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


Diversified Option Selling Portfolio
Updated: Views / Replies:51,974 / 1,067
Created: by myrrdin Attachments:74

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • 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.

-- Big Mike, Site Administrator

Reply
 74  
 
Thread Tools Search this Thread
 

Diversified Option Selling Portfolio

  #551 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 992 since Nov 2014
Thanks: 1,384 given, 1,115 received
Forum Reputation: Legendary


rajab View Post
Any thoughts on selling put credit spreads on the 10 year? with short leg 2% out.
Looking at the charts support at 123. Am I too close?
Thought please?

Sorry - I do not have an own opinion regarding ZN.

Carley suggested to buy ZN calls a few days ago. The major reason to buy calls (instead of to sell puts) was the low volatility.

Best regards, Myrrdin

Reply With Quote
 
  #552 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 992 since Nov 2014
Thanks: 1,384 given, 1,115 received
Forum Reputation: Legendary

Took profit on the WH C4.7 of 50 % and the CF C3.7 of 85 %.

USD might move back down, and this would make the wheat price move up. I intend to sell wheat calls again at a higher price level.

I do not intend to sell further corn calls in 2016. Instead I placed an order to buy the CZ17-CZ18 below -20.

Last week I bought back the LHZ C50 with a profit of 50 %.

Best regards, Myrrdin

Reply With Quote
 
  #553 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 992 since Nov 2014
Thanks: 1,384 given, 1,115 received
Forum Reputation: Legendary


Considerations for further trades:

Sell KCH calls (eg. KCH C200) on a minor upwards move. The small crop of Robusta coffee should be priced in. Last week we had a bearish signal in the weekly chart. COT data looks bearish, too.

Sell LHG puts on a move downwards towards the current contract low.

Best regards, Myrrdin

Reply With Quote
 
  #554 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,674 since Jul 2011
Thanks: 777 given, 4,643 received
Forum Reputation: Legendary


myrrdin View Post
Considerations for further trades:

Sell KCH calls (eg. KCH C200) on a minor upwards move. The small crop of Robusta coffee should be priced in. Last week we had a bearish signal in the weekly chart. COT data looks bearish, too.

Sell LHG puts on a move downwards towards the current contract low.

Best regards, Myrrdin

Ha. 15 minutes before I saw this post I was looking at selling March KC calls. Might do it tomorrow.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #555 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 992 since Nov 2014
Thanks: 1,384 given, 1,115 received
Forum Reputation: Legendary


ron99 View Post
Ha. 15 minutes before I saw this post I was looking at selling March KC calls. Might do it tomorrow.

Good to hear that. If we both have the same opinion, it should work. Hope we see a move upwards tomorrow.

Best regards, Myrrdin

Reply With Quote
 
  #556 (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: 380 since May 2013
Thanks: 303 given, 137 received

@ron99 for coffee would u sell outright or employ the same ratio strategy as ES? Have to check if there is enough premium. I might join you guys but with a straight spread

Sent using the futures.io mobile app

Reply With Quote
 
  #557 (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: 380 since May 2013
Thanks: 303 given, 137 received


rajab View Post
Any thoughts on selling put credit spreads on the 10 year? with short leg 2% out.
Looking at the charts support at 123. Am I too close?
Thought please?

Depends on what u are trying? Which expiry? If u have enough time and you are looking for a bounce fine then why not do ATM as a spread? If u don't want the short strike ITm at all then u are too close

myrrdin View Post
Sorry I did not answer earlier, but I was travelling for some days to attend two conferences.

Seasonals for Natural Gas move downwards at this time of the year, and, thus, it is not a good idea to sell puts. Generally, NG can be very volatile at this time of the year, and hard to predict. On the one hand there are the seasonals, on the other hand a cold blast can result in a strong move upwards of NG prices. Volatility can be high, and option prices look tempting, but you have to be very careful.

Generally, when selling options it is not only important that the strike price is not hit. The Price of your Option can move upwards, and you have to close your Position with a loss.

Currently there are better trades around.

Best regards, Myrrdin


Sent using the futures.io mobile app

Reply With Quote
 
  #558 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,674 since Jul 2011
Thanks: 777 given, 4,643 received
Forum Reputation: Legendary


jokertrader View Post
@ron99 for coffee would u sell outright or employ the same ratio strategy as ES? Have to check if there is enough premium. I might join you guys but with a straight spread

Sent using the futures.io mobile app

In KC I am doing one short one long spread.

Here are tables from 20140922 when KC went up from 179 to 221 in 17 days. They all use 6X IM.

This one shows one short KCz4c237.5 and a KCz4c230c262.5 spread. The naked short went on margin call on 20141006. The spread had a high of 70.4% of acct used for IM and a lower draw down.

The naked short IM increased 213% on 20141006. The spread IM increased 66%.

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


This one shows one short KCf5c270 and a KCf5c250c270 spread. The naked short went on margin call on 20141006. The spread had a high of 51.6% of acct used for IM and a lower draw down. Notice that this is lower than the Dec spread.

The naked short IM increased 221% on 20141006. The spread IM increased 41%. This Jan spread IM increase is less than the Dec spread IM increase which was at 51 DTE on 20140922 vs 84 DTE for Jan.

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


This one shows a KCz4c230c262.5 spread and a KCz4c230c280 with two longs. They acted similar for this situation. So in this case I don't see the need for two longs.

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

Reply With Quote
The following 2 users say Thank You to ron99 for this post:
 
  #559 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 992 since Nov 2014
Thanks: 1,384 given, 1,115 received
Forum Reputation: Legendary

In average, seasonal charts for the LHG show a strong move downwards during the first half of December. This move is very strong in years with a relatively high price and weak or non-existing in years with a low price (eg. LH10 or LH16).

This year LH price is extremely low. Thus, I am not sure if there will be a strong move downwards until end of the year. But I assume that the October double low will hold.

I sold a first lot (20 % of standard lot size) of the LH P46, and placed further orders for the LH P45, P44, P43, P42. Average price for all orders is 1.25 ($ 500 per option).

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
  #560 (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: 380 since May 2013
Thanks: 303 given, 137 received

So to confirm the Jan spread was the one to be in


So the analysis would have shown we want to be in the Jan spread since the Max drawdown/IM increase would have been less since it had 84 DTE when opened

Also the delta increase from about -4.29 to under -11 rather than having the Dec spread which increased to over -25

and it took about 50 days to reach 50% profit target

What I could not figure out (and i am sure i dont know how to read it).. what was the delta for the Jan spread for the 250 and for the 270 to come up with delta of -4.29 at entry?

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)

Battlestations: Show us your trading desks and win $750 in prizes

August
 

Ask Me Anything (AMA) w/Rod Casilli @ Collective2

Aug 23
 

Prototyping Python Strategies (part 3, Live Trading) w/Ran Aroussi [1PM ET]

Elite only
 

Develop Strategies and Perfect Execution w/Brannigan Barrett @ Axia Futures

Elite only

Introduction to Phillip Capital futures brokerage services

Aug TBD

How Monte Carlo Analysis Can Help Your Trading w/Kevin Davey

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 Trading Reviews and Vendors 2 July 30th, 2014 05:54 AM
Diversified Trading Systems soch Trading Reviews and Vendors 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 09:04 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@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 2017-08-17 in 0.08 seconds with 19 queries on phoenix via your IP 54.80.113.185