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Diversified Option Selling Portfolio
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Diversified Option Selling Portfolio

  #941 (permalink)
Trading for Fun
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TraderGriz View Post
Guess you are correct 2.95p-3.45c was placed on 4-17. I was not correct when I said March. It was April when I entered. I know it was a pretty tight window but didn't expect it to go as low as it did.

And a bit short on time. That prolly why tight window.

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  #942 (permalink)
Market Wizard
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TraderGriz View Post
Guess you are correct 2.95p-3.45c was placed on 4-17. I was not correct when I said March. It was April when I entered. I know it was a pretty tight window but didn't expect it to go as low as it did.

Whoa. You sold a 2.95-3.45 strangle 38 DTE when futures were 3.251? That is WAY too close.

That put was -18.49 delta. Only 9.3% OTM. Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.

Even if you are selling lower DTE, you need to be further OTM. You need to follow your own rule of 15-20% OTM. For 20% that would have been 2.60-3.90.

June (71 DTE) 2.60 was $50 and June 3.90 was $110.

July 2.60 was $110 and July 3.90 was $410. Much higher premium than June at same strikes.

On April 27 I sold Aug 2.60-4.50 strangle for $430.

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  #943 (permalink)
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TraderGriz View Post
And a bit short on time. That prolly why tight window.

A small thing: often these uneven strikes sometimes have a much lower liquidity than the even one.
3.0 - 3.5 may have had a better liquidity.

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  #944 (permalink)
Trading for Fun
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manuel999 View Post
A small thing: often these uneven strikes sometimes have a much lower liquidity than the even one.
3.0 - 3.5 may have had a better liquidity.


I have many more In energies all leftover

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  #945 (permalink)
Trading Apprentice
Henderson, NV, USA
 
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Crop reports timing

Is there a strategy to timing a trade for selling options based on when the quarterly crop reports come out? For example do you all avoid selling options in the weeks leading up to the report? I ask because I made the mistake of selling ZM calls the week before the report came out on Jun 30th.

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  #946 (permalink)
Market Wizard
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Calamari88 View Post
Is there a strategy to timing a trade for selling options based on when the quarterly crop reports come out? For example do you all avoid selling options in the weeks leading up to the report? I ask because I made the mistake of selling ZM calls the week before the report came out on Jun 30th.

In case you are a beginner I would strongly recommend not to hold short options during monthly and quarterly USDA reports. This is valid for grains, beans and meats.

There are reports that are known for often causing large moves. And others that usually are not that important. But even most experienced traders I know are very careful regarding these reports and stay out of the markets or keep lot sizes small.

Best regards, Myrrdin

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  #947 (permalink)
Trading for Fun
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Myrrdin I have question I was long on wheat placed sometime back, I was up until recently. I bailed with a loss. Not too bad as I had time erosoin in my favor.. Do you think this all an emotional? Granted they are having dry spells in the west by trade I am a road foreman I am battling with torencel rains? It is causing both meat an grain to rise artificially? Particular wheat?

Any advice from more expierienced that I would be welcome

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  #948 (permalink)
Trading for Fun
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ron99 View Post
Whoa. You sold a 2.95-3.45 strangle 38 DTE when futures were 3.251? That is WAY too close.

That put was -18.49 delta. Only 9.3% OTM. Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.

Even if you are selling lower DTE, you need to be further OTM. You need to follow your own rule of 15-20% OTM. For 20% that would have been 2.60-3.90.

June (71 DTE) 2.60 was $50 and June 3.90 was $110.

July 2.60 was $110 and July 3.90 was $410. Much higher premium than June at same strikes.

On April 27 I sold Aug 2.60-4.50 strangle for $430.

I'm learning how to sell. It was more risky than thought but ended for the good.

Reply With Quote
 
  #949 (permalink)
Trading for Fun
Minnesota
 
Futures Experience: Intermediate
Platform: Sierra chart
Favorite Futures: Orange juice
 
Posts: 89 since Feb 2017
Thanks: 176 given, 38 received


ron99 View Post
Whoa. You sold a 2.95-3.45 strangle 38 DTE when futures were 3.251? That is WAY too close.

That put was -18.49 delta. Only 9.3% OTM. Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.

Even if you are selling lower DTE, you need to be further OTM. You need to follow your own rule of 15-20% OTM. For 20% that would have been 2.60-3.90.

June (71 DTE) 2.60 was $50 and June 3.90 was $110.

July 2.60 was $110 and July 3.90 was $410. Much higher premium than June at same strikes.

On April 27 I sold Aug 2.60-4.50 strangle for $430.

I'm learning how to sell. It was more risky than thought but ended for the good.

Reply With Quote
 
  #950 (permalink)
Market Wizard
Linz Austria
 
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TraderGriz View Post
Myrrdin I have question I was long on wheat placed sometime back, I was up until recently. I bailed with a loss. Not too bad as I had time erosoin in my favor.. Do you think this all an emotional? Granted they are having dry spells in the west by trade I am a road foreman I am battling with torencel rains? It is causing both meat an grain to rise artificially? Particular wheat?

Any advice from more expierienced that I would be welcome

Sorry - I do not understand your question. Perhaps because I am not a native speaker and misunderstand some words.

You write that you were long wheat, and bailed with a loss. Wheat is moving up since middle of May. When did you enter and exit your trade ?

What do you think is emotional? Your trading ? The trading of the crowd resulting in the wheat price ?

Please formulate your question in a way that enables me with my average knowledge of English to fully understand it.

Best regards, Myrrdin

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