NexusFi: Find Your Edge


Home Menu

 





Diversified Option Selling Portfolio


Discussion in Options

Updated
      Top Posters
    1. looks_one myrrdin with 812 posts (1,274 thanks)
    2. looks_two ron99 with 207 posts (489 thanks)
    3. looks_3 manuel999 with 109 posts (108 thanks)
    4. looks_4 TraderGriz with 66 posts (26 thanks)
      Best Posters
    1. looks_one SMCJB with 2.4 thanks per post
    2. looks_two ron99 with 2.4 thanks per post
    3. looks_3 myrrdin with 1.6 thanks per post
    4. looks_4 manuel999 with 1 thanks per post
    1. trending_up 283,087 views
    2. thumb_up 2,296 thanks given
    3. group 139 followers
    1. forum 1,598 posts
    2. attach_file 93 attachments




 
Search this Thread

Diversified Option Selling Portfolio

  #391 (permalink)
 myrrdin 
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

Bought back the KCH C240 with a profit of 30 %.

Intend to sell again at a higher price. We are moving into the blooming period, and changing weather forecasts might result in a higher volatility.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Trade idea based off three indicators.
Traders Hideout
REcommedations for programming help
Sierra Chart
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
MC PL editor upgrade
MultiCharts
Pivot Indicator like the old SwingTemp by Big Mike
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Spoo-nalysis ES e-mini futures S&P 500
29 thanks
Just another trading journal: PA, Wyckoff & Trends
25 thanks
Tao te Trade: way of the WLD
24 thanks
Bigger Wins or Fewer Losses?
23 thanks
GFIs1 1 DAX trade per day journal
18 thanks
  #392 (permalink)
 myrrdin 
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

Bought back the CTZ C80 with a profit of 60 %.

Intend to sell again at a higher price.

Best regards, Myrrdin

Started this thread Reply With Quote
  #393 (permalink)
 myrrdin 
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


Bought back the LCV P106 with a loss of approx. 120 %.

Intend to sell again after a reversal.

Best regards, Myrrdin

Started this thread Reply With Quote
  #394 (permalink)
meg10
hudson ohio summit
 
Posts: 5 since Aug 2016
Thanks Given: 4
Thanks Received: 5

Myrrdin,

Do you intend to post your trades when you initiate them. I'd like to track your ideas. It is greatly appreciated.

Reply With Quote
Thanked by:
  #395 (permalink)
 myrrdin 
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


meg10 View Post
Myrrdin,

Do you intend to post your trades when you initiate them. I'd like to track your ideas. It is greatly appreciated.

I am not quite sure what you mean. I post the trades after I received a fill on the same day or (in rare cases) the day after. I am not sitting in front of a computer all day.

I will use this opportunity to explain what I want to achieve with this thread for traders with limited experience in option selling:

I want to demonstrate that it is possible to operate an option selling account, which is sufficiently diversified to reduce clump risk. I want to discuss criteria for selecting suited commodities, and for entering / exiting trades. I want to show warning signs. And try to answer questions in regard to option selling. In one sentence: I want to give traders with little experience in option selling a basis to check, if this strategy is suited for them, and to improve quickly.

I do not intend to publish trades that can be followed exactly by others. And I do not intend selling my trading signals now or in the foreseeable future. I prefer making money via trading and not via selling a newsletter.

Additionally I like discussing considerations for trades, and other issues related to option selling, with everybody here. Thus, all trade suggestions, contributions to criteria for selecting, entering, and exiting trades, and principal questions regarding option selling are highly welcome.

Best regards, Myrrdin

Started this thread Reply With Quote
  #396 (permalink)
 myrrdin 
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

Sold the LCZ P99 (suggestion Carley) and the LCG P96 to replace the LHV puts liquidated last week.

Future prices are significantly lower than cash prices, and futures are oversold. I expect prices going sidewards / upwards from here.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:
  #397 (permalink)
uuu1965
Riga Latvia
 
Posts: 107 since Jan 2013
Thanks Given: 441
Thanks Received: 72


myrrdin View Post
Sold the LHZ P99 (suggestion Carley) and the LHG P96 to replace the LHV puts liquidated last week.

Future prices are significantly lower than cash prices, and futures are oversold. I expect prices going sidewards / upwards from here.

Best regards, Myrrdin

Sold LEZ P100/94 spread at 1.125.

Reply With Quote
  #398 (permalink)
 myrrdin 
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


meg10 View Post
Myrrdin,

Do you intend to post your trades when you initiate them. I'd like to track your ideas. It is greatly appreciated.

In case you want to track how an option selling account works without risking your money, I suggest to open a paper account and trade short option trades for a year. Enter your trades, perhaps based on some of my trades, discuss your considerations for trades in this thread, and gain some experience. (Be assured that trading your own money will again be a different story.)

For your information: There are many trades I do not publish, as they are not short option trades. But they may be related to my short option trading, eg. to achieve a USD-neutral Portfolio or for other hedging activities.

Please feel free to ask questions. There are some very experienced traders around, who will try to give you answers.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:
  #399 (permalink)
 myrrdin 
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

Found an interesting statistic regarding long periods of the S&P index moving less than 1 % per day (end of day).

The current period of 36 days is not the longest - there are 7 longer periods of up to 79 days (1995) since 1990.

It is interesting to note that the first weeks after such periods since 1990 (12 events) never show drastic moves of the S&P index. There are only 2 cases where prices moved down more than 5 % within two or three months after the event.

The figures are from a paid subscription. Thus, I do not want to get into more details.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:
  #400 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206



myrrdin View Post
Found an interesting statistic regarding long periods of the S&P index moving less than 1 % per day (end of day).

The current period of 36 days is not the longest - there are 7 longer periods of up to 79 days (1995) since 1990.

It is interesting to note that the first weeks after such periods since 1990 (12 events) never show drastic moves of the S&P index. There are only 2 cases where prices moved down more than 5 % within two or three months after the event.

The figures are from a paid subscription. Thus, I do not want to get into more details.

Best regards, Myrrdin

Very interesting. I can't replicate the data exactly but I get something very similar. Agree with the current 36 days, but show a high of 100 consecutive days back in 1995. Also show a period of 398 consecutive days with moves of less than 1% back in 1964/65. Also agree that this isn't predictive of a major market move to come, R squared's all ~ 0.01 for the simple regressions I ran. (Streak length vs 20 day lowest low etc).

Reply With Quote
Thanked by:




Last Updated on May 26, 2022


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts