Diversified Option Selling Portfolio (Page 40) - Options on Futures | futures.io
futures.io futures trading
 

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures


Diversified Option Selling Portfolio
Started:September 6th, 2015 (11:22 AM) by myrrdin Views / Replies:26,348 / 581
Last Reply:December 2nd, 2016 (01:20 PM) Attachments:38

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
 38  
 
Thread Tools Search this Thread

Diversified Option Selling Portfolio

Old August 24th, 2016, 12:27 PM   #391 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received

Bought back the KCH C240 with a profit of 30 %.

Intend to sell again at a higher price. We are moving into the blooming period, and changing weather forecasts might result in a higher volatility.

Best regards, Myrrdin

Reply With Quote
     

Old August 24th, 2016, 12:55 PM   #392 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received

Bought back the CTZ C80 with a profit of 60 %.

Intend to sell again at a higher price.

Best regards, Myrrdin

Reply With Quote
     

Old August 26th, 2016, 02:14 PM   #393 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received


Bought back the LCV P106 with a loss of approx. 120 %.

Intend to sell again after a reversal.

Best regards, Myrrdin

Reply With Quote
     

Old August 28th, 2016, 10:20 PM   #394 (permalink)
Trading Apprentice
hudson ohio summit
 
Futures Experience: Advanced
Platform: tradestation
Favorite Futures: options
 
Posts: 5 since Aug 2016
Thanks: 4 given, 3 received

Positions

Myrrdin,

Do you intend to post your trades when you initiate them. I'd like to track your ideas. It is greatly appreciated.

Reply With Quote
     

Old August 29th, 2016, 01:20 PM   #395 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received

Futures Edge on FIO

Are you a NinjaTrader user?

 

meg10 View Post
Myrrdin,

Do you intend to post your trades when you initiate them. I'd like to track your ideas. It is greatly appreciated.

I am not quite sure what you mean. I post the trades after I received a fill on the same day or (in rare cases) the day after. I am not sitting in front of a computer all day.

I will use this opportunity to explain what I want to achieve with this thread for traders with limited experience in option selling:

I want to demonstrate that it is possible to operate an option selling account, which is sufficiently diversified to reduce clump risk. I want to discuss criteria for selecting suited commodities, and for entering / exiting trades. I want to show warning signs. And try to answer questions in regard to option selling. In one sentence: I want to give traders with little experience in option selling a basis to check, if this strategy is suited for them, and to improve quickly.

I do not intend to publish trades that can be followed exactly by others. And I do not intend selling my trading signals now or in the foreseeable future. I prefer making money via trading and not via selling a newsletter.

Additionally I like discussing considerations for trades, and other issues related to option selling, with everybody here. Thus, all trade suggestions, contributions to criteria for selecting, entering, and exiting trades, and principal questions regarding option selling are highly welcome.

Best regards, Myrrdin

Reply With Quote
     
The following 5 users say Thank You to myrrdin for this post:
     

Old August 29th, 2016, 01:24 PM   #396 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received

Sold the LCZ P99 (suggestion Carley) and the LCG P96 to replace the LHV puts liquidated last week.

Future prices are significantly lower than cash prices, and futures are oversold. I expect prices going sidewards / upwards from here.

Best regards, Myrrdin


Last edited by myrrdin; August 29th, 2016 at 02:58 PM. Reason: Corrected LH --> LC
Reply With Quote
     

Old August 29th, 2016, 01:54 PM   #397 (permalink)
Trading for Fun
Riga Latvia
 
Futures Experience: Intermediate
Platform: Zaner 360
Favorite Futures: commodyties
 
Posts: 83 since Jan 2013
Thanks: 219 given, 59 received


myrrdin View Post
Sold the LHZ P99 (suggestion Carley) and the LHG P96 to replace the LHV puts liquidated last week.

Future prices are significantly lower than cash prices, and futures are oversold. I expect prices going sidewards / upwards from here.

Best regards, Myrrdin

Sold LEZ P100/94 spread at 1.125.

Reply With Quote
     

Old August 30th, 2016, 03:28 PM   #398 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received


meg10 View Post
Myrrdin,

Do you intend to post your trades when you initiate them. I'd like to track your ideas. It is greatly appreciated.

In case you want to track how an option selling account works without risking your money, I suggest to open a paper account and trade short option trades for a year. Enter your trades, perhaps based on some of my trades, discuss your considerations for trades in this thread, and gain some experience. (Be assured that trading your own money will again be a different story.)

For your information: There are many trades I do not publish, as they are not short option trades. But they may be related to my short option trading, eg. to achieve a USD-neutral Portfolio or for other hedging activities.

Please feel free to ask questions. There are some very experienced traders around, who will try to give you answers.

Best regards, Myrrdin

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

Old August 31st, 2016, 05:20 AM   #399 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 679 since Nov 2014
Thanks: 1,032 given, 550 received

Found an interesting statistic regarding long periods of the S&P index moving less than 1 % per day (end of day).

The current period of 36 days is not the longest - there are 7 longer periods of up to 79 days (1995) since 1990.

It is interesting to note that the first weeks after such periods since 1990 (12 events) never show drastic moves of the S&P index. There are only 2 cases where prices moved down more than 5 % within two or three months after the event.

The figures are from a paid subscription. Thus, I do not want to get into more details.

Best regards, Myrrdin

Reply With Quote
     
The following 4 users say Thank You to myrrdin for this post:
     

Old August 31st, 2016, 11:03 AM   #400 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,586 since Dec 2013
Thanks: 1,394 given, 2,357 received
Forum Reputation: Legendary



myrrdin View Post
Found an interesting statistic regarding long periods of the S&P index moving less than 1 % per day (end of day).

The current period of 36 days is not the longest - there are 7 longer periods of up to 79 days (1995) since 1990.

It is interesting to note that the first weeks after such periods since 1990 (12 events) never show drastic moves of the S&P index. There are only 2 cases where prices moved down more than 5 % within two or three months after the event.

The figures are from a paid subscription. Thus, I do not want to get into more details.

Best regards, Myrrdin

Very interesting. I can't replicate the data exactly but I get something very similar. Agree with the current 36 days, but show a high of 100 consecutive days back in 1995. Also show a period of 398 consecutive days with moves of less than 1% back in 1964/65. Also agree that this isn't predictive of a major market move to come, R squared's all ~ 0.01 for the simple regressions I ran. (Streak length vs 20 day lowest low etc).

Reply With Quote
     
The following user says Thank You to SMCJB for this post:
     

Reply



futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures > Diversified Option Selling Portfolio

Thread Tools Search this Thread
Search this Thread:

Advanced Search



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

NinjaTrader 8: Features and Enhancements, Tips and Tricks

Dec 6
 

Al Brooks: Stop Losing when a Good Trade goes Bad, Correcting Mistakes

Elite only
 

Trading Technologies: Algo Design Lab hands-on

Dec 13
     

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 06:52 PM
Portfolio Trader no erocla MultiCharts 1 November 27th, 2014 11:56 AM
"DTS" Diversified Trading System - Anybody out there!? ShaunG Vendors and Product Reviews 2 July 30th, 2014 06:54 AM
Diversified Trading Systems soch Vendors and Product Reviews 3 February 18th, 2013 10:12 PM
Portfolio Construction dgresens Psychology and Money Management 3 October 25th, 2012 04:33 AM


All times are GMT -4. The time now is 04:35 AM.

Copyright © 2016 by 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 2016-12-07 in 0.12 seconds with 20 queries on phoenix via your IP 54.159.239.251