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Selling Options on Futures?
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Selling Options on Futures?

  #6281 (permalink)
Market Wizard
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isold View Post
I have a question of a practicality so to say. The profit of baying back half premium is around $ 1.5-2, which is ~ $100 minus commission , per month !! Is it worth the effort,unless you have another 3,4 positions in other products.Sorry in advance ,maybe I don't understand something here

It is that profit times the amount of spreads that you have on.

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  #6282 (permalink)
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I see a table you posted as a(back ratio) of -2 contracts and +3 cntrs. ,if it is a real positions ,then I see a kid's menu,if it is 8-10 contrs, then it makes more sense. so I assumed that your spreadsheets are a reflection of a real trades. and profits are tiny,but the losses are also very small,everething in proportions.

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  #6283 (permalink)
Market Wizard
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isold View Post
I see a table you posted as a(back ratio) of -2 contracts and +3 cntrs. ,if it is a real positions ,then I see a kid's menu,if it is 8-10 contrs, then it makes more sense. so I assumed that your spreadsheets are a reflection of a real trades. and profits are tiny,but the losses are also very small,everething in proportions.

I don't understand your "kid menu" comment.

All of the tables/examples I post are for one spread. You can do the math for the amount of spreads you would trade.

I trade hundreds at a time. I have closed 2,429 ES spreads for 7 contract months in 2017. Netted $85,743.36 on them.

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  #6284 (permalink)
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That is exactly what I wanted to know, otherwise it looks like a nice hobby. I personally do 15-20 contracts per vertical on a 7-14 DTE,and have a real heat, but reward is also substantial,so it was my bad comment seeing -2 cotrs on a mothly basis assuming that is no multiples to add.

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  #6285 (permalink)
Market Wizard
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On 7/20/17 I sold EW3v7p2020(2)p1800(3) for 2.55.

On 8/22/17 I exited them at 1.45. Days held was 33. ROI is 1.3%.

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  #6286 (permalink)
Market Wizard
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Today Aug 23 I sold ESz7p1920(2)p1680(3) for 4.45. IM is 439. DTE is 115.

I debated about selling Nov (87 DTE) or Dec. Went with Dec for higher premium and possibly higher ROI (4.0% vs 2.8%). Probably will have slower premium erosion because of higher DTE but selling at lower strike. Don't know if Dec slower premium erosion will lower ROI to lower than Nov. I doubt it. I'll track it.

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  #6287 (permalink)
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ron99 View Post
Today Aug 23 I sold ESz7p1920(2)p1680(3) for 4.45. IM is 439. DTE is 115.

I debated about selling Nov (87 DTE) or Dec. Went with Dec for higher premium and possibly higher ROI (4.0% vs 2.8%). Probably will have slower premium erosion because of higher DTE but selling at lower strike. Don't know if Dec slower premium erosion will lower ROI to lower than Nov. I doubt it. I'll track it.

Maybe a stupid question from me: "are they all Puts that you sold?"

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  #6288 (permalink)
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Kruger View Post
Maybe a stupid question from me: "are they all Puts that you sold?"

ESz7p1920(2)p1680(3)

"ES" is E-Mini S&P 500 contract
"z" for the month. In this case December
"7" is the last digit of the year.
"p" is for put.
"1920" is the strike of the option. I list the short option first.
"(2)" is the quantity of that strike.
"1680" is the strike of the long option.
"(3)" is the quantity of that strike.

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  #6289 (permalink)
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Do you worry at all about the upcoming debt ceiling debate?

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  #6290 (permalink)
Market Wizard
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manuel999 View Post
Do you worry at all about the upcoming debt ceiling debate?

I'm not. It sounds like GOP is mostly in favor. I doubt they want shutting down government to go along with other things currently happening on their resume for the next elections.

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