Diversified Option Selling Portfolio - futures io
futures io



Diversified Option Selling Portfolio


Discussion in Options

Updated
      Top Posters
    1. looks_one myrrdin with 807 posts (1,256 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 195,883 views
    2. thumb_up 2,275 thanks given
    3. group 136 followers
    1. forum 1,588 posts
    2. attach_file 93 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Diversified Option Selling Portfolio

(login for full post details)
  #1571 (permalink)
mosalem2003
Toronto
 
 
Posts: 91 since Apr 2019
Thanks: 88 given, 21 received


myrrdin View Post
I do a lot of option selling with Interactive Brokers.

Regarding margin, they are ok as long as you do not sell naked.

Regarding order entering for spreads, they offer everything I wish.

As an Austrian, I also have the problem that I am not accepted as a customer by many US brokers.

Best regards, Myrrdin

Thanks for the prompt response @myrrdin -- I assumed that their main stream is stocks' options which is a plus to options on Futures. I think the options on futures offer more flexibility than options on stocks in terms of margins, liquidity, and 23hr/day, pricing. Some folks tried to convince me to sell the SPY options or commodity stocks options as USO, UNG but I still prefer the Futures' options - may be I am biased as coming from Futures background - what do you think ?
On another note, it seems the OptionsTrader at TWS is comprehensive tool for our requirements as per your experience?

Reply With Quote

Can you help answer these questions
from other members on futures io?
TD Sequential for NT or MW?
Platforms and Indicators
Color templates for MT5 40 items
Platforms and Indicators
For the experts of Metastock
Platforms and Indicators
Portfolio Management Tool/Software
Psychology and Money Management
MacdBB V402 NT804 + gradient + pullback not working on N …
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Webinar: Happy Hour w/Cem Karsan
37 thanks
Avoiding Account Killing Freight Trains
27 thanks
QG mini Natural Gas ( Position size ) calculation
19 thanks
The Beast Slayer, Lances NQ Trading Journal
15 thanks
Losing faith...
13 thanks
 
(login for full post details)
  #1572 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,860 since Nov 2014
Thanks: 3,029 given, 2,531 received


mosalem2003 View Post
Thanks for the prompt response @myrrdin -- I assumed that their main stream is stocks' options which is a plus to options on Futures. I think the options on futures offer more flexibility than options on stocks in terms of margins, liquidity, and 23hr/day, pricing. Some folks tried to convince me to sell the SPY options or commodity stocks options as USO, UNG but I still prefer the Futures' options - may be I am biased as coming from Futures background - what do you think ?
On another note, it seems the OptionsTrader at TWS is comprehensive tool for our requirements as per your experience?

You are welcome.

I prefer selling options on futures. When selling options on USO etc, you have to watch closely which contracts they are invested in. The oil market in spring of 2020 showed us how important this matter is.

For me the capabilities of TWS for selling options are absolutely sufficient and better than other tools I know.

Best regards, Myrrdin

Started this thread Reply With Quote
The following user says Thank You to myrrdin for this post:
 
(login for full post details)
  #1573 (permalink)
mosalem2003
Toronto
 
 
Posts: 91 since Apr 2019
Thanks: 88 given, 21 received



myrrdin View Post
You are welcome.

I prefer selling options on futures. When selling options on USO etc, you have to watch closely which contracts they are invested in. The oil market in spring of 2020 showed us how important this matter is.

For me the capabilities of TWS for selling options are absolutely sufficient and better than other tools I know.

Best regards, Myrrdin

Thanks a lot @myrrdin -- This is a good point to take into account regarding the ETF underneath Future contract, and the fact that they invest in Futures is enough to trade directly the Futures market not the ETF market.. Thanks for emphasizing this point..

Reply With Quote
The following user says Thank You to mosalem2003 for this post:
 
(login for full post details)
  #1574 (permalink)
mosalem2003
Toronto
 
 
Posts: 91 since Apr 2019
Thanks: 88 given, 21 received

I am planning to switch from Futures to Options on Futures in terms of Intraday and swing trading to avoid the premature stops and high volatility of the futures and have a lasting power beyond the daily close without margin requirements.

Simply, if I accumulate OTM calls in dips or accumulate OTM Puts at rally. May be adoptions of being only long on ES or MES or only short on ZN or ZB ...

Two things can be done buying the OTM directional long Call or Selling credit bull Put spread. The latter needs and margin and it's limited profit. The former one with an OTM like a price technical target or may be even 0.25 would appreciate to good delta if trade evolves ... The other factor should we trade it on weeklies or monthly to avoid the decay as long as we r trading he direction. The lo Inger maturity might be more expensive but worth as if u have a crash in ES it can recover in a week or two or may be stick to weeklies and just exit with the loss and roll with a higher quantity, etc...

