rsm005 

Well, here's the results of my first trade aaannndddd it didn't go well. Total premium collected $960 on CL. Trade was 27% out of the money and t turned on me inside of 30mins on Friday and the first 45mins on Monday morning. Oil shot up a whopping 13% and my mental stop was hit. I executed my trade but the bid/ask was not in my favor and viola...I got creamed. With the ratio spread I contained the damage but in the end I ended up down almost $3k. The experience left me a little and It really sucks that this is how I have to start the experience but I did learn a lot and I'm taking that information with me to the next trade. 1. The position was too large relative to my account size. My gut told me but I ignored it, not again. 2. I need to sell further out of the money. A .04 delta was just not enough. After reading this thread a few times the number should be closer to .02 or .01. copied and pasted datahogg's post on the same thread to get an idea of just how far out. You still probably haven't noticed the rally . Congratulations man...I need to be more in tune with you and ron99's methods. 3. I need to diversify soon. My original goal was to trade one commodity at a time until I understood the fundamentals well and then add others. Although that sounded good it lends itself to big issues when a single trade goes against me. This is especially true as I'm making much smaller trades. 4. Only aim to make 3%-5% per trade. On this particular trade I tried to go with 10% and that just ended up burning me. See point 1. 5. Get a broker that won't nail me on margins. One of the main reasons I couldn't sell a strangle on my original position, which would have mitigated my losses even more, was because OX was adding so much additional margin to do it. This didn't leave me with the residual 3x cash. I've since opened an account with DeCarley and will see how that goes. I could have simply gone with a smaller trade but didn't...and that again goes back to point 1. 6. Losing hurts..not getting back in the game hurts more. I can see how easy it is to just quit and go back to my career and life but then I would learn anything and I know I can learn and be successful at this. I'm hoping to get some feedback from the more seasoned people here when I structure my next trade. Thanks all. /A/

"I sold 12 March15 calls at $58 for a $900 premium."

If I read correctly you sold 12 March 58 calls which will expire 03/18/15 .
What was the premium sold for each call? Because 58 x 12 = $696 not $900 .
Just wanted to look back at your trade. Thanks.

datahogg 

"I sold 12 March15 calls at $58 for a $900 premium." If I read correctly you sold 12 March 58 calls which will expire 03/18/15 . What was the premium sold for each call? Because 58 x 12 = $696 not $900 . Just wanted to look back at your trade. Thanks.

His strike is 58. Divide $900 by 12 to get his dollars per option.

Mar calls do not expire 3/18/15.

ICE is doing the following webinar,

Thursday, February 5, 2015 4:15 pm
Eastern Standard Time (New York)

Using Options to Trade the ICE Sugar and Coffee Markets.

Please join ICE and Zaner Group as they present Paul Forchione, veteran options strategist and author of Trading Options Visually: What You Must Know to Trade Options on Futures, discussing ways to analyze and select appropriate trading strategies using ICE Sugar (SB) and Coffee (KC) options.

Among the topics covered in this webinar are:
•How to match strategic directional and implied volatility strategies for current market conditions
•Ways to employ practical techniques to obtain a trading advantage when entering markets
•Methods to construct well-crafted trading plans

https://icewebinar.webex.com/mw0401lsp11/mywebex/default.do?nomenu=true&siteurl=icewebinar&service=6&rnd=0.39113140595993434&main_url=https%3A%2F%2Ficewebinar.webex.com%2Fec0701lsp11%2Feventcenter%2Fevent%2FeventAction.do%3FtheAction%3Ddetail%26confViewID%3D1751251070%26%26EMK%3D4832534b00000002ab52432655e1cd6232554ac4ec6d8a45018de1be4158d5d9835015f50c0b208f%26%26%26siteurl%3Dicewebinar

I have no idea if this will be worthwhile or not. Just thought I would let you know about it.

The futures.io (formerly BMT) webinar at the same time on neural networks will be more fun

Sent from my phone

ron99 

His strike is 58. Divide $900 by 12 to get his dollars per option. Mar calls do not expire 3/18/15.

At any rate the margin for these calls now is astronomical.

ron99 

His strike is 58. Divide $900 by 12 to get his dollars per option. Mar calls do not expire 3/18/15.

OK when do they expire??

datahogg 

OK when do they expire??

