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I sell ES calls once in a while. But whereas I hold ES puts almost all of the time, exiting only during severe drawdowns or a high potential for a severe drawdown (eg. Brexit vote, US Presidential vote), I consider selling calls as a directional trade. For example, I sold calls when the ES had moved up to 2400, and I expected the index to pause for a while.
When selling options it is important not to get greedy. We have to take what we can get. In times with low volatility it is less than in times with high volatility.
To sell AUG 128 Call and buy AUG 130 Call.
ROI% seems reasonable.
IM is reasonable.
Are seasonal as important as some other commodities?
What are some of the things I should watch out for?
No not true, kinda of like the hundreds of ES puts you supposedly closed during the Yuan devaluation. Anybody that spoke up about how much your strategy was insanely leveraging, you put them on ignore.
What about the guy that lost 200k out of his retirement following your strategy? Are you here just to push commissions for a broker?
I encourage all to go back and read the thread during Aug 15. If what Ron said was true he would have lost milllions because he supposedly owned the majority of contracts at certain strikes. I had a tough time rolling the few contracts that I owned, much less the hundreds Ron supposedly sold. Dont be fooled by this guy
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp
I invited you to post your trading ideas and comments in this thread. And I asked you to delete the text referring to your discussion with Ron.
Instead you posted another text referring to your dispute with Ron.
I do not accept statements regarding personal disputes that have nothing to do with posts in this thread. I ask you again to delete your posts regarding your discussion with Ron. Please move them to your own thread.
Everyone here posts his trading ideas, some of us even their trades. I appreciate everyone sharing his thoughts, activities, and experience. But this is not a paid subscription service. Account sizes and willingness to take larger or smaller risks are different. Following a strategy posted here without fully understanding it and its risk in my opinion is grossly negligent.
Market correlations. Mostly looking at selling options now, I am looking at it more. As seasonals. i have a hard time figuring how some unrelated markets effect each other. EG hogs an soybeans. They might have a correlation that I don't see. I can somewhat understand trade within grains or meats What I really am wondering is correlations within the markets?
Many commodity markets only show weak correlations with each other. and this helps option sellers in diversifying their portfolio.
Referring to your example: Hogs and soybeans prices are related in two ways: Exports of both commodities are supported by a lower US$, and soymeal is fed to hogs. But I would consider this to be a weak correlation.
The correlation between corn and soybeans is significantly stronger, as they can replace each other as a crop in the fields. Corn is planted earlier, and if it cannot be planted due to weather farmers might switch to soybeans, which can be planted later.
There are many similar correlations between different grains. It depends on weather and on the price ratio, which grain is planted.
I am not sure if I understand your question completely. Please ask again if you need more information.
You might not understand me because I wasn't sure how to put to words.
I see the relation between feeder cattle an live cattle or crude an fuel oil. You mentioned corn an soybeans. Others talk of cattle an corn. A better way to ask is about spread tradeing utilizing different markets that correlate.
