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Diversified Option Selling Portfolio


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Diversified Option Selling Portfolio

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


myrrdin View Post
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

Indeed, this trick make it even easier to trade options on softs without have to worry inputing the wrong symbol or strike.
Thanks again.

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  #642 (permalink)
 manuel999 
Germany
 
Experience: Intermediate
Platform: TWS
Trading: Options on futures
Posts: 155 since Jul 2014
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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.

Hello Myrrdin

If you have TradeNavigator, where do you get the delayed data from?

I am with IB (TWS), but I am considering to buy TradeNavigator. But it seems to me I have to order the datafeed as well for about $60/month.

thanks

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  #643 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
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manuel999 View Post
Hello Myrrdin

If you have TradeNavigator, where do you get the delayed data from?

I am with IB (TWS), but I am considering to buy TradeNavigator. But it seems to me I have to order the datafeed as well for about $60/month.

thanks

Yes, you have to pay a fee. End of day data for Futures costs $38. But I am sure there are a lot of free sources around.

Best regards, Myrrdin

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  #644 (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


myrrdin View Post
I am currently holding the following positions in the short option portfolio:

LHJ C70
LCJ C126
LCJ P109
WH C4.3

I expect all options to expire worthless, and intend to take profit at 10 or 20 %. I will not be very patient if one of the options moves against me.

I sold the LCJ puts today, and I am happy to have a strangle now. Unfortunately I was not able to sell LH puts - I am looking at the LHJ P60 - at a reasonable price until now .

Best regards, Myrrdin

Rolled the LCJ C126 / P109 to the LCJ C124 / P106 today. I expect the LCJ contract to expire between 115 and 116.

Best regards, Myrrdin

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  #645 (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

I am currently holding the following positions in the short option portfolio:

LCJ C124
LCJ P106
LCQ P90

I am looking for the following options to sell:

LHM calls: The seasonals show downwards after the end of February, COT data is slightly bearish and fundamentals suggest a cash price at expiry of $76 (instead of a current future price of just below 80).

CTN C90: Depending on how many years you look back seasonals show downwards after end of March / end of April. COT data is extremely bearish.

Best regards, Myrrdin

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  #646 (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


myrrdin View Post
I am currently holding the following positions in the short option portfolio:

LCJ C124
LCJ P106
LCQ P90

I am looking for the following options to sell:

LHM calls: The seasonals show downwards after the end of February, COT data is slightly bearish and fundamentals suggest a cash price at expiry of $76 (instead of a current future price of just below 80).

CTN C90: Depending on how many years you look back seasonals show downwards after end of March / end of April. COT data is extremely bearish.

Best regards, Myrrdin

Was filled on the CTN C90 at 0.0130.

Best regards, Myrrdin

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  #647 (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


myrrdin View Post
I am currently holding the following positions in the short option portfolio:

LCJ C124
LCJ P106
LCQ P90

I am looking for the following options to sell:

LHM calls: The seasonals show downwards after the end of February, COT data is slightly bearish and fundamentals suggest a cash price at expiry of $76 (instead of a current future price of just below 80).

CTN C90: Depending on how many years you look back seasonals show downwards after end of March / end of April. COT data is extremely bearish.

Best regards, Myrrdin

Was filled on the LHM C86 at 1.5 .

Best regards, Myrrdin

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  #648 (permalink)
iwanjon
Indonesia
 
Posts: 10 since Apr 2015
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myrrdin View Post
Was filled on the CTN C90 at 0.0130.

Best regards, Myrrdin

Hi Myrrdin, thanks for keep posting your trading journal.

I see that most options on softs like CT are having very thin op interest/ volume along with very wide bid ask spread. Not to mention very low IV right now across the commodities board. Don't you think it is a disadvantage to sell options on them at this moment?

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  #649 (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, thanks for keep posting your trading journal.

I see that most options on softs like CT are having very thin op interest/ volume along with very wide bid ask spread. Not to mention very low IV right now across the commodities board. Don't you think it is a disadvantage to sell options on them at this moment?

You are correct, fills are not as good as for corn or beans, and IV is rather low. But I do not like buying options due to the permanent loss of time value, and cotton is very difficult for me to trade via outright futures. Thus, I stay with short options and smaller profits.

As an option seller, you have to take what you get. But it is still possible to make nice profits.

It is important to note that selling cotton calls is a directional trade, whereas Ron's ES System works even if you have no idea about the future price of the S&P index.

Best regards, Myrrdin

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



myrrdin View Post
You are correct, fills are not as good as for corn or beans, and IV is rather low. But I do not like buying options due to the permanent loss of time value, and cotton is very difficult for me to trade via outright futures. Thus, I stay with short options and smaller profits.

As an option seller, you have to take what you get. But it is still possible to make nice profits.

It is important to note that selling cotton calls is a directional trade, whereas Ron's ES System works even if you have no idea about the future price of the S&P index.

Best regards, Myrrdin

I understand what you meant. Lately IV hasn't been too friendly to us options sellers. We can only get what's in front of us, just a few opportunities here and there. LH, ZS may not be that bad right now, also some currencies futures like 6B, 6C but they are too risky for my taste.

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