading for Fun
westhills california US
 
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Emanuel Wynne View Post
I would caution against using n=1 as an indication to "prove" call selling works. A trading system is the sum of thousands of trades. If you have positive expectancy after 21 trades, maybe you're on to something, but then you also have to determine how the strategy will behave in different regimes.

There is consistent risk premium on the put side of the major stock index futures, but there is not nearly as much premium on the call side. The only way I've seen call spread selling work consistently is if it's combined with put spread sales (to form an Iron Condor). That being said, you have to understand how to manage your upside gamma risk. Everyone always assumes when they put on an iron condor that a crash down is what they have to worry about when in reality it's the upside gamma risk.

I was just posting the results nothing more. I can see that the outcome of put selling is more successful than call selling for ES futures(in this market).

Can you please explain yourself in regards to gamma and its importance in the selling futures? may be an example.

Thanks.

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  #5687 (permalink)
Market Wizard
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Sold EW3g17p1700p1460(2) for 3.15 today.

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  #5688 (permalink)
Market Wizard
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VIX (S&P500 Option Implied Volatility Index) is approaching September highs.

VXN (Nasdaq Option Implied Volatility Index) is at post-Brexit highs.

Of course the US does have an election in 7 days, and the FBI may have clouded Wall Streets Crystal Ball!

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  #5689 (permalink)
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rajab View Post

Thoughts on ES 1to2 spread right before elections and Fed drama?

I have the VIX JAN 17 23 1x2 Call backratio, which is currently up .50

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  #5690 (permalink)
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Psychology and the general, pervasive fear of a market collapse


All,

There's been a lot of discussions around process and methods but one area that I wanted to talk about was psychology. One of the biggest things that gets to me and probably always will is the fear of being completely wiped out. A sudden drop or a long trend down that shows no sign of stopping. Yes the methods discussed here can stand a large drop or even a consistent drop up to a point but by then a lot of money has been lost. Now, some threads and blogs say to invest without margin, at least there's comfort in knowing you own an asset that may eventually come back. Others have said to simply eat your loss and move one. No matter what the method I wanted to see how people on this thread deal with the fear, the nerves, paranoia, and manage the constant stream of "what ifs" playing out in your mind?

/rsm005/

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