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Diversified Option Selling Portfolio


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Diversified Option Selling Portfolio

  #631 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
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jokertrader View Post
Are we saying that there will be some reverse Mexican tax.. and then the imports into Mexico will fall? and send LH sky rocketing?

Is that why u are out?? thinking of initiating a CCS on LHJ and wondering

Yes, this is one possibility. In this case there should be many hogs on the US market, and the price of hogs should move downwards. Or Mr. Trump finds a deal that the Mexicans like, and the fear of a US Import tax disappears. And hog prices move upwards.

Another issue regrding fundamentals is the frozen stocks report of last week, which showed a surprizingly tiny stock of frozen bellies.

I prefer selling options when I think I understand the fundamentals of the commodity. Currently I do not. That is why I closed my position.

Best regards, Myrrdin

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  #632 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
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Thanks Received: 2,651

Sold the LCQ P90 today, which seem to be undervalued. The CoF report was bearish for April and June contracts, but August contract was drawn down with them.

Best regards, Myrrdin

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  #633 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
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ron99 View Post
Seasonally KCk peaks today. I am selling a KCk7c220c240 spread.

I sold it for 0.21 on Jan 11th and today bought it back at 0.10. Using 6xIM the MROI was 3.5%. 20 days held. Max draw down was 4.1% and max part of account used to cover IM was 19% even though futures at one point were 6.40 higher than the day I entered the position. In fact today is the first time since I entered the position that futures are lower than the day I entered the position.

That's why I like selling options so much. I can be wrong on the direction of the futures and still make money.

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  #634 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
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myrrdin View Post
Just sold the CTK C80.

COT data is bearish, and acreage is expected to rise in the US.

Will be out on a close above the 2016 high.

Best regards, Myrrdin

Bought back the CTK C80 with a loss of approx. 65 %. Hit stop loss.

Intend to re-enter at a higher level and probably for the July contract, if given the opportunity.

COT data is very bearish ...

Best regards, Myrrdin

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  #635 (permalink)
iwanjon
Indonesia
 
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myrrdin View Post
Bought back the CTK C80 with a loss of approx. 65 %. Hit stop loss.

Intend to re-enter at a higher level and probably for the July contract, if given the opportunity.

COT data is very bearish ...

Best regards, Myrrdin

Hi Myrrdin,
Do you pay additional monthly cost for datafeed to be able to trade options on softs? If so how much?
Thank you.

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  #636 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


iwanjon View Post
Hi Myrrdin,
Do you pay additional monthly cost for datafeed to be able to trade options on softs? If so how much?
Thank you.

No, I do not pay for datafeed to trade softs.

For selecting trades I work with delayed data. I receive it from Trade Navigator, but I assume there are many sources for delayed data.

To enter the trade I use live data from DeCarley Trading. The trick is: You enter the option in the field "order entry". If you know click sell or buy you see the live bid or ask price.

I hope I could make the procedure clear.

Best regards, Myrrdin

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  #637 (permalink)
 ron99 
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


iwanjon View Post
Hi Myrrdin,
Do you pay additional monthly cost for datafeed to be able to trade options on softs? If so how much?
Thank you.

I don't pay either.

On the Zaner360 platform in the Order Entry box, enter the symbol, make the order type 'Limit" then click on "Sell", the limit price automatically filled in is the real time best bid. If you click on "buy" the limit price is now the real time best ask.

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  #638 (permalink)
iwanjon
Indonesia
 
Posts: 10 since Apr 2015
Thanks Given: 60
Thanks Received: 5


myrrdin View Post
No, I do not pay for datafeed to trade softs.

For selecting trades I work with delayed data. I receive it from Trade Navigator, but I assume there are many sources for delayed data.

To enter the trade I use live data from DeCarley Trading. The trick is: You enter the option in the field "order entry". If you know click sell or buy you see the live bid or ask price.

I hope I could make the procedure clear.

Best regards, Myrrdin


Aaaarrgh, that's how you do it , great trick. That explains it. I too feel as retail trader it's just not worth it to pay quite expensive monthly fee for the softs' datafeed, while not trade so often on them.

Actually I can see realtime data for softs from my TOS account. So that'll make it easier. Only thing is must be careful when inputing the correct option symbol in 'order entry' tab in Zaner360.

Thanks again Myrrdin. Been enjoying and learn a lot from your posts. Keep up the great job.

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  #639 (permalink)
iwanjon
Indonesia
 
Posts: 10 since Apr 2015
Thanks Given: 60
Thanks Received: 5


ron99 View Post
I don't pay either.

On the Zaner360 platform in the Order Entry box, enter the symbol, make the order type 'Limit" then click on "Sell", the limit price automatically filled in is the real time best bid. If you click on "buy" the limit price is now the real time best ask.

Thanks a lot ron99. Your posts help me a lot to becoming more and more confident in option selling on futures.

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  #640 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651



iwanjon View Post
Aaaarrgh, that's how you do it , great trick. That explains it. I too feel as retail trader it's just not worth it to pay quite expensive monthly fee for the softs' datafeed, while not trade so often on them.

Actually I can see realtime data for softs from my TOS account. So that'll make it easier. Only thing is must be careful when inputing the correct option symbol in 'order entry' tab in Zaner360.

Thanks again Myrrdin. Been enjoying and learn a lot from your posts. Keep up the great job.

There is another trick to avoid inputing a wrong option symbol.

Open the option chain for the contract in Zaner360. It will not show prices, but it will show all option contracts. Click the one you want to sell, and it will appear in the field "order entry".

Best regards, Myrrdin

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Last Updated on May 26, 2022


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