Thanks for your nice thread. I`ve always wanted to trade non index futures, but I haven`t got the slightes idea about them and their fundamentals. What would be the best introduction (from Dummy 2 Master)?
But I still practice some diversification still: Living in Europe I`m a seller of options on Dax, Eurostoxx50, UK Ftse100 and (sometimes) CAC40. Those are European style, so strangles are very margin friendly. Unfortunately US brokers aren`t allowed and IB UK is the very same margin game as been played in the US. Luckily I got Macquarie which provide exchange requirements without mark up.
Kind regards
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I sell commodity options based on fundamentals (see my first entry in this thread for details). Thus, I consider it as essential to collect and understand information on fundamentals. I suggest to start with one group of commodities. If you do not have a special interest, grains and beans seem to me to be the easiest to trade. Meats are complicated, metals are closely correlated with currencies and indices (and, thus, would not be a diversification for you), softs have a lower open interest and are more difficult to trade. You receive basic data for grains from the USDA free of charge. But it is easier to subscribe to some service to get this information well prepared (and interpreted). Hightower is such service, which is distributed free of charge by many US brokers. There is also some information on the site of the exchange (CME). Another option would be to trade the energies (mainly crude oil and natural gas).
I am surprised US brokers are not allowed in your country. Here in Austria they are. I work with RJO and DeCarley, and I am happy with both of them. Most of the large US brokers use minimum margin as requested by the exchanges.
US brokers are allowed to offer their services to european customers. US brokers are also allowed to offer futures of european exchanges (like Dax of Eurex or FTSE of LIFFE) . US brokers are not allowed to offer options on european futures (like ODAX of Eurex..). So I can`t write options on DAX30 - and an american customers also can`t do this.
Bought back LHZ C70 at +/- 0. I do not understand yesterday's large move upwards - too large for simple short covering (for some time even locked limit up) or liquidation of some LC-LH speads. And in case I do not understand moves of a price, I prefer to quit.
The wheat position is a larger position ("double position") than the others to balance positions moving up vs. down with the US-Dollar. Currently the account is well balanced in this regard.
On my watchlist there is the SIH P14 at current level (in exchange to a profitable long outright position) and a CLF put on a move down. In the meats I am looking to sell calls on a move up.
Best regards, Myrrdin
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