April was a good month. I have been evolving how I trade options and now mostly I'm doing spreads on the most liquid index & commodity etf options, like SPY, SSO/SDS, TLT/TBT, GLD, GDX, QQQ, etc. Have a new IB account and will probably be trading futures options there but along the same lines. I like selling options and if I had large enough accounts I would do that naked mostly. But as it is I can do spreads to help with the margin requirements.
So, I will do wide diagonals and try to get to credit with multiple short legs against one long leg 2-3 months out. Or, I will look for good premium and try to get into reasonably safe credit spreads with a few weeks to just a few days dte, with a common strike date. I still do the latter on equity options after ER's, but that can work on the index etf's also at certain times. I have mostly given up on long strangles.
I like trading options on the Treasury instruments, as the Treasurys are very liquid and fairly well-behaved. The bonds are not going to shoot up or down 10% over a day or two like some commodities will or many equities do, so that gives you time to work and adjust positions. I'd have to say trading Treasury derivatives is the easiest way to make money trading that I have found.
It's going to be tedious to narrate that here, though, as I will have started new spreads every few days and there can be 20-30 trades open at a time. I'm not sure anyone is going to put in the effort to keep up with all that and not sure what, if anything, anyone may get out of me posting an occasional snapshot of those trades here. And it's too much work to throw it all down here. Just as well, since few are listening anyway.
I am feeling good about finding my way into an option trading groove where I just work and steadily make money and it's pretty boring. People who work and get their work done day in day out so they can get paid don't really need a forum to chat about what they do. Because it's a bore and they probably have other things they'd like to do and talk about, anyway. Trading should be boring, like hammering a nail is boring. Like fishing is boring.
So, I am going to hang back more from posting here. I will still be around & am willing to talk about any aspects of options trading if anyone is interested. Summer is right around the bend and I have lots to get done. Happy trades, ya'll.
So, I will do wide diagonals and try to get to credit with multiple short legs against one long leg 2-3 months out. Or, I will look for good premium and try to get into reasonably safe credit spreads with a few weeks to just a few days dte, with a common strike date. I still do the latter on equity options after ER's, but that can work on the index etf's also at certain times. I have mostly given up on long strangles.
I like trading options on the Treasury instruments, as the Treasurys are very liquid and fairly well-behaved. The bonds are not going to shoot up or down 10% over a day or two like some commodities will or many equities do, so that gives you time to work and adjust positions. I'd have to say trading Treasury derivatives is the easiest way to make money trading that I have found.
It's going to be tedious to narrate that here, though, as I will have started new spreads every few days and there can be 20-30 trades open at a time. I'm not sure anyone is going to put in the effort to keep up with all that and not sure what, if anything, anyone may get out of me posting an occasional snapshot of those trades here. And it's too much work to throw it all down here. Just as well, since few are listening anyway.
I am feeling good about finding my way into an option trading groove where I just work and steadily make money and it's pretty boring. People who work and get their work done day in day out so they can get paid don't really need a forum to chat about what they do. Because it's a bore and they probably have other things they'd like to do and talk about, anyway. Trading should be boring, like hammering a nail is boring. Like fishing is boring.
So, I am going to hang back more from posting here. I will still be around & am willing to talk about any aspects of options trading if anyone is interested. Summer is right around the bend and I have lots to get done. Happy trades, ya'll.
"If The Fool persists in his Folly he will become wise." - William Blake
Wishing you all the best for the new approach which I fully support. Don't be a stranger though as it is always good to read your witty comments....
Thanks for tuning in, njr. and thanks for your help. I will still be around & posting from time to time, feel free to do the same. Happy Trades & have a great Summer.
