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These are the two /ES option trades positions I currently have on. Hopefully I will be closing these positions this week.
I wanted to make note that everyone should be cognizant of the total leveraged amount of their /ES option positions. Less is definitely more with futures and using SPAN margin is a big responsibility. A volatility spike could have disastrous consequences for someone that is over-leveraged no matter how far out of the money their puts are. Just be aware of this and I say this from an unbiased perspective not promoting commissions or a broker.
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
Can you help answer these questions from other members on NexusFi?
I have definitely taken my share of lumps too. But those losses made me realize how important it is to trade appropriate sized positions for my account especially for highly leveraged /ES options using SPAN margin.
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 feel good about these positions (currently). I think the market is oversold, like the Greek situation last month when I double down and had my best returns of the year.
I could be wrong though so I am prepared to roll down with plenty of excess margin
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
Are you trading only ES ? Or are you trading a variety of futures? I am still trying to decide if I need to be diverse or can I I get by trading only ES
This a small (actual money) Jade Lizard for the NQ futures options. (A close cousin to the ES.)
Notice the very small Gamma. The margin requirement and profit area are reasonably good.
This position could probably weather a 10% drop in NQ. Any comments good or bad?
Jade Lizard, I like the name. Definitely could weather a drop and could be profitable in the range bound market we have been and more profit to the bear side.
For me personally, these nondirectional type option trades sound good in theory but have never really been that profitable for me. The market usually doesn't cooperate and I end having to make adjustments to the trade. For me my bias long-term has been toward the long side and the interest rate change, greece, china hasn't really change my mind because market fundamentals are still strong 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