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Hi to all!
Trading "selling options" with Vision broker using QST platform.
I have few ideas:
1) sell Calls NG 4.4Strike May aprox 250-270$
2) Strangle for CL 105/86 Strikes June aprox. 500$. Will close strangle before may
3) Sold Put for Euro strike 1.2100 312$ (June)
4) Today i am looking for /CT selling calls
Any thoughts?
Thnx, Reno
Can you help answer these questions from other members on NexusFi?
The crude strangle raises a flag with me. The delta on the 86 is .06 and on the 105 is .10. This is very close to the underlying. A quick move in either direction one side will lose money quick but the other side is going to gain value almost as fast. Keep a close eye on this...
I'm looking at the fundamentals, home sales increasing greatly, retail sales up, car sales up, new hiring, corporate profit up, etc., I think the fundamentals are too strong to see ES < 1500, short term.
You are correct. There isn't much if any money >50% OTM. There are a few things in his book and newsletters that doesn't make sense. And they also don't match how he traded when I had an account there.
I don't know why she picked 100 points and 12% more away. Maybe because SP rarely if ever moves that much in 56 DTE?
I looked at a recent worst case scenario. May 2010. ES was ~1200 5/3/10. It dropped to 1014 7/2/10. Using her formula, (1200-100)-12%=968. So her formula covered that big drop.
Now it wouldn't have covered the 2008 drop. But that is where you overrule your criteria based on current conditions.
For the 56 DTE, I'm guessing that for options with the delta she trades, about .0500, that is the sweet spot where time erosion on the premium hits harder.
If you are selling lower delta then the sweet spot for DTE would be higher.