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


Diversified Option Selling Portfolio
Updated: Views / Replies:36,164 / 749
Created: by myrrdin Attachments:52

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike

Reply
 52  
 
Thread Tools Search this Thread
 

Diversified Option Selling Portfolio

  #311 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary

Sold a small lot of the LCQ P112.

I expect cash price to be above 120 in August. Current cash price is 117. Difference between cash price and future price is too large in my opinion for only 6 weeks to go for the August contract.

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
  #312 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,485 since Jul 2011
Thanks: 700 given, 4,223 received
Forum Reputation: Legendary

Traded out of ES put spreads.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Decent ROI because of short days held.

But I tried to be cute and didn't hit the ask when buying out of shorts. Got filled on some but not the rest. Took a hit because it never came back.

I have decided it is better to hit the bid or ask for ES options and miss out on 0.05 than risk having partial fills and then having price move away from you. As long as bid/ask is reasonable.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #313 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary



ron99 View Post
Traded out of ES put spreads.

Decent ROI because of short days held.

But I tried to be cute and didn't hit the ask when buying out of shorts. Got filled on some but not the rest. Took a hit because it never came back.

I have decided it is better to hit the bid or ask for ES options and miss out on 0.05 than risk having partial fills and then having price move away from you. As long as bid/ask is reasonable.

I fully agree. I usually place the sell order in the middle between bid and ask and move it down quickly tick by tick.

Do you still use 50 % as your exit criteria ? Did you sell a further set of ES options, or do you wait for higher option prices ?

Best regards, Myrrdin

Reply With Quote
 
  #314 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,485 since Jul 2011
Thanks: 700 given, 4,223 received
Forum Reputation: Legendary


myrrdin View Post
I fully agree. I usually place the sell order in the middle between bid and ask and move it down quickly tick by tick.

Do you still use 50 % as your exit criteria ? Did you sell a further set of ES options, or do you wait for higher option prices ?

Best regards, Myrrdin

Yes still using 50% drop. With futures dropping this morning I wanted to exit before it dropped more and before weekend.

I still have on one more set of spreads (15). 1700-1600.

I am not sure when to reload. My gut tells me there should be a drop next week after July option expiration today. That is what seasonals say.

Last year ES was up 3 on Monday after option expiration then dropped 57 the next 5 trading days. 2013 & 2014 were flat. 2012 had a short 2 day 28 point dip.

So I'm thinking a couple of days dip next week then I add more.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #315 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary


ron99 View Post
Yes still using 50% drop. With futures dropping this morning I wanted to exit before it dropped more and before weekend.

I still have on one more set of spreads (15). 1700-1600.

I am not sure when to reload. My gut tells me there should be a drop next week after July option expiration today. That is what seasonals say.

Last year ES was up 3 on Monday after option expiration then dropped 57 the next 5 trading days. 2013 & 2014 were flat. 2012 had a short 2 day 28 point dip.

So I'm thinking a couple of days dip next week then I add more.

I proceed similarly. Currently I hold an ES strangle, and I intend to add a short put position at 2120 - 2130. At this level I also intend to buy back the calls.

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
  #316 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary

Sold the LHQ P77.

Support at 77 should hold, as market is oversold and going into a period of high temperatures.

Best regards, Myrrdin

Reply With Quote
 
  #317 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary

Bought back the ESU calls at a minor loss.

Intend to sell further puts on a move downwards.

Best regards, Myrrdin

Reply With Quote
 
  #318 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary


myrrdin View Post
Sold the LHQ P77.

Support at 77 should hold, as market is oversold and going into a period of high temperatures.

Best regards, Myrrdin

Bought back the LHQ P77, as the stop (April low) was hit. Loss of approx. 30 %.

Best regards, Myrrdin

Reply With Quote
 
  #319 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 836 since Nov 2014
Thanks: 1,197 given, 753 received
Forum Reputation: Legendary


myrrdin View Post
Sold a small lot of the LCQ P112.

I expect cash price to be above 120 in August. Current cash price is 117. Difference between cash price and future price is too large in my opinion for only 6 weeks to go for the August contract.

Best regards, Myrrdin

Cash Price yesterday made a new low for the year. Bought back the LCQ P112 with a loss of 30 %.

Best regards, Myrrdin

Reply With Quote
 
  #320 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,485 since Jul 2011
Thanks: 700 given, 4,223 received
Forum Reputation: Legendary



ron99 View Post
I am not sure when to reload. My gut tells me there should be a drop next week after July option expiration today. That is what seasonals say.

Last year ES was up 3 on Monday after option expiration then dropped 57 the next 5 trading days. 2013 & 2014 were flat. 2012 had a short 2 day 28 point dip.

So I'm thinking a couple of days dip next week then I add more.

Well I was totally wrong. No dip so far this week.

This is why normally I just add the ES spread position because most of the time you don't know what will happen.

Reply With Quote
The following 2 users say Thank You to ron99 for this post:

Reply



futures io > > > > Diversified Option Selling Portfolio

Thread Tools Search this Thread
Search this Thread:

Advanced Search



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

Introducing iSystems with Stage 5 Trading

Apr 27

FIO Journal Challenge featuring NinjaTrader ($2,000+ of prizes)

May

Prototyping Python Strategies (part 2) w/Ran Aroussi

Elite only

Ask Me Anything w/Raymond Deux @ NinjaTrader

May 3

An Afternoon with FIO member Softsoap

Elite only
 

Machine Learning & Data Mining Bias w/Kris Longmore @ Robot Wealth

Elite only

Brannigan Barrett (TBA)

Elite only

FIO member Gomi (TBA)

Elite only

FuturesTrader71 (TBA)

Elite only

EasyLanguage Programming w/Chris @ ABC Trading Group

Elite only

Portfolio Diversification w/Brendon Delate

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 Vendors and Product Reviews 2 July 30th, 2014 05:54 AM
Diversified Trading Systems soch Vendors and Product Reviews 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 04:20 AM.

no new posts
Page generated 2017-04-28 in 0.12 seconds with 21 queries on phoenix via your IP 54.196.108.20