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  • #8,321
  • Apr 21, 2015 7:37pm Apr 21, 2015 7:37pm
I kinda like this strategy, although I'm not really into naked anything ... ():

Attached Image (click to enlarge)
Click to Enlarge Name: Laddered Puts.jpg Size: 190 KB


She subsequently closed these out on reaching about 30% max profit ... . I assume it's only something that you would do if a clear trend was evident. In this case, oil was on the up ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,322
  • Apr 21, 2015 7:47pm Apr 21, 2015 7:47pm
Quoting ZebraSquirl
Would think that selling calls with strikes in that December consolidation area would do the trick, too, no? Like Short June 60 Call ... . Mmm. Looks like the boat may have already left the dock there ... . June 60 Calls off .52 to .85 on volume of 26145 ... .
Lots of things affect oil and it can be a wild mofo. We will watch the storage data come out tomorrow and see what it does after that. I think I would rather be a put seller, generally, as we are moving into heavy seasonal demand increase in the N. Hemisphere, but that effect can be countered by other, mostly political developments, not all of which are exposed to the inquisitive eye. Anyway, I'll hope for a dip to sell puts into. I am not convinced I want to hang my dck out on some short call spreads.

You will see I mostly trade spreads, I would do as Case does and sell naked if I could (it's a margin thing). As I have noted b4, I am mostly trading IRA accounts and I can't sell calls naked in those, per SEC or CIA or AFL-CIO regs.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,323
  • Apr 21, 2015 8:09pm Apr 21, 2015 8:09pm
Quoting The Fool
{quote} Lots of things affect oil and it can be a wild mofo. We will watch the storage data come out tomorrow and see what it does after that. I think I would rather be a put seller, generally, as we are moving into heavy seasonal demand increase in the N. Hemisphere, but that effect can be countered by other, mostly political developments, not all of which are exposed to the inquisitive eye. Anyway, I'll hope for a dip to sell puts into. I am not convinced I want to hang my dck out on some short call spreads. You will see I mostly trade spreads,...
I guess I'm fortunate that I won't be trading out of an IRA; still employed and screwed by IRS regs since I've got an employer-based retirement plan, which prevents me from setting up a Roth and de-incentivizes Trad IRA contributions (stupidest damn crap; don't mind saving for retirement; do mind handing over a portion of my savings to fund "managers" who are basically being paid to move my money into broad-based index ETF's).

I probably won't have a full grasp of the margin issues until I actually start trading, at which time I'm sure they'll become all too apparent. Can't wait to crap my pants on one or two set-up's I screw the pooch on, but want to keep those diaper changes to a minimum ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,324
  • Apr 21, 2015 10:16pm Apr 21, 2015 10:16pm
Quoting ZebraSquirl
{quote} I guess I'm fortunate that I won't be trading out of an IRA; still employed and screwed by IRS regs since I've got an employer-based retirement plan, which prevents me from setting up a Roth and de-incentivizes Trad IRA contributions
Uh, I'm not an expert on these matters but I don't see how you can be prevented from setting up a Roth IRA. It's post-tax money so it can come from outside your employer plan contributions. Correct me if I am wrong.

I like the Roth's because your earnings are tax-free, a great benefit for a capable trader. I wish I had gotten into them much sooner, I'm only in my 2nd contribution year. I also have a SEP-IRA that I trade options and stock in and that is larger.

Of course, if you are an ace trader and have a big bankroll, the best is to just trade from a brokerage account, where you can at least enjoy Reg T margin, or, even better, portfolio margin if your equity is up $125k or better. Take the tax hit and stash some of the remainder in IRA's or other savings....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,325
  • Apr 21, 2015 10:18pm Apr 21, 2015 10:18pm
Quoting ZebraSquirl
I probably won't have a full grasp of the margin issues until I actually start trading,
see attached
Attached File(s)
File Type: pdf margins-handbook.pdf   159 KB | 1,729 downloads
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,326
  • Apr 21, 2015 10:51pm Apr 21, 2015 10:51pm
UVXY Sep $29/$30 calls, fotm but even at Jun expiry the b/e is <$15.....I've not had luck filling these.....
Attached Image (click to enlarge)
Click to Enlarge Name: 2015-04-21_uvxy.png Size: 58 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,327
  • Apr 22, 2015 1:55am Apr 22, 2015 1:55am
Quoting The Fool
{quote} Uh, I'm not an expert on these matters but I don't see how you can be prevented from setting up a Roth IRA. It's post-tax money so it can come from outside your employer plan contributions. Correct me if I am wrong. I like the Roth's because your earnings are tax-free, a great benefit for a capable trader. I wish I had gotten into them much sooner, I'm only in my 2nd contribution year. I also have a SEP-IRA that I trade options and stock in and that is larger. Of course, if you are an ace trader and have a big bankroll, the best is to just...
Here's the answer I found:

Attached Image


http://www.irs.gov/Retirement-Plans/...-Make-For-2015

I'm married, filing separately and my "modified AGI" appears to be > $10k, so no luck there ... . Now if my wife and I filed jointly, that would be the bee's knees ... .

