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Hi Ron,
I am newbie who just started after reading your superb thread here. When you open position of short puts at 91-100 DTE, do you advise adding to it at say 80 then 70 then 60 DTE irrespective of ES going up or down?
I shall be grateful if you could advise.
Dilip
Can you help answer these questions from other members on NexusFi?
The actual market is perfect for this strategy. VIX is a little bit high and we see the smart money is buying in supports, so you just need to sell in this supports and wait. Last 7/8/15 I sold some 1510 oct puts at 4 and if next monday we see a gap above 2080 (resistance level) I will be able to close this position in less than 10 days. On the other hand I have to say I have some EOM Sep 1650 sold last 6/25 at 3.1 that are not working that well.
I prefer to use just 25% of my margin instead of 33%. I feel more comfortable.
Let me officially say, don't become an Elite Member just for tick data. If you like the community and want to support us, become a member. It stands on its own.
This is the main selling options on futures thread:
But I believe they have useful …
). Is there a place I can download tick data for SPY along with options data? Thank you.
If you download and run the IM using SPAN spreadsheet or PC-SPAN after 7 pm ET you will get the IM for the next day. OX does not update their IM until the middle of the night.
$759 is the IM that was released at 7 pm Thu 7/9 for Friday's trading.
$576 is the IM that was released at 7 pm Fri 7/10 for Monday's trading.
First I wanted to see if a spread gave the same protection during a major drop as a naked put. I used 9/19/14 to 10/15/14. A drop of 157 for ES.
For the spread I used a delta close to 0.0400 for the short leg and a delta close to 0.0100 for the long …
The option that was 63 DTE hit the exit point and lost money. The options further DTE were able to ride out that dip.
NOTE that post was wrong in stating the positive ROI for the 63 DTE option because it hit the exit point and lost money. It actually lost 20.3% of starting account value.
Thanks, Ron. The table shows opening different strikes at 63/90/120DTEs. This is not what I meant. What I meant is adding to the same strike opened at 90 DTE but after 10/20 days ie at 80/70 DTE if position is still open but keeping same target of exiting at 50% of original premium at 90DTE. If after 10/20 days, ES is down you may require more cash for new additional options and if ES up then less cash and new premium may have increased or decreased accordingly.
The table shows that putting on new positions that have less then 90 DTE is more risky because they are more likely to go on margin call if ES moves aggressively against you.
Because of this I don't add new positions at the same strike or the same month if the DTE is less than 90.