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I am starting a thread to give updates on my /ES option trades. I respect Ron ideas and strategy, like I have stated many times on his thread. He has elected to put me on ignore. I wish Ron nothing but the best
On this thread I will post my /ES option trades and will up date it periodically. All are welcome to post/ critique. I welcome different views and analysis. And I will not put someone on ignore if they have a different opinion. I believe that different view points can only make someone a better trader. I am not promoting a broker or commissions.
I use substantial less margin than IM*3. My trades will be substantially less quantity and amount leveraged. I usually don't sell longer dated options >90 days because of the substantial amount of Vega risk.
I will sell puts from Delta -.10 to -.20 and 80 days to 50 days expiration. I will also look to sell during higher volatility periods or spikes, which usually coincide with a down day or correction. I will update my trades later this week. All are welcome to post, submit analysis or critique. No one will be ignore unless someone resorts to personal attacks.
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp
That's good to hear, what delta and strikes do you normally sell?
I have not sold calls on /ES. I have sold calls on SPY and SPX with some success but I found that the premium is not there on SPY and SPX on the call side to justify opening a position. Just looking at /ES right, I am not able to find a strike that I would feel comfortable selling and get a decent premium:
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp
I am trading around the 10 delta but I have been skewing things. I have been doing ratios (3:2) as well as trying credit spreads with a similar ratio for the distance of the strikes. So something like a $60 spread for putts and $40 for calls
Mostly because I am still relatively new to Options so doing both puts and calls
I had a SPX 2190/2210 and 1910/1890 which I closed for $1.30 after 8 days with a big part being the call side, but may have been lucky
Message deleted. But I was not allowed an opportunity by Ron to respond to his allegations that was "making up stuff" and outright lying. He put me ignore after he made that statement about losing all credibility. So I believe I have right to at least respond. I try to clear the air with by sending him a PM and not responding anymore to his allegations. But the way he handle it by making those allegations and then putting me on ignore and not allowing me to respond was just uncalled for IMO.
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp
As well as keeping my Risk of Ruin/Drawdown to an acceptable level. i took a big loss early in my trading career and have been scared by it ever since. So I am risk averse.
Nice trade. In this range bound market that we have been for basically for the better part of 2015, call and put spreads can work for someone that is more actively engaged in the market.
I traded some iron condors on SPX four years ago and with some success but when the market move strong on the call side it basically wiped out of the put side gains and then some. For someone that is actively following the market during the day and can make adjustments, there is definitely potential in those type trades that "strangle the market"
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp
Really nice trade especially in this range bound market will have been in.
I will say that I have tried many different option strategies over the years including ratio spreads. I learn a pccrc (put call calendar ratio combination) method at a traders expo one year, a delta neutral strategy that profited from the increase volatility of equities before earnings. It worked great during periods of higher volatility with volatile stocks but required adjustments. At least for me, what I found was the put options that I was selling on iwm,spx, spy were consistently making a higher return with considerably less commissions and requiring less adjustments. So that's where I have been at for the last few years, it is boring and simple but that works better for me.
But I definitely think someone that is monitoring the market more than me can juice their returns on both the call and put side
Volatility is good for the market and trading.
Preservation of capital is the most important concept for those who want to stay in the trading game for the long haul. - Van Tharp