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Diversified Option Selling Portfolio
Updated May 26, 2022
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Diversified Option Selling Portfolio
July 3rd, 2017, 11:32 AM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
TraderGriz
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.
Can you help answer these questions
Best Threads (Most Thanked)
July 3rd, 2017, 11:39 AM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
TraderGriz
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.
strangle 38 DTE when futures were 3.251? That is WAY too close.delta . Only 9.3% OTM . Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.premium than June at same strikes.
July 3rd, 2017, 12:03 PM
Germany
Experience: Intermediate
Platform: TWS
Trading: Options on futures
Posts: 155 since Jul 2014
Thanks Given: 341
Thanks Received: 142
TraderGriz
And a bit short on time. That prolly why tight window.
July 3rd, 2017, 01:37 PM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
manuel999
A small thing: often these uneven strikes sometimes have a much lower liquidity than the even one.
July 3rd, 2017, 06:24 PM
Henderson, NV, USA
Posts: 63 since Feb 2015
Thanks Given: 91
Thanks Received: 33
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.
July 4th, 2017, 05:51 AM
Linz Austria
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,688
Thanks Received: 2,651
Calamari88
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.
July 4th, 2017, 09:20 AM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
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?
July 4th, 2017, 11:17 AM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
ron99
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.
July 4th, 2017, 12:33 PM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
ron99
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.
July 4th, 2017, 01:26 PM
Linz Austria
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,688
Thanks Received: 2,651
TraderGriz
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
Last Updated on May 26, 2022
