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It does not make sense to place stop orders for options. Stop orders become market orders at the time when the stop price is hit. As OTM options are rarely traded the fill cannot be predicted. Significant losses can be the consequence.
You have to watch the trade and close it using a limit order, place when the price of the option has reached the target.
I don't think you can place one order for a 2x3 put spread on Zaner. If you could you would place a GTC limit order to buy at 2.30. It will fill at 2.30. Never higher.
I am almost coming to the conclusion that selling spread options on a diversified way on commodities is hardly profitable for me.
Is there anyone trading the collateral to protect the naked options on commodities in the case of a reverse move not expected and supposedly of short duration or have you reached already the conclusions that it is as well hardly profitable? I know that your recommendation is more to take profit at 50%...One does not prevent the other...
Not helpful guys...I will more rarely come and intervene as there are not enough exchanges on the topics I am interested in (I am talking as well of exchange of ideas or information on commodities on the other topics of this forum; not that I found better forums but let's go back to solitary...).
I will answer my own question and leave you there:
On paper it could sound nice but in practice and particularly for the commodities that are expensive (silver 5000$ /point) it is too difficult to manipulate. One example: I lost on 3 and 4 January the premiums of one naked put and one spread put option in less than 12 hours on Copper trying to protect my naked position. Ok if cooper prices would have plunged for a long period I was protected my assets but...it is rarely a winning strategy.
PS I will change my strategy as the previous one is not successful in the current environment.
I am not sure if you speak German. Jens Rabe has written books on option selling and also operates an interesting Youtube channel. Both are well suited for beginners and less for experienced traders.
Lawrence McMillan has written interesting books on optoin theory.
IŽd nevertheless recommend their book as an excellent source for basic trading in commodities futures options: James Cordier & Michael Gross: the complete guide to option selling.
As a human James Cordier was tired and bored of putting on the same trade year after year, once he though he could get way with less expensive trade then thing just blew up in a hurry. The raise of robot will take care of that, it will not not get tire or bore of doing the same trade year after year.
