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Updated May 26, 2022
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July 3rd, 2017, 11:32 AM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
TraderGriz
Guess you are correct 2.95p-3.45c was placed on 4-17. I was not correct when I said March. It was April when I entered. I know it was a pretty tight window but didn't expect it to go as low as it did.
And a bit short on time. That prolly why tight window.
Can you help answer these questions from other members on NexusFi?
Best Threads (Most Thanked) in the last 7 days on NexusFi
July 3rd, 2017, 11:39 AM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
TraderGriz
Guess you are correct 2.95p-3.45c was placed on 4-17. I was not correct when I said March. It was April when I entered. I know it was a pretty tight window but didn't expect it to go as low as it did.
Whoa. You sold a 2.95-3.45 strangle 38 DTE when futures were 3.251? That is WAY too close.
That put was -18.49 delta . Only 9.3% OTM . Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.
Even if you are selling lower DTE, you need to be further OTM. You need to follow your own rule of 15-20% OTM. For 20% that would have been 2.60-3.90.
June (71 DTE) 2.60 was $50 and June 3.90 was $110.
July 2.60 was $110 and July 3.90 was $410. Much higher premium than June at same strikes.
On April 27 I sold Aug 2.60-4.50 strangle for $430.
July 3rd, 2017, 12:03 PM
Germany
Experience: Intermediate
Platform: TWS
Trading: Options on futures
Posts: 155 since Jul 2014
Thanks Given: 341
Thanks Received: 142
TraderGriz
And a bit short on time. That prolly why tight window.
A small thing: often these uneven strikes sometimes have a much lower liquidity than the even one.
3.0 - 3.5 may have had a better liquidity.
July 3rd, 2017, 01:37 PM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
manuel999
A small thing: often these uneven strikes sometimes have a much lower liquidity than the even one.
3.0 - 3.5 may have had a better liquidity.
I have many more In energies all leftover
July 3rd, 2017, 06:24 PM
Henderson, NV, USA
Posts: 63 since Feb 2015
Thanks Given: 91
Thanks Received: 33
Is there a strategy to timing a trade for selling options based on when the quarterly crop reports come out? For example do you all avoid selling options in the weeks leading up to the report? I ask because I made the mistake of selling ZM calls the week before the report came out on Jun 30th.
July 4th, 2017, 05:51 AM
Linz Austria
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,688
Thanks Received: 2,651
Calamari88
Is there a strategy to timing a trade for selling options based on when the quarterly crop reports come out? For example do you all avoid selling options in the weeks leading up to the report? I ask because I made the mistake of selling ZM calls the week before the report came out on Jun 30th.
In case you are a beginner I would strongly recommend not to hold short options during monthly and quarterly USDA reports. This is valid for grains, beans and meats.
There are reports that are known for often causing large moves. And others that usually are not that important. But even most experienced traders I know are very careful regarding these reports and stay out of the markets or keep lot sizes small.
Best regards, Myrrdin
July 4th, 2017, 09:20 AM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
Myrrdin I have question I was long on wheat placed sometime back, I was up until recently. I bailed with a loss. Not too bad as I had time erosoin in my favor.. Do you think this all an emotional? Granted they are having dry spells in the west by trade I am a road foreman I am battling with torencel rains? It is causing both meat an grain to rise artificially? Particular wheat?
Any advice from more expierienced that I would be welcome
July 4th, 2017, 11:17 AM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
ron99
Whoa. You sold a 2.95-3.45
strangle 38
DTE when futures were 3.251? That is WAY too close.
That put was -18.49
delta . Only 9.3%
OTM . Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.
Even if you are selling lower DTE, you need to be further OTM. You need to follow your own rule of 15-20% OTM. For 20% that would have been 2.60-3.90.
June (71 DTE) 2.60 was $50 and June 3.90 was $110.
July 2.60 was $110 and July 3.90 was $410. Much higher
premium than June at same strikes.
On April 27 I sold Aug 2.60-4.50 strangle for $430.
I'm learning how to sell. It was more risky than thought but ended for the good.
July 4th, 2017, 12:33 PM
Minnesota
Posts: 89 since Feb 2017
Thanks Given: 178
Thanks Received: 38
ron99
Whoa. You sold a 2.95-3.45
strangle 38
DTE when futures were 3.251? That is WAY too close.
That put was -18.49
delta . Only 9.3%
OTM . Call was 31.78 delta. Only 6.1% OTM. Extremely risky trade.
Even if you are selling lower DTE, you need to be further OTM. You need to follow your own rule of 15-20% OTM. For 20% that would have been 2.60-3.90.
June (71 DTE) 2.60 was $50 and June 3.90 was $110.
July 2.60 was $110 and July 3.90 was $410. Much higher
premium than June at same strikes.
On April 27 I sold Aug 2.60-4.50 strangle for $430.
I'm learning how to sell. It was more risky than thought but ended for the good.
July 4th, 2017, 01:26 PM
Linz Austria
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,688
Thanks Received: 2,651
TraderGriz
Myrrdin I have question I was long on wheat placed sometime back, I was up until recently. I
bailed with a loss. Not too bad as I had time erosoin in my favor.. Do you think this all an emotional? Granted they are having dry spells in the west by trade I am a road foreman I am battling with torencel rains? It is causing both meat an grain to rise artificially? Particular wheat?
Any advice from more expierienced that I would be welcome
Sorry - I do not understand your question. Perhaps because I am not a native speaker and misunderstand some words.
You write that you were long wheat, and bailed with a loss. Wheat is moving up since middle of May. When did you enter and exit your trade ?
What do you think is emotional? Your trading ? The trading of the crowd resulting in the wheat price ?
Please formulate your question in a way that enables me with my average knowledge of English to fully understand it.
Best regards, Myrrdin
Last Updated on May 26, 2022