NexusFi: Find Your Edge


Home Menu

 





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 281,240 views
    2. thumb_up 2,296 thanks given
    3. group 139 followers
    1. forum 1,598 posts
    2. attach_file 93 attachments




 
Search this Thread

Diversified Option Selling Portfolio

  #1401 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192

Sorry should have put this in the first post, but didn't realize they sent these out in different announcements.

In addition CL, HO, RB outright margins also going up $450

https://www.cmegroup.com/notices/clearing/2018/11/Chadv18-453.html#pageNumber=1

Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Deepmoney LLM
Elite Quantitative GenAI/LLM
 
  #1402 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651

I currently hold the following short options positions:

CH P3.80
High supply and high demand. I assume that soon the market will concentrate more on demand, and that the huge supply is more or less priced. Seasonally the price in March should be higher than the price in September. I intend to take profit at 25 %.

LCZ P117 / C117
Sold this spread at a little bit above 3, thus, it will make money if the contract ends between 114 and 120. I intend to take profit at 50 %, and exit at a close above 120 / below 114. No CoF Report until expiry, high demand should be compensated by high supply.

LHZ C60, LHG P58, LHM P76
Short term big supply, longterm growing problems in China. But I do not see many hogs exported to China before the December contract expires.

KCH P102.5/C145, KCH P105/C160
The high volatility some weeks ago made these strangles expensive. Large crop 2018/19 should limit upside, smaller crop 2019/2020 should limit downside. I intend to take profit at 25 % or roll into the May contract at 50 %.

CLZ19 P28/C92
Volatility is extremely high, and, thus, a longterm strangle looks interesting. I intend to take profit at 50 %.

SIH P13.5-P12.5
Extreme COT data suggest a long position in Silver. Target: 25 %.

GCJ P1150-P1100
Extreme COT data suggest a long position in Gold. Target: 25 %.

At my "targets" I usually place intraday stops. In case of changing fundamentals or unexpected price behaviour I might exit earlier.

Best regards, Myrrdin

Started this thread Reply With Quote
  #1403 (permalink)
MGGer
Hannover Germany
 
Posts: 10 since Aug 2018
Thanks Given: 21
Thanks Received: 6


Hi myrrdin,

thx for your current portfolio uodate.

Are you in for a tarriff tension relieve rally in Soy-related short Puts? Meal, oil and beans seem to have bottomed, poltical insecurity lessened and oil (ZL) still with decent IV.

I´d choose OZL May 19 25.0, but that´s only 12 OI and 60 USD premium. Any better ideas ...?

Take care,

M.

Reply With Quote
  #1404 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


MGGer View Post
Hi myrrdin,

thx for your current portfolio uodate.

Are you in for a tarriff tension relieve rally in Soy-related short Puts? Meal, oil and beans seem to have bottomed, poltical insecurity lessened and oil (ZL) still with decent IV.

I´d choose OZL May 19 25.0, but that´s only 12 OI and 60 USD premium. Any better ideas ...?

Take care,

M.

No, I currently do not sell options on Soybeans or its products. There is a major risk of a significant price move upwards or downwards, depending on the development of trade relations between China and the US. The current option prices do not justify taking this risk.

If I would do anything related to soybeans, I would buy ATM options.

But I prefer to stay on the sidelines - there are better trades around.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:
  #1405 (permalink)
rajab
westhills california US
 
Posts: 94 since May 2015
Thanks Given: 130
Thanks Received: 20


myrrdin View Post
I currently hold the following short options positions:

CH P3.80
High supply and high demand. I assume that soon the market will concentrate more on demand, and that the huge supply is more or less priced. Seasonally the price in March should be higher than the price in September. I intend to take profit at 25 %.

LCZ P117 / C117
Sold this spread at a little bit above 3, thus, it will make money if the contract ends between 114 and 120. I intend to take profit at 50 %, and exit at a close above 120 / below 114. No CoF Report until expiry, high demand should be compensated by high supply.

LHZ C60, LHG P58, LHM P76
Short term big supply, longterm growing problems in China. But I do not see many hogs exported to China before the December contract expires.

KCH P102.5/C145, KCH P105/C160
The high volatility some weeks ago made these strangles expensive. Large crop 2018/19 should limit upside, smaller crop 2019/2020 should limit downside. I intend to take profit at 25 % or roll into the May contract at 50 %.

CLZ19 P28/C92
Volatility is extremely high, and, thus, a longterm strangle looks interesting. I intend to take profit at 50 %.

SIH P13.5-P12.5
Extreme COT data suggest a long position in Silver. Target: 25 %.

GCJ P1150-P1100
Extreme COT data suggest a long position in Gold. Target: 25 %.

At my "targets" I usually place intraday stops. In case of changing fundamentals or unexpected price behaviour I might exit earlier.

Best regards, Myrrdin

Hey myrrdin
Why would you go that far OTM in GC?
I have been trading GCJ and previous months at arround p1200-p1170.
Certainly mROI% is better.
Maybe you can tell me the advantages and disadvantages of close to money and far OTM PUT selling? given 120-130 DTE.
Thanks
Babak

Reply With Quote
  #1406 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


rajab View Post
Hey myrrdin
Why would you go that far OTM in GC?
I have been trading GCJ and previous months at arround p1200-p1170.
Certainly mROI% is better.
Maybe you can tell me the advantages and disadvantages of close to money and far OTM PUT selling? given 120-130 DTE.
Thanks
Babak

I had entered this trade many weeks ago, when the Gold price was around 1200.

I rolled this spread to the GCJ P1200-1150 last week, taking a profit of approx. 70 % for the former spread.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:
  #1407 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785

Here are the results of my seasonal trades (one contract per trade. $4,000 stop loss). It is only 4 months in 2016.




Over the years I have deleted some trades that quit working. But I left the losses in before deleting in the trades.

It is doing OK. In 2018 it had 54% winners.

For myself I am picking and choosing which ones to trade. Some are obvious, like not getting long ES in Dec 2018. Others I miss.

Sometimes I use these to pick which OTM short option spreads I enter.

Reply With Quote
  #1408 (permalink)
Forex37
Zurich
 
Posts: 49 since Feb 2011
Thanks Given: 65
Thanks Received: 17


ron99 View Post
Here are the results of my seasonal trades (one contract per trade. $4,000 stop loss). It is only 4 months in 2016.




Over the years I have deleted some trades that quit working. But I left the losses in before deleting in the trades.

It is doing OK. In 2018 it had 54% winners.

For myself I am picking and choosing which ones to trade. Some are obvious, like not getting long ES in Dec 2018. Others I miss.

Sometimes I use these to pick which OTM short option spreads I enter.

Ron, what is the account size required for this / ROI on reserved margin? And could you add a link to the explanation of this strategy?

Thanks

Reply With Quote
  #1409 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


Forex37 View Post
Ron, what is the account size required for this / ROI on reserved margin? And could you add a link to the explanation of this strategy?

Thanks

There is an own thread on seasonal trades in the commodities section. The most recent entry is on 13th of June 2018. I would appreciate this thread seeing more active participation.

Iin my opinion, an account for trading futures should be of the order of magnitude of $ 50,000.

Best regards, Myrrdin

Started this thread Reply With Quote
Thanked by:
  #1410 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785


I reposted my seasonal trade post in the Seasonal Trades thread.

Sorry myrrdin I didn't look hard enough to find it.

Reply With Quote
Thanked by:




Last Updated on May 26, 2022


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts