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Diversified Option Selling Portfolio


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Diversified Option Selling Portfolio

  #801 (permalink)
 myrrdin 
Linz Austria
 
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manuel999 View Post
Sold CLU7 C 61
I don't see a good reason for the sudden bounce in the last week and a move downward again looks more probable.

If it moves against me I will probably first make a strangle out of it to protect the call since it usually does not increase IM.

Potential reasons for the recent move upwards of CL are:

Potential oil worker strike in Nigeria,
trouble with Angolas oil exports,
oil and gasoline stocks fell in Belgium / Netherlands.

I sell many naked options, but usually not CL calls. A terroristic attack will cause a major move of the CL and a severe rise of volatility easily. I prefer to buy calls above the short calls.

Best regards, Myrrdin

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  #802 (permalink)
 myrrdin 
Linz Austria
 
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manuel999 View Post
I also sold a small position on AAPL P 146 (June 23).
Lately I sold Puts on stocks in an attempt to further diversify.
Always small positions.

I only sell puts on stocks, if I want to buy the underlying.

In my opinion, it is more profitable to sell puts on index futures due to the lower margin.

Best regards, Myrrdin

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  #803 (permalink)
 manuel999 
Germany
 
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myrrdin View Post
I only sell puts on stocks, if I want to buy the underlying.

In my opinion, it is more profitable to sell puts on index futures due to the lower margin.

Best regards, Myrrdin

I agree with you.
I also only sell stock puts when I am ok with owning these stock if I get assigned. (The blue cap companies which some dividends)

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  #804 (permalink)
 ron99 
Cleveland, OH
 
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We have completed 18 weeks this year of oil data. Starting with week 18 till week 37 the prior 5 years have shown decreases in oil inventory through this time frame.



But here is how CLu has performed the last 7 years


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  #805 (permalink)
 manuel999 
Germany
 
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ron99 View Post
We have completed 18 weeks this year of oil data. Starting with week 18 till week 37 the prior 5 years have shown decreases in oil inventory through this time frame.



But here is how CLu has performed the last 7 years


Thanks. This is a great overview.
Which app/site do you use for this?

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  #806 (permalink)
 ron99 
Cleveland, OH
 
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manuel999 View Post
Thanks. This is a great overview.
Which app/site do you use for this?

My own.

https://public.tableau.com/profile/ron.h8870

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  #807 (permalink)
 manuel999 
Germany
 
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I am thinking about starting to sell August ZB Calls.


Pro
- the seasonal high is upon us
- trouble in Brazil may cause the farmers there to sell beans
- we seem to have a small bounce right now, but the overall trend seems to be down
- in the CoT, commercials are quite long, which seems to indicate they expect lower prices

Con
- it may be a bit too early
- chart indicates we may have had a consolidation and some upside is possible

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  #808 (permalink)
 myrrdin 
Linz Austria
 
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manuel999 View Post
I am thinking about starting to sell August ZB Calls.


Pro
- the seasonal high is upon us
- trouble in Brazil may cause the farmers there to sell beans
- we seem to have a small bounce right now, but the overall trend seems to be down
- in the CoT, commercials are quite long, which seems to indicate they expect lower prices

Con
- it may be a bit too early
- chart indicates we may have had a consolidation and some upside is possible

I am not sure what you intend to sell. ZB stands for US bonds, but you write about brazilian farmers selling beans. Please clarify.

Best reagards, Myrrdin

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  #809 (permalink)
 manuel999 
Germany
 
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myrrdin View Post
I am not sure what you intend to sell. ZB stands for US bonds, but you write about brazilian farmers selling beans. Please clarify.

Best reagards, Myrrdin

I am sorry, typo. I mean ZS.
I am thinking about ZSQ17.

Thanks.

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  #810 (permalink)
 myrrdin 
Linz Austria
 
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manuel999 View Post
I am sorry, typo. I mean ZS.
I am thinking about ZSQ17.

Thanks.

I also intend to sell soybeans calls, but not at this time, not at current prices, and not the SQ contract.

1. The seasonal high for the SQ contract is - according to MRCI data for the 5 years and the 15 years pattern - end of June / early July.

2. Large specs almost hold a record short position.

3. The SQ contract is an old crop contract. In case of strong Chinese buying, of transport problems in Brazil or a strike in this country prices for the old crop contracts will move up sharper than for new corp contracts.

I intend to sell SX options with an expiry perhaps in July on a strong move upwards of the underlying contract, caused by one of the problems mentioned above. I will definitey not sell calls at a price of the underlying SX contract of below 980, and I would prefer to sell at 1030.

Best regards, Myrrdin

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Last Updated on May 26, 2022


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