2/17/15

Hi all,

This is my first post since the total destruction of my trading account courtesy of naked Gold puts explosion of a couple of years back :-(
I have been reading this threat from the start, and am currently at post 86. Good stuff-can't believe it's still going!

I'm thinking about getting back into option selling (with a few changes from the last time :-) and was thinking about just concentrating on the grains (specifically corn) to start with. My long-term goal is to learn one market at a time and become good at that, then slowly adding more markets until I can talk about them like Ron99 and the rest of you players do.

I want to start reading fundamental reports and get knowledgable about what is causing the longer-term trends. I know The Hightower Report has been mentioned here, although I know it talks about more than just grains. Is it worth the money? How about the USDA reports like WASDE? Good or a waste of time (40 pages!)? Any other reports y'all can think of that might help me become knowledagble in the corn/grains?

Currently reading Cordier's book, listening to a book on the grains business while driving, and reading your posts. I know this can be done for the long-term, since you all can't be just lucky over so many years :-) so I am in this for the long haul (retirement), and ready to study...

Thoughts?

psears 

Hi all, This is my first post since the total destruction of my trading account courtesy of naked Gold puts explosion of a couple of years back :-( I have been reading this threat from the start, and am currently at post 86. Good stuff-can't believe it's still going! I'm thinking about getting back into option selling (with a few changes from the last time :-) and was thinking about just concentrating on the grains (specifically corn) to start with. My long-term goal is to learn one market at a time and become good at that, then slowly adding more markets until I can talk about them like Ron99 and the rest of you players do. I want to start reading fundamental reports and get knowledgable about what is causing the longer-term trends. I know The Hightower Report has been mentioned here, although I know it talks about more than just grains. Is it worth the money? How about the USDA reports like WASDE? Good or a waste of time (40 pages!)? Any other reports y'all can think of that might help me become knowledagble in the corn/grains? Currently reading Cordier's book, listening to a book on the grains business while driving, and reading your posts. I know this can be done for the long-term, since you all can't be just lucky over so many years :-) so I am in this for the long haul (retirement), and ready to study... Thoughts?

You can get Hightower, Wyckoff, Gramza and Dow Jones opinion/news for free from OX. Just open an account and I don't think you even have to put any money in it. My current OX account has 11 cents in it.

USDA data is good. USDA forecasts are poor.

If you are doing grains the main thing you will need to watch is weather across the globe. That makes trading grains volatile because weather is unpredictable.

One seasonal in grains I play is price dropping in Sep and rising in Oct.

PS I got nailed on that Sep 2011 Gold drop too. It was so unpredictable.

psears 

Hi all, This is my first post since the total destruction of my trading account courtesy of naked Gold puts explosion of a couple of years back :-( I have been reading this threat from the start, and am currently at post 86. Good stuff-can't believe it's still going! I'm thinking about getting back into option selling (with a few changes from the last time :-) and was thinking about just concentrating on the grains (specifically corn) to start with. My long-term goal is to learn one market at a time and become good at that, then slowly adding more markets until I can talk about them like Ron99 and the rest of you players do. I want to start reading fundamental reports and get knowledgable about what is causing the longer-term trends. I know The Hightower Report has been mentioned here, although I know it talks about more than just grains. Is it worth the money? How about the USDA reports like WASDE? Good or a waste of time (40 pages!)? Any other reports y'all can think of that might help me become knowledagble in the corn/grains? Currently reading Cordier's book, listening to a book on the grains business while driving, and reading your posts. I know this can be done for the long-term, since you all can't be just lucky over so many years :-) so I am in this for the long haul (retirement), and ready to study... Thoughts?

Major part of my option selling program currently is grains & beans. But in my opinion it is important to trade a large variety of commodities to avoid clump risk.

Hightower is free of charge also with deCarley Trading and RJO. It is certainly worth reading.

I also like the weekly report of Arlan Suderman (Water Street Solutions): "MarketSense Weekly". It covers Supply & Demand, weather short-term and long-term etc. You will find it via google.

My favourite regarding grains & beans is the internal reporting of RJO for their customers.

The most important thing about the USDA reports is the reaction of the markets to these reports. I only read the abstract of Hightower.

I wish you a successful re-start of your option selling activities.

Best regards from Austria, Myrrdin