Any feedback from any one who trades options on futures as intraday or swing is highly appreciated...

Sent using the futures.io mobile app

Reply With Quote
The following 2 users say Thank You to mosalem2003 for this post:
 
(login for full post details)
  #1575 (permalink)
 Big Mike 
Site Administrator
Swing Trader
Data Scientist & DevOps
Manta, Ecuador
 
Experience: Advanced
Platform: Custom solution
Trading: Futures & Crypto
 
Big Mike's Avatar
 
Posts: 50,131 since Jun 2009
Thanks: 32,602 given, 98,793 received

Just a note that we have an upcoming webinar that you should be interested in:



Mike

We're here to help -- just ask

For the best trading education, watch our webinars
Searching for trading reviews? Review this list

Follow us on Twitter, YouTube, and Facebook

Support our community as an Elite Member:
https://futures.io/elite/

Visit other sites? Please spread the word about your experience with our community!
Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following 3 users say Thank You to Big Mike for this post:
 
(login for full post details)
  #1576 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,860 since Nov 2014
Thanks: 3,029 given, 2,531 received

I sold the KWZ C900-C1000.

This trade is a good example for my strategy to hedge one trade against another. I re-entered the KW-W futures spread a short time ago around -40. This spread usually works well when wheat price moves upwards. Now the price of KW looks overbought. Thus, I entered the option spread to hedge a potential setback of the KW-W spread. In case of the option spread will be in danger the KW-W should make great profit - significantly larger than the loss in the option spread.

Volatility of KW is extremely high. Thus, I chose the December contract to be able to take profit for a long time.

I intend to buy back the options in case the futures move beyond 800.

Best regards, Myrrdin

Started this thread Reply With Quote
The following 2 users say Thank You to myrrdin for this post:
 
(login for full post details)
  #1577 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,860 since Nov 2014
Thanks: 3,029 given, 2,531 received

Ron99 suggested long time ago selling NG OTM strangles from spring until fall, and I started this strategy again.

Currently, I am short the NGN C3.25 / 2.5, and intend to buy back the strangle at 50 %.

Best regards, Myrrdin

Started this thread Reply With Quote
The following 2 users say Thank You to myrrdin for this post:
 
(login for full post details)
  #1578 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
 
Posts: 3,065 since Jul 2011
Thanks: 965 given, 5,719 received


myrrdin View Post
Ron99 suggested long time ago selling NG OTM strangles from spring until fall, and I started this strategy again.

Currently, I am short the NGN C3.25 / 2.5, and intend to buy back the strangle at 50 %.

Best regards, Myrrdin

I was just looking at that today. NGn 10 yr seasonal average is to peak May 1st. But that is not really strong. A couple of years are skewing the average.

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

Reply With Quote
The following 3 users say Thank You to ron99 for this post:
 
(login for full post details)
  #1579 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,860 since Nov 2014
Thanks: 3,029 given, 2,531 received


myrrdin View Post
Ron99 suggested long time ago selling NG OTM strangles from spring until fall, and I started this strategy again.

Currently, I am short the NGN C3.25 / 2.5, and intend to buy back the strangle at 50 %.

Best regards, Myrrdin

On Thursday, I rolled the NGN C3.25 / P2.5 to C3.4 / P2.6 to allow for higher temperatures in June. Weather is difficult to predict.

Additionally, I sold the NGQ P2.5 / C3.5 with 89 DTE.

I intend to follow this approach into fall. Exit point will be when a spread has doubled in value. Assuming 8 trades per year (April contract until November contract), and exiting successful trades at 50 %, this concept will be profitable even if two of the trades fail.

Best regards, Myrrdin

Started this thread Reply With Quote
The following 2 users say Thank You to myrrdin for this post:
 
(login for full post details)
  #1580 (permalink)
mosalem2003
Toronto
 
 
Posts: 91 since Apr 2019
Thanks: 88 given, 21 received


When is the difference between selling spreads and outright spreads. Can we take the same trade using NG outright spreads, if yes when to decide to use selling options strangles vs buying outright spreads ?

Sent using the futures.io mobile app

Reply With Quote


futures io Trading Community Traders Hideout Options > Diversified Option Selling Portfolio


Last Updated on July 27, 2021


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing

Your Charts Should Speak To You w/Bob Cometta

Elite only
 

Our 12-year anniversary w/ $$,$$$ prizes (check soon)

August
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
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.
no new posts