Diversified Option Selling Portfolio - Options on Futures | futures io social day trading
futures io futures trading


Diversified Option Selling Portfolio
Updated: Views / Replies:55,209 / 1,101
Created: by myrrdin Attachments:75

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 75  
 
Thread Tools Search this Thread
 

Diversified Option Selling Portfolio

  #941 (permalink)
Trading for Fun
Minnesota
 
Futures Experience: Intermediate
Platform: Sierra chart
Favorite Futures: Orange juice
 
Posts: 86 since Feb 2017
Thanks: 163 given, 36 received


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.

Reply With Quote
 
  #942 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,720 received
Forum Reputation: Legendary


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.

Reply With Quote
The following 3 users say Thank You to ron99 for this post:
 
  #943 (permalink)
Elite Member
Germany
 
Futures Experience: Intermediate
Platform: TWS
Favorite Futures: Options on futures
 
Posts: 105 since Jul 2014
Thanks: 211 given, 103 received



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.

Reply With Quote
The following user says Thank You to manuel999 for this post:
 
  #944 (permalink)
Trading for Fun
Minnesota
 
Futures Experience: Intermediate
Platform: Sierra chart
Favorite Futures: Orange juice
 
Posts: 86 since Feb 2017
Thanks: 163 given, 36 received


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

Reply With Quote
 
  #945 (permalink)
Trading Apprentice
Henderson, NV, USA
 
Futures Experience: Advanced
Platform: Futures Online
Favorite Futures: Futures
 
Posts: 34 since Feb 2015
Thanks: 46 given, 13 received

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.

Reply With Quote
The following user says Thank You to Calamari88 for this post:
 
  #946 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 1,024 since Nov 2014
Thanks: 1,413 given, 1,179 received
Forum Reputation: Legendary


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

Reply With Quote
The following 5 users say Thank You to myrrdin for this post:
 
  #947 (permalink)
Trading for Fun
Minnesota
 
Futures Experience: Intermediate
Platform: Sierra chart
Favorite Futures: Orange juice
 
Posts: 86 since Feb 2017
Thanks: 163 given, 36 received

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

Reply With Quote
 
  #948 (permalink)
Trading for Fun
Minnesota
 
Futures Experience: Intermediate
Platform: Sierra chart
Favorite Futures: Orange juice
 
Posts: 86 since Feb 2017
Thanks: 163 given, 36 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
 
  #949 (permalink)
Trading for Fun
Minnesota
 
Futures Experience: Intermediate
Platform: Sierra chart
Favorite Futures: Orange juice
 
Posts: 86 since Feb 2017
Thanks: 163 given, 36 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
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 1,024 since Nov 2014
Thanks: 1,413 given, 1,179 received
Forum Reputation: Legendary



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

Reply With Quote
The following 2 users say Thank You to myrrdin for this post:

Reply



futures io > > > > Diversified Option Selling Portfolio

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Alternative Views on Traditional Tools w/Rhonda Jones

Elite only

FuturesTrader71: TBA

Elite only

Al Brooks: TBA

Elite only

Jigsaw Trading: TBA

Oct 19

RandBots: TBA

Oct 24
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Webinar: Option Selling with and without insurance w/Carley Garner Big Mike Options on Futures 50 March 24th, 2015 05:52 PM
Portfolio Trader no erocla MultiCharts 1 November 27th, 2014 10:56 AM
"DTS" Diversified Trading System - Anybody out there!? ShaunG Trading Reviews and Vendors 2 July 30th, 2014 05:54 AM
Diversified Trading Systems soch Trading Reviews and Vendors 3 February 18th, 2013 09:12 PM
Portfolio Construction dgresens Psychology and Money Management 3 October 25th, 2012 03:33 AM


All times are GMT -4. The time now is 11:32 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-09-20 in 0.08 seconds with 19 queries on phoenix via your IP 54.80.77.124