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Some findings on the recent NG calls. I had rolled to a higher strike and added more positions to cover the losses of the lower strike.
Mar NG futures were 4.473 on 12/19. On 12/23 they were 4.500. Up .027.
The Mar 5.00 call on 12/19 was .194. The 6.00 was .085.
On 12/23 the 5.00 was .218. Up .024. The 6.00 was .112. Up .027. More than the 5s. That's crazy that the 6s went up more than the 5s and the same as futures.
The 7s went from .040 to .062. Up .022. Way too much compared to futures for an option this far OTM.
This is why rolling didn't work this time. The 7s only lost $20 per contract less than 5s. So rolling to more positions at 7 than 5s actually lost me more money not less.
I think that happened because volatility went thru' the roof. Even though the volatility of the far OTM options is higher than the nearer ones, this time it was way too higher. I looked at that and decided to fold instead of rolling (had one too many contracts, anyway), took it in the shorts but still ended up for 2013.
2013 was my first year with futures options (been doing equity/index options for a few years) and was nicely placed till that week of December .... but still ended the year in positive territory.
Thank you to the forum and especially to Ron, Kevin and the newer posters too! Learning new tricks everyday.
Where can I find this information? I notice you're always on top of these decrease / increases. I did a quick look around at broker and exchanges and I'm not looking in the right place. A point in the right direction would be appreciated.
Note: I've probably missed this in one of the nearly 300 pages of this thread. Searching margin, margin increase comes up with endless results.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
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Nice rally on Tuesday but not looking so great today so far.
I dabbled with some 1830/50 weekly fences (Jan 3rd), sold half with a decent profit going into close Tuesday.
May add some 1820/40s again here