Diversified Option Selling Portfolio - futures io
futures io



Diversified Option Selling Portfolio


Discussion in Options

Updated
      Top Posters
    1. looks_one myrrdin with 812 posts (1,274 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 226,933 views
    2. thumb_up 2,296 thanks given
    3. group 139 followers
    1. forum 1,598 posts
    2. attach_file 93 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 150,000 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)
  #1591 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,913 since Nov 2014
Thanks: 3,341 given, 2,626 received


MDRider View Post
Thanks for sharing your strategy Myrrdin - looks like it would provide consistent profits. Entering that far out will probably capture the exaggerated pricing that seems to exist as option contracts are initiated. Two questions:

1) How do you scan for a particular option's volatility? Is there an alert in ToS that will identify which market has IV over 70%, for instance? What's your IV threshold for selection?

2) I haven't found much on this thread regarding adjustments when the market goes nuts (actually, I don't know how to search for it within a thread and haven't had time to read all the posts since 2014!). Do you have exit/reentry criteria in that case? I optimized a nifty ToS standard deviation color indicator if people want to use it.

Stay healthy! MDRider

I use MRCI data for scanning the volatility (historical and implicit). They not only show actual values, but charts for volatility and seasonal charts for volatility. I do not use the same threshold for all commodities, but I sell when volatility is high compared to recent years.

I do not use ToS. I study the MRCI tables, often during the weekend. That should be enough.

Generally, I do not adjust trades. I do not think it is a good idea. It only makes you believe that, in the long run, the percentage of winners is higher than it really is.

I exit these trades when the value of the options has doubled, rarely tripled. I determine the exact point of exit in the chart of the underlying. That means: I look for strong resistance / support in the underlying at a place where I would assume the options to double in value.

Sometimes I enter a next trade for the same commodity. But it has to fulfil the same conditions as the first one, and I consider it as an entirely new trade. No revenge trade.

And, yes: I made significant profits working with this strategy.

Best regards, Myrrdin

Started this thread Reply With Quote
The following 3 users say Thank You to myrrdin for this post:

Can you help answer these questions
from other members on futures io?
Pinescript to EL conversion - ema cloud indicator
TradeStation
use of Ultimate Oscillator in NT8
NinjaTrader
TOS Fold Loop to NT8 For Loop
NinjaTrader
NT deleting my Strategies on charts
NinjaTrader
NT8 - Footprint Chart adding on code
NinjaTrader
 
 
(login for full post details)
  #1592 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,913 since Nov 2014
Thanks: 3,341 given, 2,626 received

Volatility of CL has risen significantly. It is rare that 30 USD wide strangles can be sold at 4.50 USD.

Significant chart damage has been done for the bulls.

Thus, I sold some CLH P52/C82 at this price, waiting for volatility to come down.

Best regards, Myrrdin

Started this thread Reply With Quote
The following 4 users say Thank You to myrrdin for this post:
 
(login for full post details)
  #1593 (permalink)
rajab
westhills california US
 
 
Posts: 93 since May 2015
Thanks: 128 given, 20 received


Just wanted to get some feedback and thoughts on how to play Grains and other commodities with all the changes that are going on in the world?
Am I late to the game?
Are ETN's the safest way to capture profits in Grains these days?
Lastly, I like to hear about some strategies people are using to play commodities and the trades they got on now.

THANK YOU
Babak

Reply With Quote
The following user says Thank You to rajab for this post:
 
(login for full post details)
  #1594 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,913 since Nov 2014
Thanks: 3,341 given, 2,626 received


rajab View Post
Just wanted to get some feedback and thoughts on how to play Grains and other commodities with all the changes that are going on in the world?
Am I late to the game?
Are ETN's the safest way to capture profits in Grains these days?
Lastly, I like to hear about some strategies people are using to play commodities and the trades they got on now.

THANK YOU
Babak

I generally do not trade ETNs because of the risk of losses during the rolling process of the ETN.

Currently, I do not trade grains at all because of the large price swings. I am not in a position to recognize the underlying short term fundamentals, which move the prices severely.

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)
  #1595 (permalink)
Sagal
Strasbourg, France
 
 
Posts: 127 since Mar 2019
Thanks: 42 given, 96 received

I don't know if it is so different, but the teucrium fund are more classified as ETF.
Anyway I assessed investing this we on whether TAGS WEAT or CORN but finally I gave up for the fact that maybe I'm a little bit late in the process and for reasons mentioned by myrrdin (I checked prices of 2nd 3rd contract and depending which one September to December contract). However it should be noted that options are also available for these ETF. Finally I decided if I want to go on this way more for futures or CFD (in the case I cannot afford a full contract).

"Teucrium Commodity Trust - Teucrium Wheat Fund is an exchange traded fund launched and managed by Teucrium Trading, LLC. The fund invests in the commodity markets. It uses derivatives such as futures contracts to invest in wheat. The fund employs a market neutral investment strategy. It seeks to track the daily weighted average of the closing settlement prices for three futures contracts namely 35% second-to-expire CBOT Wheat Futures Contract, 30% third-to-expire CBOT Wheat Futures Contract, and 35% CBOT Wheat Futures Contract expiring in December following the expiration month of the third-to-expire contract. Teucrium Commodity Trust -

Reply With Quote
The following user says Thank You to Sagal for this post:
 
(login for full post details)
  #1596 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,913 since Nov 2014
Thanks: 3,341 given, 2,626 received


Sagal View Post
Finally I decided if I want to go on this way more for futures or CFD (in the case I cannot afford a full contract).

There ale also mini-contracts for the wheat and corn futures, which have acceptable volume.

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)
  #1597 (permalink)
Sagal
Strasbourg, France
 
 
Posts: 127 since Mar 2019
Thanks: 42 given, 96 received


myrrdin View Post
There ale also mini-contracts for the wheat and corn futures, which have acceptable volume.

Best regards, Myrrdin

Thanks for the info, however I double checked and these mini-contracts are not available at my broker (at Saxobank mini-contracts are available for gold and silver, but not for wheat or corn)

Reply With Quote
 
(login for full post details)
  #1598 (permalink)
rajab
westhills california US
 
 
Posts: 93 since May 2015
Thanks: 128 given, 20 received

Do Live of Feeder Cattle go by seasonality and if so what are some fundamentals you look at before buying or selling options?

Thanks
Bob

Reply With Quote
 
(login for full post details)
  #1599 (permalink)
 myrrdin 
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
 
Posts: 1,913 since Nov 2014
Thanks: 3,341 given, 2,626 received


Sagal View Post
Thanks for the info, however I double checked and these mini-contracts are not available at my broker (at Saxobank mini-contracts are available for gold and silver, but not for wheat or corn)

Regarding Live Cattle, I look at Seasonals, COT Data, Supply & Demand (eg. Cattle on Feed Report), and the Stock Indices. I do not trade options on Feeder Cattle.

Best regards, Myrrdin

Started this thread Reply With Quote
The following 2 users say Thank You to myrrdin for this post:


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


Last Updated on May 26, 2022


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
     



Copyright © 2022 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