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Selling Options on Futures?


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Selling Options on Futures?

  #6251 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
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Interesting Blog Post

What to expect after a big drop in stocks, and some trading tools
Adam H Grimes


https://adamhgrimes.com/expect-big-drop-stocks/

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  #6252 (permalink)
 ron99 
Cleveland, OH
 
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On one hand I hate missing out on these good premiums and ROIs. But on the on the other hand we have never had a US president like Trump who is totally unpredictable and is more likely to make a mistake and do the wrong thing.

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  #6253 (permalink)
 ron99 
Cleveland, OH
 
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SMCJB View Post
Interesting Blog Post

What to expect after a big drop in stocks, and some trading tools
Adam H Grimes


https://adamhgrimes.com/expect-big-drop-stocks/

I wish he had included 2008 & 2009.

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  #6254 (permalink)
 rsm005 
vancouver BC/Canada
 
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ron99 View Post
I have held off on adding new ES put spreads this week. I still have on prior positions. So I am increasing my 4xIM to a higher level.

Ron,

I know you've made a few trades using the 2/3 spread defined earlier in this thread, I'm using it in my current position for the first time. With that said have you noticed if it decays at the same rate as your 1/2 spread, mine has been open for 20 days and the position still shows a net loss, not much but the longs are falling a lot faster than the shorts. I'm wondering if the the 35 day average is to be expected or if it may take more time.

Thanks,
/rsm005/

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  #6255 (permalink)
volramp
Tel Aviv Israel
 
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sold 18 ZC Nov 330 puts for -1.25 cr
profit target: half of credit.
stop loss : ZC 335
reason: seasonal

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  #6256 (permalink)
 myrrdin 
Linz Austria
 
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volramp View Post
sold 18 ZC Nov 330 puts for -1.25 cr
profit target: half of credit.
stop loss : ZC 335
reason: seasonal

As shown in the thread "Diversified Option Selling Portfolio" by Ron and myself the seasonal low for years with a large crop and prices below 450 for CZ is in early September. This was always the case since 2007.

The option you chose has only approx. 70 DTE, and it is relatively close to the money compared to the very low profit potential. A move down of the CZ of only 10 c will approx. double the value of your put options.

I might enter a long position in corn in September. But probably I will not sell puts, but buy future spreads or outright futures.

Best regards, Myrrdin

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  #6257 (permalink)
 ron99 
Cleveland, OH
 
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rsm005 View Post
Ron,

I know you've made a few trades using the 2/3 spread defined earlier in this thread, I'm using it in my current position for the first time. With that said have you noticed if it decays at the same rate as your 1/2 spread, mine has been open for 20 days and the position still shows a net loss, not much but the longs are falling a lot faster than the shorts. I'm wondering if the the 35 day average is to be expected or if it may take more time.

Thanks,
/rsm005/

Search for TFOpts post showing average days held for the various option strategies for his 4 year studies.

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  #6258 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
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Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
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ron99 View Post
Today July 13 I sold EW3v7p1960(2)p1740(3) for 2.70.

Exited today at 1.30. 34 days held. 2.1% ROI.

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  #6259 (permalink)
 isold 
toronto/ontario/canada
 
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ron99 View Post
Exited today at 1.30. 34 days held. 2.1% ROI.

Hi Ron! Just curios ,what was your draw back on Aug 11,(N. Korea tensions) ?

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  #6260 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
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isold View Post
Hi Ron! Just curios ,what was your draw back on Aug 11,(N. Korea tensions) ?


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