Diversified Option Selling Portfolio - Options on Futures | futures io social trading
futures io futures trading


Diversified Option Selling Portfolio
Updated: Views / Replies:44,273 / 881
Created: by myrrdin Attachments:57

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 57  
 
Thread Tools Search this Thread
 

Diversified Option Selling Portfolio

  #91 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

Bought back the CH and SH puts with (very) small losses after yesterdays USDA reports. Looks like I will be able to sell again at lower prices.

Also bought back the meat puts early this week. Both were negative trades although I had hedged them with short future positions. No idea how far they can fall. Although I am still convinced hog and live cattle prices will end up significantly above todays price. Will enter bullish trades in the meats after a reversal, but I am not sure if I will sell options or buy futures.

Added to the ES put program and sold the ESG P1675. Currently I hold 4 lots, each 3 % of account value. No hedge since yesterday; intend to hedge again below Monday's low.

Best regards, Myrrdin

Reply With Quote
The following 4 users say Thank You to myrrdin for this post:
 
  #92 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

Out of all ES puts, as the S&P index closed below the 200 dma. The last time this happened was on August, 19th.

I was hedged at 100 % for a large part of the trade, But hedging is not perfect. Few of the options were profitable, most of them showed an acceptable loss. In average the options lost 20 - 25 %, a large part of this was covered by the hedge.

I still have the hedge futures working, and, thus, I am short via outright futures with a tight stop (50 % at 2043.5, 50 % at 2051.5)

Will enter the trade again, when there is a clear reversal. This may also happen below the 200 dma.

I am quite happy with my strategy of exiting, as losses are limited. But of course I have to enter and exit more often than others holding there options longer.

Best regards, Myrrdin

Reply With Quote
The following 3 users say Thank You to myrrdin for this post:
 
  #93 (permalink)
Patience my young padawan
Houston, TX/USA
 
Futures Experience: Intermediate
Platform: NinjaTrader TWS Barchart
Broker/Data: IB / IB
Favorite Futures: ES & looking into commodities
 
ElChacal's Avatar
 
Posts: 308 since Nov 2014
Thanks: 368 given, 183 received


@myrrdin I assume you hedge with options to downsize the outright future contract? Could you explain more in detail? What would be the "composite" value of a 1 point move of the S&P500 for instance?
Thanks.

Reply With Quote
The following user says Thank You to ElChacal for this post:
 
  #94 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary


ElChacal View Post
@myrrdin I assume you hedge with options to downsize the outright future contract? Could you explain more in detail? What would be the "composite" value of a 1 point move of the S&P500 for instance?
Thanks.


No, I hedge with outright futures, as described below. 100 % hedge means that the futures have approximately the same delta (usually a bit less) than the options. Of course, change in volatility is not considered.

Best regards, Myrrdin

Reply With Quote
The following 4 users say Thank You to myrrdin for this post:
 
  #95 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

I am now out of most of my short options, and only hold the LCG C156 and a small lot of the ESG P1625 (early entry yesterday after Tiger traders comments that in his opinion the downside of the ES should be limited).

I intend to build a regular position in ES puts on a reversal of the S&P index.

Furthermore, I intend to re-enter the LH puts in the next couple of days.

Best regards, Myrrdin

Reply With Quote
The following 4 users say Thank You to myrrdin for this post:
 
  #96 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

In my option portfolio I only hold positions in the hogs (LHG P55) and the stock indices (various OTM put options). Not much on the horizon to sell.

In the grains, the next move should be upwards. But in my opinion the lows are not in yet. Corn looks like the best candidate for selling puts.

Similar situation in the energies. CL and NG might move further down before moving up again. I am looking to short NG calls on a severe move up in the future.

Currently nothing that interests me in the softs. Coffee could also move down before moving up again.

Thus, I am waiting patiently for the next opportunity. And hope to be sussessful with hogs and S&P.

Best regards, Myrrdin

Reply With Quote
The following 4 users say Thank You to myrrdin for this post:
 
  #97 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

I sold a first lot of LCM P110 yesterday, as I think the lows are in for the next couple of months. I do not expect a large move upwards, but prices should hold stable for a while.

I also placed an order for selling a first lot of CLM P40. The dollar should not move much further upwards, and this might keep crude oil prices stable at least. Volatility currently is rather high because of the OPEC meeting end of the week.

ES put selling program is running regularly.

Best regards, Myrrdin

Reply With Quote
The following 3 users say Thank You to myrrdin for this post:
 
  #98 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

Got filled an the CLM P40.

Sold SH C1040. As long as there are no major weather problems in South America, prices should come back down.

Best regards, Myrrdin

Reply With Quote
The following 3 users say Thank You to myrrdin for this post:
 
  #99 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary

I sold two lots of ESH P1650 and ESH P1675 yesterday after the press conference. Maximum number of lots is four, thus, I am 50 % invested currently. The S&P index is again above its 200 dma (days moving average). Stop is below the low of 14th of December.

Further positions:

SG C8.8

LHG P55
LCM P110

GCJ P1025

Best regards, Myrrdin


Last edited by myrrdin; December 17th, 2015 at 03:20 AM. Reason: Added details regarding ES puts
Reply With Quote
The following 3 users say Thank You to myrrdin for this post:
 
  #100 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary


SG C8.8
Bought back profitable because of news of dryness in pars of South America.

LHG P55
Bought back profitable because of new low of the cash price.
LCM P110
Bought back with a loss, and bought outright futures instead at approx. 116.65. I expect a large move upwards instead of a move sidewards / upwards, which already began.

GCJ P1025
Bought back with a small loss, as stoop loss was hit.

Reply With Quote
The following 2 users say Thank You to myrrdin for this post:

Reply



futures io > > > > Diversified Option Selling Portfolio

« PC-SPAN | - »
Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

July Journal Challenge w/$1100 in prizes from TopstepTrader

July

John @ No BS Day Trading (TBA)

Elite only

An Afternoon with FIO member Softsoap (being rescheduled)

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Webinar: Option Selling with and without insurance w/Carley Garner Big Mike Options on Futures 50 March 24th, 2015 05:52 PM
Portfolio Trader no erocla MultiCharts 1 November 27th, 2014 10:56 AM
"DTS" Diversified Trading System - Anybody out there!? ShaunG Trading Reviews and Vendors 2 July 30th, 2014 05:54 AM
Diversified Trading Systems soch Trading Reviews and Vendors 3 February 18th, 2013 09:12 PM
Portfolio Construction dgresens Psychology and Money Management 3 October 25th, 2012 03:33 AM


All times are GMT -4. The time now is 06:33 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-06-24 in 0.09 seconds with 19 queries on phoenix via your IP 107.22.17.220