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Diversified Option Selling Portfolio


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Diversified Option Selling Portfolio

  #901 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
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manuel999 View Post
Yes, the grains are becoming interesting now. I have ZC Calls on my radar.
Also the current bump in CL may be a good opportunity next week or so to sell Calls.
I also think ZB puts will be feasible in a bit.

What are you watching now?

I am almost fully invested, holding 14 different positions. (I consider a strangle or different ES puts as one position.) Thus, my radar for further positions is rather empty.

Regarding corn calls, I would currently only buy them, speculating for hot weather during pollination period. I would not sell them - there is too much risk. Weather for the second half of June is hard to predict.

I am not interested in CL calls at current prices.

And I do not have an opinion on ZB - I rarely trade the financials.

Best regards, Myrrdin

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  #902 (permalink)
 manuel999 
Germany
 
Experience: Intermediate
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myrrdin View Post
I tried to sell WU P430, but did not get a fill. Volatility might improve before tomorrows USDA report.

Currently I do not see any other interesting opportunities.

Please feel free to share and discuss your ideas.

Best regards, Myrrdin

One of the chart technicians I follow mentioned that ZW just finished an inverse Head and Shoulders formation (to breakout to the upside).
With the huge move to day we probably need to wait for a pullback.


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  #903 (permalink)
 myrrdin 
Linz Austria
 
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manuel999 View Post
One of the chart technicians I follow mentioned that ZW just finished an inverse Head and Shoulders formation (to breakout to the upside).
With the huge move to day we probably need to wait for a pullback.


I tried to sell WU calls this week, but did not get a fill. I will wait for a pullback. I look out for the next trade.

Best regards, Myrrdin

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  #904 (permalink)
 manuel999 
Germany
 
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myrrdin View Post
I tried to sell WU calls this week, but did not get a fill. I will wait for a pullback. I look out for the next trade.

Best regards, Myrrdin

you mean Puts?

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  #905 (permalink)
 myrrdin 
Linz Austria
 
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manuel999 View Post
you mean Puts?

Sorry, you are correct. I intended to sell the WU P4.30 .

Best regards, Myrrdin

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  #906 (permalink)
TraderGriz
Minnesota
 
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I got out of grain calls just in time. I started exiting a couple weeks ago. Ended up with small profits cept for one after fees was a $10 loss.

Still sitting on some energy puts that started out as strangles, I'm glad to see them go back up.

Also sitting on some cattle puts mostly feeder.

Also a couple ES puts

All trades were made before I got called back to work.

I intend on making no real money trades while working. I just don't have time. With exception maybe some ES puts.

I can give a good example, recently I had NGN puts. Leftovers from strangles, I took profit of near 90% rather soon on the calls. Anyhow my puts were less than a cent from being in the market, I tried getting out but couldn't. I got lucky I went from $540/contract to the negative to them expiring worthless with a $530/contract profit.

I still look at an watch markets when I have time but will stick to paper for now. I am watching grains since I got out too. However on paper I'm thinking about selling calls but maybe not til August or September.

Brings me to a question for more experienced sellers. At what point does one need to exit to avoid being caught. I can't blame my full service broker as they followed my direction on when to call me.

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  #907 (permalink)
 myrrdin 
Linz Austria
 
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TraderGriz View Post
I got out of grain calls just in time. I started exiting a couple weeks ago. Ended up with small profits cept for one after fees was a $10 loss.

Still sitting on some energy puts that started out as strangles, I'm glad to see them go back up.

Also sitting on some cattle puts mostly feeder.

Also a couple ES puts

All trades were made before I got called back to work.

I intend on making no real money trades while working. I just don't have time. With exception maybe some ES puts.

I can give a good example, recently I had NGN puts. Leftovers from strangles, I took profit of near 90% rather soon on the calls. Anyhow my puts were less than a cent from being in the market, I tried getting out but couldn't. I got lucky I went from $540/contract to the negative to them expiring worthless with a $530/contract profit.

I still look at an watch markets when I have time but will stick to paper for now. I am watching grains since I got out too. However on paper I'm thinking about selling calls but maybe not til August or September.

Brings me to a question for more experienced sellers. At what point does one need to exit to avoid being caught. I can't blame my full service broker as they followed my direction on when to call me.

The latest point I personally get out is when the value of the option has approximately doubled. Usually I choose an exit value in the underlying future (important support, resistance). An example: I will get out of the ES strangles, when the S&P index moves below 2400. (Some of my older puts might even make money at this time, the ES calls definitely will have made money.)

Furthermore, I exit in case the fundamentals have changed significantly.

Best regards, Myrrdin

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  #908 (permalink)
TraderGriz
Minnesota
 
Posts: 89 since Feb 2017
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Thank you

Like I mentioned I'm no longer entering as I haven't time.

I was down that much when I tried to get out. I tried getting out but couldn't. Just glad that market went above my puts an they expired worthless. I didn't intend to be in that position nor do I want to again.

I could be wrong but when there are only a few days left, I assume the ones yet holding are commercials intending on either delivering or taking delivery. Is that why I couldn't get out?

I was never down that much until 5 days from expiration. I intend when I place new trades to give my broker some DTE instruction as well.

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  #909 (permalink)
 myrrdin 
Linz Austria
 
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TraderGriz View Post
Thank you

Like I mentioned I'm no longer entering as I haven't time.

I was down that much when I tried to get out. I tried getting out but couldn't. Just glad that market went above my puts an they expired worthless. I didn't intend to be in that position nor do I want to again.

I could be wrong but when there are only a few days left, I assume the ones yet holding are commercials intending on either delivering or taking delivery. Is that why I couldn't get out?

I was never down that much until 5 days from expiration. I intend when I place new trades to give my broker some DTE instruction as well.

Please feel free to discuss your new trades here before you enter them. Take the input of all the experienced trades here, and make your own opinion.

Best regards, Myrrdin

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  #910 (permalink)
 manuel999 
Germany
 
Experience: Intermediate
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myrrdin View Post
The latest point I personally get out is when the value of the option has approximately doubled. Usually I choose an exit value in the underlying future (important support, resistance). An example: I will get out of the ES strangles, when the S&P index moves below 2400. (Some of my older puts might even make money at this time, the ES calls definitely will have made money.)

Furthermore, I exit in case the fundamentals have changed significantly.

Best regards, Myrrdin

In a strangle I tend to roll the untested side when the value of the other side has about tripled. That gives more room.
A number of strangles have been more profitable that way than originally intended.

I usually have lower deltas than you (2-3 for naked puts, 4-5 in strangles), and the doubling in price goes quite quickly with these.

I like also to check the chart first, if an obivous support/resistance value is in sight.

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