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Diversified Option Selling Portfolio
Started:September 6th, 2015 (11:22 AM) by myrrdin Views / Replies:26,304 / 581
Last Reply:December 2nd, 2016 (01:20 PM) Attachments:38

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Diversified Option Selling Portfolio

Old September 7th, 2016, 10:40 AM   #421 (permalink)
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Sold a first lot of CTH7 C80.

The current upmove of the Cotton price seems to me to be a technical bounce. Fundamentals are bearish. Intend to sell 2 further lots at higher prices.

Best regards, Myrrdin

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Old September 7th, 2016, 12:06 PM   #422 (permalink)
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jokertrader View Post
Just looked at Live cattle and its fallen off the cliff.. not sure why..
my assumption is seasonally Live cattle should rally into the end of the year - still researching if this is correct

Question: Some option prices on LE in TOS seem strange.. and some seem normal
like Dec 100 put is 3.75/4.00 (bid/ask) vs Dec 98 put which is 0.575/3.125 and then goes back up for 98 put..

Wonder if i can use this anomaly to create a spread and whether i will ever get filled?

Also for the LEZ P100/94 i am seeing 2.05 now. So if both our assumptions are right.. good time to sell right?

http://www.dailylivestockreport.com/documents/dlr%2009-02-16.pdf

I believe this particular report and some older dated reports, from 31 August, explain to some extent what has been dragging live cattle price down.
What really do not cease to amaze me is that all the data on meat complex oversupply and bias towards lack of demand was featured across the web, including reports from the Dailystockreports and not only.

To my opinion, market was ( and effectively is ) oversupplied , although remained steady owing to expectations of stronger demand that had to absorb higher supply. As we all know from the news, higher demand failed to show up.

Few days ago i was considering selling call ( which would be beautiful ) , however i reconsidered my idea of being short call set owing to huge discount to cash and furthermore, bullish seasonals. In addition, I received an email from my broker suggesting selling LEZ P96. I did not want to sell that high delta strike and ultimately ended up selling LEZ P87 which was about 3.00 delta on the sell date. My options premium almost quadrupled yesterday at close, however today futures up, volatility down i am intended to close my puts out.

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Old September 7th, 2016, 06:39 PM   #423 (permalink)
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Jerard View Post
http://www.dailylivestockreport.com/documents/dlr%2009-02-16.pdf

I believe this particular report and some older dated reports, from 31 August, explain to some extent what has been dragging live cattle price down.
What really do not cease to amaze me is that all the data on meat complex oversupply and bias towards lack of demand was featured across the web, including reports from the Dailystockreports and not only.

To my opinion, market was ( and effectively is ) oversupplied , although remained steady owing to expectations of stronger demand that had to absorb higher supply. As we all know from the news, higher demand failed to show up.

Few days ago i was considering selling call ( which would be beautiful ) , however i reconsidered my idea of being short call set owing to huge discount to cash and furthermore, bullish seasonals. In addition, I received an email from my broker suggesting selling LEZ P96. I did not want to sell that high delta strike and ultimately ended up selling LEZ P87 which was about 3.00 delta on the sell date. My options premium almost quadrupled yesterday at close, however today futures up, volatility down i am intended to close my puts out.

thanks for the write up. Have you ever considered selling a spread closer to the 50 delta and since its Dec options.. just leaving it .. u have much better risk/reward.. and a move say to 105 and u can take it off with decent profit.. and if that happens a month or so from now.. even better.

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Old September 9th, 2016, 04:59 PM   #424 (permalink)
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I liquidated my ES puts with a small loss. The close today looks very weak.

I will be travelling on Monday, and, thus, will not be able to trade most of the day.

But I intend to re-enter.

Have a nice weekend !

Best regards, Myrrdin

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Old September 9th, 2016, 06:14 PM   #425 (permalink)
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myrrdin View Post
I liquidated my ES puts with a small loss. The close today looks very weak.

I will be travelling on Monday, and, thus, will not be able to trade most of the day.

But I intend to re-enter.

Have a nice weekend !

Best regards, Myrrdin

I bought some ES puts to protect current positions. This drops looks too similar to Friday 8/21/15 for me not to protect myself some way.

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Old September 10th, 2016, 03:18 AM   #426 (permalink)
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ron99 View Post
I bought some ES puts to protect current positions. This drops looks too similar to Friday 8/21/15 for me not to protect myself some way.

I fully agree. And this is why I reacted in the same way that helped me in 2015.

Best regards, Myrrdin

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Old September 11th, 2016, 01:08 PM   #427 (permalink)
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Currently I hold the following short options positions:

CLF C58-63 (stop loss on a close of the future above the August highs),
CTH C80 (stop loss on a close above the high of August 12th),
CZ C3.6 (small lot; stop loss on a close above the high of July 28th),
LHZ C62 (stop loss on a close above the August highs).

There will be an USDA Report out Monday, which affects corn and Cotton prices.

I intend to re-enter the ES puts on a lower level. CL and CT show some correlation with the Indices, and, thus, the ES puts help to balance the portfolio.

Best regards, Myrrdin

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Old September 13th, 2016, 10:43 AM   #428 (permalink)
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Sold the SF C11 and a small lot of the SF C10. Stop for the latter is tight above yesterdays high.

USDA Report was very bearish for the beans.

Best regards, Myrrdin

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Old September 14th, 2016, 10:38 AM   #429 (permalink)
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Bought back the LHZ C62 with a profit of 66 %. Intend to sell again LHZ calls around 56, but I doubt I will get the chance.

Added to my LHG-LHZ position instead. In recent years this spread moved up above $8, whenever there were no severe desease problems.

Best regards, Myrrdin

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Old September 14th, 2016, 12:03 PM   #430 (permalink)
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myrrdin View Post
Bought back the LHZ C62 with a profit of 66 %. Intend to sell again LHZ calls around 56, but I doubt I will get the chance.

Added to my LHG-LHZ position instead. In recent years this spread moved up above $8, whenever there were no severe desease problems.

Best regards, Myrrdin

Is that LHz6-LHg7 or LHg7-LHz7?

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