GoSeigen wrote:Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
I don't have the time to follow the options markets. What sort of price do these things write at?
Thanks to gpadsa,Steffers0,lansdown,Wasron,jfgw, for Donating to support the site
GoSeigen wrote:Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
johnhemming wrote:GoSeigen wrote:Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
I don't have the time to follow the options markets. What sort of price do these things write at?
GoSeigen wrote:GoSeigen wrote:GoSeigen wrote:
This position is still practically at break-even and VIX still elevated with inverted term structure. Earlier this week I increased exposure with some Dec S&P straddles. The plan is to write shorter-dated and/or OTM options against the position when the term structure normalises, or close my S&P short futures if and when there's another severe market drop.
GS
Sep and Dec straddles are comfortably in profit, the S&P term structure is now roughly flat so I have cautiously started writing Jun straddles against the long Sep and Dec positions.
GS
Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
GS
TheMotorcycleBoy wrote:Purely out of curiousity, GS. But when "you" write options, who do you trade them with? I can't it figure out.....it's like....surely because you synthesised them yourself, how can the buyer price them?
GoSeigen wrote:
Sep and Dec straddles are comfortably in profit, the S&P term structure is now roughly flat so I have cautiously started writing Jun straddles against the long Sep and Dec positions.
GS
Lootman wrote:TheMotorcycleBoy wrote:Purely out of curiousity, GS. But when "you" write options, who do you trade them with? I can't it figure out.....it's like....surely because you synthesised them yourself, how can the buyer price them?
He doesn't literally "write" or create those options. It's just a term for selling options contracts rather than buying them.
GoSeigen wrote:Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
GoSeigen wrote:[
Crazy, I know, but with just 1.5 days' trading left S&P May options are priced the same as they normally would be four weeks from expiration so I've taken a short May strangle today
GoSeigen wrote:GoSeigen wrote:Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
Crazy, I know, but with just 1.5 days' trading left S&P May options are priced the same as they normally would be four weeks from expiration so I've taken a short May strangle today.
15% return on the posted margin in two days if the S&P opens between 2800 and 2825 on Friday. Loss if it's above 2870 or below 2660.
JDot wrote:With the recent market falls, funds and shares are offering high dividend yields and low price to earnings ratios. When do we know when the best time to pull the trigger is, and buy buy buy?
GoSeigen wrote:GoSeigen wrote:GoSeigen wrote:Options curve still busy righting itself. I continue to write options. Today wrote a few S&P Dec 2300 puts and 3225 calls.
Crazy, I know, but with just 1.5 days' trading left S&P May options are priced the same as they normally would be four weeks from expiration so I've taken a short May strangle today.
15% return on the posted margin in two days if the S&P opens between 2800 and 2825 on Friday. Loss if it's above 2870 or below 2660.
Turned out okay in the end. Haven't seen the contract note yet but I think the S&P opened around 2825 so close to maximum profit on that two-day trade.
At the open I rolled the short ITM call positions into a short June ATM contract taking 100 of premium.
GS
GoSeigen wrote:GoSeigen wrote:GoSeigen wrote:
Crazy, I know, but with just 1.5 days' trading left S&P May options are priced the same as they normally would be four weeks from expiration so I've taken a short May strangle today.
15% return on the posted margin in two days if the S&P opens between 2800 and 2825 on Friday. Loss if it's above 2870 or below 2660.
Turned out okay in the end. Haven't seen the contract note yet but I think the S&P opened around 2825 so close to maximum profit on that two-day trade.
At the open I rolled the short ITM call positions into a short June ATM contract taking 100 of premium.
GS
Still selling volatility, a few more added this week. VIX remains above 30 and S&P has been trading in a range for more than a month now. Personally am leveraged long UK stocks and still buying but don't know whether this market is going up or down so happy to keep trading the options.
GS
GoSeigen wrote:GoSeigen wrote:GoSeigen wrote:
Turned out okay in the end. Haven't seen the contract note yet but I think the S&P opened around 2825 so close to maximum profit on that two-day trade.
At the open I rolled the short ITM call positions into a short June ATM contract taking 100 of premium.
GS
Still selling volatility, a few more added this week. VIX remains above 30 and S&P has been trading in a range for more than a month now. Personally am leveraged long UK stocks and still buying but don't know whether this market is going up or down so happy to keep trading the options.
GS
Well, the S&P has strongly broken out of its range. FTSE is following the US skyward. The VIX has finally decided to drift back to normal (but still elevated) levels and the Put-Call ratio is strongly in favour of calls. My short straddles are under water for now, but the call leg of a long SEP straddle I bought right back in March is finally in profit (the put leg was closed out long ago).
This all has prompted me to take a first tentative short call writing just a few ATM (3150) Aug S&P calls. Will add if the market continues making new highs, but also will be looking to close the put legs of the short straddles to free up margin. No point doing it too soon though because their value is dropping rapidly.
GS
GoSeigen wrote:Having closed most of the put legs on my short straddles I started the week very heavily short (mostly Jun) calls with strikes all the way down to 2800. Today's falls are welcome as the Jun contracts will rapidly lose value and I can close them out or let them expire next Friday. 2825 or lower next Friday would be ideal...
Opened a long Dec straddle today as the vol curve inverted.
GS
johnhemming wrote:He does quite a bit of option trading. I don't personally want to do that much on options. I prefer to make assessments as to when I think the market is undervaluing something and then to buy it. This allows me not to have to concentrate on what is going on too much so I can get on with other things.
GoSeigen wrote:johnhemming wrote:He does quite a bit of option trading. I don't personally want to do that much on options. I prefer to make assessments as to when I think the market is undervaluing something and then to buy it. This allows me not to have to concentrate on what is going on too much so I can get on with other things.
Yes, I do it on the side, though I do have a long-term more conventional portfolio.
My contributions about options on this thread started as a comment that when markets are highly volatile, it's difficult to pick the bottom or a direction of travel -- it's often better to do nothing.
I noted though, that those are often good times to trade options, because non-directional (i.e. market neutral) positions can be taken. One can then react to subsequent moves. [e.g. if one is long a put and a call and the market shoots up, one can sell the call. OTOH if one is short a put and a call and the market rises the short put might be covered. ]
My posts are an effort to document in real time the kind of trade I am making. Sorry if some of the language is jargon; that is the nature of the beast. I requested my posts be moved to a new board due to their non-newbie nature but the mods declined and other posters said they were interested. Thus I'll keep posting here but feel free to ignore my scribbles!
GS
P.S. Yesterday's straddle in profit. May add more today.
TheMotorcycleBoy wrote:GoSeigen wrote:P.S. Yesterday's straddle in profit. May add more today.
Keep posting GS!
I understand bits and pieces about options. But what I don't know is why the one to which you currently refer is called a "straddle".
Matt
Users browsing this forum: No registered users and 7 guests