So what I eventually decided to do was trade in a brokerage account and then increase my TSP plan contributions (fed employees' 401(k)) to offset any profits, as I'm quite a ways away from maxing those contributions out ... . I've got the regular annual max for elective deferrals ($18,000 for 2015) + "catch-up" contributions of $6,000= $24,000 per year for the max contribution. Most of my elective deferrals go into a tax deferred account, although we've finally been allowed a Roth type option, so I may want to shift contributions over to the Roth option (like, yesterday); unfortunately, the funds in the traditional account will remain "traditional" and will have to be rolled over to a trad IRA, which will naturally be a bummer come withdrawal time ... .

When I retire, I'll roll these funds into IRA's and go from there ... . Just seems there's more flexibility trading outside an IRA. In any event, any profits are likely to be fairly small from the get-go. The idea is to start small; make small mistakes; improve; and then prepare to deal with larger amounts of capital post-retirement (realistically, 3-7 years down the road) ... . Would have helped greatly to have started off even five years ago ... .

Unfortunately, there'll be a gap between retirement and IRA withdrawal without penalty eligibility at 59 1/2, but I'll figure that out when I get there ... . Won't be huge.

Thanks for the margin requirements handbook, too. Been years since I've been near an equity (think Clinton era/dot com bubble when day trading underlyings was the rage); just haven't had the time it seems until the past couple of years to devote to educating myself, which is a somewhat ridiculous excuse. Doesn't really take that much time as long as you stick to some of the more straightforward strategies and learn how to manage trades (as with anything, that's the particularly tricky part; watching "Anatomy of a Trade" videos now; these Tasty Trade guys seem to be able to turn shit into shinola if given enough time ... .)
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,328
  • Apr 22, 2015 5:05am Apr 22, 2015 5:05am
Quoting ZebraSquirl
I kinda like this strategy, although I'm not really into naked anything ... (): {image} She subsequently closed these out on reaching about 30% max profit ... . I assume it's only something that you would do if a clear trend was evident. In this case, oil was on the up ... .
Hi ZS. That's bacwardated laddered puts, institutions use that on instruments they don't mind getting long if assigned, usualy on ones they already have long positions. But we, retail traders can do that also. She sells lower strikes, but with more time value, so she gets the same premium for each of the options. She doesn't need a bull market for profit, consolidation will do good also, but bullish action on u/l will deplete puts value faster. If you are interested in selling premium, watch tastytrade videos about IV and IVR, that helped me a lot. Also, mind that Crude have contracts expiring evry month, and these current June contract and options expires in May. July contract expires in June, and so on, so that is one of the diferences between Crude futures options and equity options, USO included.
Hope is dangerous in this game.
  • #8,329
  • Apr 22, 2015 6:55am Apr 22, 2015 6:55am
Quoting StrayDog
{quote} Hi ZS. That's bacwardated laddered puts, institutions use that on instruments they don't mind getting long if assigned, usualy on ones they already have long positions. But we, retail traders can do that also. She sells lower strikes, but with more time value, so she gets the same premium for each of the options. She doesn't need a bull market for profit, consolidation will do good also, but bullish action on u/l will deplete puts value faster. If you are interested in selling premium, watch tastytrade videos about IV and IVR, that helped...
Thanks tons ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,330
  • Apr 22, 2015 8:08am Apr 22, 2015 8:08am
WHERE will FXI be at May expiry?
Attached Image (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,331
  • Apr 22, 2015 9:39am Apr 22, 2015 9:39am
bought the USO weekly $19 put for $0.09. Earlier did a FXI May/May4 $58 call calendar for $0.10 and a SDS May $21/$21.5 call vertical for $0.14
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,332
  • Apr 22, 2015 10:04am Apr 22, 2015 10:04am
CL - No dip on inventory...
BTFD-ers lifted SnP again... (my bear spreads WAS in profit...)
Made stupid loss on DAX after accidentally stopped myself on good trade...
What a shitty day so far.
Hope is dangerous in this game.
  • #8,333
  • Apr 22, 2015 10:42am Apr 22, 2015 10:42am
Quoting StrayDog
.. Like why not I just sell the $44 July put man... you know, rinse and repeat...
Well, no dip so far on /CL... I just sold a July 44 put for $0.32 ($320)... was hoping for better price, but pulled the trigger now, on $56.50 June contract.
Expiry is on June 17th, so 56 DTE... According from IB POP, this is further from the current price than 2nd SD.
Also, July contract trade almost $1.5 higher than current June contract.

