1 month NAT GAS option setup - Trading Journals | futures.io
futures io futures trading


1 month NAT GAS option setup
Started: by leszczu Views / Replies:343 / 13
Last Reply: Attachments:8

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.


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, and we will never resell your private information.

-- Big Mike

Reply
 8  
 
Thread Tools Search this Thread
 

1 month NAT GAS option setup

  #1 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received

1 month NAT GAS option setup

Hi,
quite a long time ago I started FGBL option journal. But for months Ive been strugling with it. That push me to constantly look for another trading methods. From few months I trade NAT GAS with monthly options.
It is very simple indeed and looks like this :
1. Im looking at monthly and weekly chart and Im trying determine next month range. Im estimating support and resistance zones.
2. Im taking position immidiately after expiery of previous setup (possibly ittle earlier if margin allows.
setups are little modified collar:
-1 Call
+1 outright
+1 put
plus credit spread from upside

3. as market is moving Im adding additional setups (the same ) to cover the bigger range
4. So basically instead of trying be a sniper Im using shotgun here to target big profit zones (200-300ticks)

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received


Current month position.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).



As you see, I have currently 6 outright. On the right of the picure you can see estimated profit at the day of expiry.

Reply With Quote
 
  #4 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,711 since Dec 2013
Thanks: 1,488 given, 2,570 received
Forum Reputation: Legendary


leszczu View Post
2. Im taking position immidiately after expiery of previous setup (possibly ittle earlier if margin allows.
setups are little modified collar:
-1 Call
+1 outright
+1 put
plus credit spread from upside

I'm not sure what you mean by "plus credit spread from upside" but a traditional collar is +1 Put, -1 Call and is inherently bearish.
Adding an outright to this turns it into a call spread (since +Put+Outright=+Call) which is inherently bullish.

leszczu View Post
Current month position.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

As you see, I have currently 6 outright. On the right of the picure you can see estimated profit at the day of expiry.

Thats +5 Puts, -6 Calls, +6 Outrights, so it looks like your missing a put.
Here's you PnL chart, plus what it would look like if you add a put, and how that compares to some call spreads.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
 
  #5 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,711 since Dec 2013
Thanks: 1,488 given, 2,570 received
Forum Reputation: Legendary

Futures Edge on FIO

Which time slot for our live webinar events works best for you?

 
Sorry.. chart is plus 265 put not 260 put

Reply With Quote
 
  #6 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received

I give you an example from this month.
outright 2676
2.65P 90
2.7 C 92
2.75 C 71
2.8C 53

1. You buying collar 2.7C-2.65P for a ~25tick upside, then you selling 2.75C and buying 2.8C for a 18 tick credit.
2. Worst case <2.65 you losing 8tick, max upside 2.7-2.75 24+18 tick
3 This way you creating profit zone with big profit and minimal downside.
4. Idea is to stack this setup across maximum range ie this month profit zone is 3000-3350.
5. You can use 2x2.75C for a bigger profit, thats what I usually do.


Last edited by leszczu; October 19th, 2016 at 04:47 PM.
Reply With Quote
 
  #7 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received

Im also writing naked puts/calls, but only at the begining of the month. I have methods to cover it if nesesary.

Reply With Quote
 
  #8 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


I made additional covering of 2.9-3.1 zone, and increased profit at 3350.

Reply With Quote
 
  #9 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received

Ive finished october setup with max loss (outright <2.9). It could have been easly avoided, but unfornately i didnt foreseen move of this magnitude 3.3->2.7 in just one week.

November brings few improvements in my trading. Most important is a change from futures/options to pure option trading. The reason is severe drawdowns after/before us session.
Another change is the way im calculating position, now Im using layers in excel. Every position is unique and has unique PL. Now even complicated portfolio is easy to understand and can be easly modified.

Basic trading idea remains the same, Im stacking setups with limited loss, but instead of collars Im using put spreads and bear spreads. Theres also a place for few naked shorts, but only from side with bigger potential profit.

Reply With Quote
 
  #10 (permalink)
Trading Apprentice
poznan / poland
 
Futures Experience: Advanced
Platform: Stellar, IB workstation
Favorite Futures: FGBL options
 
Posts: 41 since Jun 2015
Thanks: 0 given, 0 received


Current setup. Obviously Im looking for a rebound to 3+ area. Then Im going to hedge downside. If market didnt move there Im going to close written calls 3+ and open them again lower to reduce loss.

Attached Thumbnails
1 month NAT GAS option setup-setup-excel.jpg  
Reply With Quote

Reply



futures io > > > 1 month NAT GAS option setup

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

NinjaTrader 8: Tips and Tricks (part 2)

Mar 2
 

An Afternoon With FIO member @michaelleemoore

Elite only
 

Jigsaw Trading: Keys to successfully trading the open

Mar 9

Macro view: Trump Market Risk w/Piers Curran @ Amplify Trading

Elite only

Reading the Psychology of the Market w/Brett Steenbarger & Trading Technologies

Elite only

Hybrid Machine Learning (R and TradeStation) w/Murray Ruggiero

Elite only

Spring Grains Outlook w/Sean Lusk @ Walsh Trading

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Nat Gas Bullish , not Bearish! josephBus1 Commodities Futures Trading 86 12 Hours Ago 03:11 PM
setup cshrum Traders Hideout 3 November 9th, 2012 07:09 AM
Harmonic Setup wh Currency Futures 14 August 22nd, 2011 11:04 PM
first day of the week/month - requesting last day of the week/month SARdynamite NinjaTrader Programming 3 July 15th, 2010 07:25 AM
Setup I have been playing around with suchen Traders Hideout 9 July 3rd, 2009 12:05 AM


All times are GMT -4. The time now is 03:51 AM.

no new posts
Page generated 2017-02-26 in 0.14 seconds with 20 queries on phoenix via your IP 54.205.36.165