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Sorry I am late in responding. I have been busy. I don't think TOS allows naked puts in an IRA.
The ESZ4/EW4U4 1850 put (this morning 08/25/14) sells for $132.50 (one contract) with an expiration date
of 09/27/14, a delta of 0.064, and an IM = $2614 (one contract).
But for me this is too close to ES=1998. Too much risk. Also the ratio of (IM)/(premium sold) = 19.7
is too high.
Can you help answer these questions from other members on NexusFi?
Thank you, I checked IB, the IM=6782, MM=5426, I will transfer my money out for sure after reading about 60 pages of this thread so far:-)
Interesting quick way to measure the position, 132.5/2614=19.7 is too high, then what is the general number you use, do you mind to share? thanks!
Forgive me if this topic has been covered, maybe I should not ask so many questions before I finish this thread, just so much good information and so many great minds here:-)
PS: after reading a few more pages here, I feel like this number is around 16.
By reading so far on the 100+ page (I am still on 100+ pages now), I always see you have a quick ROI monthly on you positions, do you use some tools to calculate that for you? forgive me if this has been answered. Thanks.
PS: you answered in next post, it seems that you calculate it by yourself.
We will use this thread to discuss working with the CME PC-SPAN program.
Go to 'summary' - I think it's the 2nd post in the thread and scroll down until you see a link by forum member "DudeTooth" that says PC-SPAN.xls, last updated 12 Aug 2014.
That tool will calculate ROI (and margin and other things) on existing or potential positions with updates at the end of every market day. It's the greatest thing since sliced bread.
Another q, pls : if an option that was around 0.03 delta when you sold it uses up all your 3x margin excess, roughly what will its delta typically have become at that stage ? 'Trying to understand how many futures contracts would protect the position, although I realise this is dynamic.
I ignore delta for CL because it is not unusual to have CL make a $10 move. If I am closer than $20 then I will get in trouble if that happens. The deltas for CL just seem too low to me.
I don't know the answer to the 2nd question. You're right there are a lot variables to determine that answer.