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Diversified Option Selling Portfolio
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Diversified Option Selling Portfolio

  #841 (permalink)
Trading for Fun
westhills california US
 
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ron99 View Post
You have it correct. A strangle most times is legged into. That means you place two separate orders to enter and to exit. You will pay commissions and fees on two trades.

Margin is lower on strangles. Basically one side is free and doesn't require margin.

I sold the put for 0.020. I sold the call for 0.021.

I would be careful selling NG options that close to futures.

Ron

Sorry why not place the Strangle as one order?

Please explain?

Thanks Babak

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  #842 (permalink)
Trading for Fun
Minnesota
 
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Have been watching the hog market with some interest. It has been going up for a time.
Cash is bout 75
July an August bout 81
Then October drops down to 68
My thoughts are to sell some calls at some point. I can't find enough fundamentals to support my thoughts as yet, then the technicals confuse me with the drop from August to October prices.
Anyone got thoughts on this?

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  #843 (permalink)
Market Wizard
Cleveland, OH
 
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rajab View Post
Ron

Sorry why not place the Strangle as one order?

Please explain?

Thanks Babak

My platform does not do option strangles/spreads well. Carley told me to leg in.

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  #844 (permalink)
Market Wizard
Cleveland, OH
 
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TraderGriz View Post
Have been watching the hog market with some interest. It has been going up for a time.
Cash is bout 75
July an August bout 81
Then October drops down to 68
My thoughts are to sell some calls at some point. I can't find enough fundamentals to support my thoughts as yet, then the technicals confuse me with the drop from August to October prices.
Anyone got thoughts on this?

LH Oct is pricing something different than Aug. Same like winter NG is higher than spring or fall NG. Or July soybeans is old crop and Nov beans is new crop.

You have to look at each contract separate.

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  #845 (permalink)
Trading for Fun
St Paul, MN, USA
 
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ron99 View Post
LH Oct is pricing something different than Aug. Same like winter NG is higher than spring or fall NG. Or July soybeans is old crop and Nov beans is new crop.

You have to look at each contract separate.

I would add that if you're a beginner, there are better products to trade. Hogs have a pronounced seasonal production cycle (noted above); they are cash settled against an index; they can whip around based on slaughter capacity or the way bellies, loins, hams, etc interact to form the overall carcass value (and thus the cash index); the May contract should be avoided. That's in addition to "regular stuff" like trade policy, disease concerns, dollar value, fund flows, feed costs and competing proteins.

In other words, if you're going to trade livestock fundamentally, be prepared for a long education. Maybe you can trade them price action/T.A. one expiration at a time, but make sure you look at history for a lot of years. When they trend, they can go very far, very fast.

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  #846 (permalink)
Market Wizard
Linz Austria
 
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TraderGriz View Post
Other positions I have are
ZWU c540
ZSU c1100
GFQ p120
LEQ p100
HOU p130
ESU p2165
They are all doing well, I prolly should exit as all but one are 50% profit.
Now that I'm working for the season I don't have time to research for anymore so am letting time erosion do it for now.
I still do much on paper for my learning an also I don't have time to do research. I just wouldn't feel comfortable without doing my research.

I do not like holding short calls in soybeans at this time of the year. It is a weather market. In case of eg. flooding in soybeans areas, prices will move upwards dramatically.

I still wait for higher prices to sell wheat calls, but this trade might move on without me.

I also hold some LEQ puts, but the LEQ P106 as a strangle with the LEQ C140.

I do not hold a position in CL, RB, and HO, but I intend to sell CL calls at higher prices if given the chance. I do not intend to sell puts.

Best regards, Myrrdin

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  #847 (permalink)
Trading for Fun
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CafeGrande View Post
I would add that if you're a beginner, there are better products to trade. Hogs have a pronounced seasonal production cycle (noted above); they are cash settled against an index; they can whip around based on slaughter capacity or the way bellies, loins, hams, etc interact to form the overall carcass value (and thus the cash index); the May contract should be avoided. That's in addition to "regular stuff" like trade policy, disease concerns, dollar value, fund flows, feed costs and competing proteins.

In other words, if you're going to trade livestock fundamentally, be prepared for a long education. Maybe you can trade them price action/T.A. one expiration at a time, but make sure you look at history for a lot of years. When they trend, they can go very far, very fast.

Yes I know that. If one does thier homework right they can get reimbursed with profit quickly. They tend to far an fast.

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  #848 (permalink)
Trading for Fun
Minnesota
 
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Yea myrrdin
I am having thoughts about exiting wheat an beans. The wheat I entered in late March. The beans I entered late April.
They are both at 50% profit or better. Just trying to decide if I should take profit. I normally would but since I don't have time to research for new investments I'm thinking of letting time erosion work for me.
I'd very much like others thoughts on this.

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  #849 (permalink)
Trading Apprentice
Belarus Minsk
 
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Hi to all!
What do you think about short-dated options? (e.g. ZCED - corn)
Can there be any interesting constructions with weekly-classic-short dated?
Anyone got thoughts on this?
p.s. sorry my eng not so well.
br, mdsay

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  #850 (permalink)
Market Wizard
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mdsay View Post
Hi to all!
What do you think about short-dated options? (e.g. ZCED - corn)
Can there be any interesting constructions with weekly-classic-short dated?
Anyone got thoughts on this?
p.s. sorry my eng not so well.
br, mdsay

I often sell short-dated options. At this time of the year I am interested in options based on the November (soybeans) or December (corn) contracts, and ending in June or July. They move less volatile than the July or August contracts. Disadvantage: The fills are worse than options for the July or August contracts.

I rarely trade the weekly options. I only use them as a protection in case of a report.

Best regards, Myrrdin

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