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If you cut the excess because Mat margin is lower you will end up getting burned because you don't have enough excess.
Doing less trades and having 90+% winners is far more important than having more trades and < 90% winners because those losers hurt badly. They wipe out the winnings from a lot of trades.
i am sorry if my english bad, please appologize for my wrong info, i am using interactive brokers platform.
thank you very much for your information thats realy help me.
ron can you give me the information of your stop loss or what should you do when the price agains you. i am usually put stop loss when the premium became double. like my trade CL DEC 75.5 PUT @0.14 i will put stop loss when the premium @0.28.
hi aayohanes,
this is not to answer for ron, just to give you something to think about. the price of the put can increase to twice the amount despite the underlying not moving much at all (its unlikely, but it can), as there are other key drivers of option price (especially OTM puts) rather than merely the underlying spot price. for this reason i believe its fairly crucial to understand all the key option price drivers before trading it. thats just my opinion though, and what do i know?
hi aayohanes,
this is not to answer for ron, just to give you something to think about. the price of the put can increase to twice the amount despite the underlying not moving much at all (its unlikely, but it can), as there are other key drivers of option price (especially OTM puts) rather than merely the underlying spot price (volatility being one). for this reason i believe its fairly crucial to understand all the key option price drivers before trading it. thats just my opinion though, and what do i know?
Around the close on Wednesday when ES was 1402, I noticed it was possible to sell 1420 call and 1380 put for 2.00 points each or $200 per strangle. This seemed a good return for 2 days of risk and 20 points movement each way.
Thursday open saw a high of 1416.75 which was getting a bit close and the call had doubled then it sold off nicely, the low of 1397.5 occured today so the puts were never really challenged.
The latest email from James Cordier is prepping for Coffee puts although he doesn't mention any strikes, looks interesting though as I am looking for something to sell.
A good trade BK, it is major support @ 1400 (also a triple bottom on the H1) so if it did break I wld expect the momentum wld have pushed it down....if it broke. The technicals on shorting coffee or selling calls look good, was tempted a whle back but it spike to 180, which was a bit out my comfort zone.
