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


Diversified Option Selling Portfolio
Updated: Views / Replies:36,074 / 746
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

  #421 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 835 since Nov 2014
Thanks: 1,193 given, 752 received

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

Reply With Quote
 
  #422 (permalink)
Elite Member
Ukraine
 
Futures Experience: Beginner
Platform: Zaner360
Favorite Futures: Options on futures
 
Posts: 11 since May 2015
Thanks: 118 given, 6 received


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.

Reply With Quote
The following 3 users say Thank You to Jerard for this post:
 
  #423 (permalink)
Elite Member
rutherford NJ
 
Futures Experience: Intermediate
Platform: Sierra Qtrader
Broker/Data: Amp and Optimus and CQG
Favorite Futures: Mainly NG Some GC, ZS,CL
 
Posts: 346 since May 2013
Thanks: 262 given, 129 received



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.

Reply With Quote
 
  #424 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 835 since Nov 2014
Thanks: 1,193 given, 752 received

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

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
  #425 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,479 since Jul 2011
Thanks: 698 given, 4,216 received
Forum Reputation: Legendary


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.

Reply With Quote
The following 2 users say Thank You to ron99 for this post:
 
  #426 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 835 since Nov 2014
Thanks: 1,193 given, 752 received


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

Reply With Quote
 
  #427 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 835 since Nov 2014
Thanks: 1,193 given, 752 received

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

Reply With Quote
The following 3 users say Thank You to myrrdin for this post:
 
  #428 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 835 since Nov 2014
Thanks: 1,193 given, 752 received

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

Reply With Quote
 
  #429 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 835 since Nov 2014
Thanks: 1,193 given, 752 received

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

Reply With Quote
 
  #430 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,479 since Jul 2011
Thanks: 698 given, 4,216 received
Forum Reputation: Legendary



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?

Reply With Quote

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

*NEW* 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 12:53 PM.

no new posts
Page generated 2017-04-27 in 0.14 seconds with 21 queries on phoenix via your IP 23.20.24.116