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Diversified Option Selling Portfolio
Started: by myrrdin Views / Replies:33,166 / 682
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Diversified Option Selling Portfolio

  #311 (permalink)
Market Wizard
Linz Austria
 
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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

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  #312 (permalink)
Market Wizard
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Traded out of ES put spreads.

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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.

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  #313 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
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Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 782 since Nov 2014
Thanks: 1,140 given, 658 received



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

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  #314 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,450 since Jul 2011
Thanks: 670 given, 4,159 received
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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.

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  #315 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
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Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 782 since Nov 2014
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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

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  #316 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
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Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 782 since Nov 2014
Thanks: 1,140 given, 658 received

Sold the LHQ P77.

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

Best regards, Myrrdin

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  #317 (permalink)
Market Wizard
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Bought back the ESU calls at a minor loss.

Intend to sell further puts on a move downwards.

Best regards, Myrrdin

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  #318 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
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Posts: 782 since Nov 2014
Thanks: 1,140 given, 658 received


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

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  #319 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 782 since Nov 2014
Thanks: 1,140 given, 658 received


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

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  #320 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,450 since Jul 2011
Thanks: 670 given, 4,159 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.

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