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On May 1, sold EW3Q8 1990P(-2) 1690P(+3) for 4.6 at 108 DTE. On May 11, closed the positions at 2.3. 10 days held. mROI:5.2% using 6xIM.
Did not put new position as want to wait for down-day but it seems uptrend has started as the SPX cash closed above the downtrend line.
Any suggestions on new position now?
Regards,
Dilip
I am unable to foresee the future movement of the ES. Thus, when I trade such concepts, I am always invested. I only consider exiting the concept in case of a very important event, eg. elections.
Good day. I've been reviewing work by John Richardson and Consistentoptionsincome. Is anyone intimately acquainted with the methods and its success or failure?
I am in same situation. I exited May 9. I didn't follow my own strategy of always reentering immediately or at least the next day. I thought there would be a down day. Now I watched a couple of days of higher ES and profit pass me by.
Your guess is as good as mine on when we should get back in.
I saw the same links. With my experience of selling options, his approach makes sense, if (and it is a big if), you adjust at the right time. From what I can glean, adjustments are the core of the strategy. The concerns for me are (1) the initial legs of the trade. He does state in the webinar that there is a directional bias at the initiation of the trade, but you still take in a credit. So, it is more involved than an iron condor and more than 4 legs (2) what level dictates that an adjustment be made either at market open or EOD. Is the level a physical market level, or the delta of the position or a specific leg, etc.
Supposedly, the beauty of the method is you can be wrong directionally multiple times before taking a loss in the end. I do get that from my own option selling and making adjustments. But I'd like to sleep a bit better at night with less exposure to wide swings. I don't have 1800 bucks to take a peak. And of course there is no refund if you find it to be rubbish.
I appreciate your input. If anyone else has any experiences, please chime in. Otherwise......
Good Ron and all,
I've been reading through some of the thread trying to understand the process.
Are you selling at a credit @ the closer strike and hedging with one additional contract much further out?
What are the parameters for adjusting your near strike if challenged?
Do you do this on the other of the market as well at the same time?
Ron, you mentioned getting back in right after taking off a trade, what determines the strikes for the initial position?
What is DTE, and 6xIM
sold EW3Q8 1990P(-2) 1690P(+3) for 4.6 at 108 DTE. On May 11, closed the positions at 2.3. 10 days held. mROI:5.2% using 6xIM.
To all of the new readers of this thread. I am currently busier with things than I was in previous years. I don't have time to answer questions or PMs that have already been covered in the thread.
Learning to sell options can't be done quickly. You need to read and research a lot to know how to safely sell options. You can't cut corners or be impatient.
I realize this thread is long. But at least start reading around page 460 to see how we crashed but then found a better way to sell options. Read the whole thread after page 460. Then if you have questions, post them in the thread.
I trade a diversified option selling portfolio for many years. Different than other concepts to sell options, I strive for diversification (I strive for holding 8 – 15 options), and, thus, spend a lot of time studying fundamentals of various commodities. …
also has a lot of good info on selling options.
I will not be taking PMs anymore because I just don't have time to privately mentor.
Also there is a Search this Thread function. Use it to find answers to your questions.
I guarantee that if you cut corners and don't fully research selling options you will lose a lot of money.
Hi KySt,
Ron has done a great job by giving examples and strategy parameters throughout the thread as the changes took place. A few others have also given their inputs.
I can mention just entry deltas here of the strategy.
Entry deltas at 90-108 DTE or around there:
Two shorts at delta = -3.0 each. Three longs at delta = -1.0 each.
Exit: at 50% drop in premium or when current MM is 100% of Account Balance ie or all MM in used up.
Please read the thread for details as Ron has suggested.
Regards,
Dilip