Attached Image (click to enlarge)
Click to Enlarge Name: CL-July-44put.PNG Size: 35 KB
Hope is dangerous in this game.
  • #8,334
  • Apr 22, 2015 11:20am Apr 22, 2015 11:20am
Many thanks The Fool and ZebraSquirl!

Your posts mean a lot to me... I will study on what you gave me, and follow you guys in action.

Trade Safe!

csfxim
  • #8,335
  • Apr 22, 2015 11:40am Apr 22, 2015 11:40am
Quoting StrayDog
..... SPY Apr24 208.50/208 for $0.10 debit. SPY would have to close 1% lower on Friday for full profit. . F... it, bought a few.
Spreads was in profit today, now they are not... majority of down action was in premarket... So, WHY not do this also with /ES futures options?
I just checked /ES options, and Apr24 2085/2080 put spread, as an equivalent of the above SPY put spread. Buy it for $1.00 ($50), to get $5.00 ($250) max... since multiplier is 50...

Well... SPY have tighter bid/ask spreads, that's for sure, and more liquidity, but futures options have the same working hours like futures...
So your GTC close order can be triggered in pre-market also, for example.

(Mind the multipliers on futures ppl)
Hope is dangerous in this game.
  • #8,336
  • Apr 22, 2015 11:42am Apr 22, 2015 11:42am
Quoting StrayDog
{quote} Well, no dip so far on /CL... I just sold a July 44 put for $0.32 ($320)... was hoping for better price, but pulled the trigger now, on $56.50 June contract. Expiry is on June 17th, so 56 DTE... According from IB POP, this is further from the current price than 2nd SD. Also, July contract trade almost $1.5 higher than current June contract. {image}
keep an eye on the DOLLAR index 98.21 atm close anywhere here in the next 20 minutes might see crude rising which is 56.63 at the moment
  • #8,337
  • Apr 22, 2015 11:57am Apr 22, 2015 11:57am
Quoting Cecil Gee
{quote} If the DOW can close at yesterdays open at 17840, then i'm looking at a few hundred point drop, closes above the 50 day then I'll reconsider my shorts
closed when we got back up above the 50 day and entered a long vertical call spread 181.50 buy and write 182 for net 1c plus comms, a good risk worthy trade

DIA Apr 2015 181.500 call (DIA150424C00181500)
-OPR
0.07 https://s.yimg.com/lq/i/us/fi/03rd/down_r.gif 0.02(22.22%) 17:35

DIA Apr 2015 182.000 call (DIA150424C00182000)
-OPR
0.06 https://s.yimg.com/lq/i/us/fi/03rd/up_g.gif 0.02(50.00%) 17:35
  • #8,338
  • Apr 22, 2015 12:15pm Apr 22, 2015 12:15pm
Quoting Cecil Gee
{quote} keep an eye on the DOLLAR index 98.21 atm close anywhere here in the next 20 minutes might see crude rising which is 56.63 at the moment
DOLLAR index starting to retreat but so is crude
  • #8,339
  • Apr 22, 2015 12:39pm Apr 22, 2015 12:39pm
Quoting StrayDog
SPY have tighter bid/ask spreads, that's for sure, and more liquidity, but futures options have the same working hours like futures... So your GTC close order can be triggered in pre-market also
well, when you consider often the majority of the market moves are in pre-market hours, that alone is an argument for trading the futures and their options. I'm stuck with equity options in the IRA's, though...

...looking for a better dip than we got for WTI off the storage glut number, hoped it would have been a quick drop....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,340
  • Apr 22, 2015 1:09pm Apr 22, 2015 1:09pm
Quoting The Fool
...looking for a better dip than we got for WTI off the storage glut number, hoped it would have been a quick drop....
Yeah, if we get one, I will add to bullish positions, probably with USO or USO CFDs...
Hope is dangerous in this game.
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