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every Friday I sell a strangle and I wait the weekly options to expire. If one of them goes ITM I am gonna buy/sell the future to protect the option. Most of the times the options expire, sometimes I am forced to buy/sell the future, sometimes after I bought the future it goes against me so I am forced to stop it, but in the end it is a profitable strategy.
I calculate the strikes based on my own algorithm, then I use a stop loss on the future based again on the strangle interval.
I may be totally wrong, but when there is a huge drop like today in CC, sometimes there is 1 or 2 days more of drop of the longs exiting. We'll see this time.
I checked some large drops of CC in 2017. Often there was no more large move downwards, and volatility probably dropped. Eg. January, 11th, 19th, 26th, February, 28th. Prices went further downwards after the move on April, 7th.
But I am aware that CC price could move further downwards. This is why I prefer the December contract to the September contract.
On 4/27/17 I sold NGq7p260c450 for 0.027. I finished exiting today at 0.014. ROI is 8.3%. Days held is 28.
This strangle was 90 DTE when entered. The same day I entered the same strikes but for Sep (123 DTE). Those are only 72% of opening price while the Aug I exited at 52%. Aug had a quicker drop and higher ROI.
