• Australian (ASX) Stock Market Forum

Quick Intro from a Premium Seller

Discussion in 'Derivatives' started by Virge666, Sep 7, 2016.

  1. Virge666

    Virge666 Active Member

    Posts:
    41
    Likes Received:
    3
    Joined:
    Sep 7, 2016
    Hi guys,

    Quick intro before i jump right in... been an option trader on and off for about 15 years. Those of us who remember the optionetics courses from years ago will be able to pick my vintage. I trade Strangles, Iron Flys, rarely debit spreads and butterflys. I find selling premium more sucessful than buying spreads, but you need a decent size account to cover the margin. I use IB for all trades at around $1-$2 a side in slippage

    Been mildly successful, I trade a smallish account and look to make about 3-5% a month, I trade the aussie banks, XJO, BHP and RIO. Couple of others if I can find some liquidity. With Daylight savings running - I also trade the USA options, which is so much easier. RUT, TLT, XDA and GLD to name a few. So much liquidity and much smaller spread.

    Not sure if I will continue the US trading when DST changes... I am not an early morning person !

    Anyway - GDay all, hoping to find some like minded guys on here with ETO experience to chat with and share experiences.
     
    Warriortrader likes this.
  2. mjim

    mjim Well-Known Member

    Posts:
    87
    Likes Received:
    1
    Joined:
    Jun 6, 2016
    Hi I did the vanilla type Covered call writing on ASx stock/ US stock. Naked option selling n FTSE futures options experienced the meaning of "eat like a king and then sxxt like an emperor"
    Do you do Married PUT or Married CALL? specially on Futures?
     
  3. Virge666

    Virge666 Active Member

    Posts:
    41
    Likes Received:
    3
    Joined:
    Sep 7, 2016
    Hi mate,

    I am not much of a covered call writer. Unless i actually own the stock. I am normally just a spread trader, so a strangle, I will sell a couple of naked calls and a couple of naked puts.

    I am long a bunch of the usual stocks like banks and the big miners and for those I will always do covered strangles. The margin isnt bad as i already own the stocks and only one side will ever be ITM.

    I am pretty good at managing strangles... so go with what you know i guess
     
  4. minwa

    minwa Well-Known Offender

    Posts:
    560
    Likes Received:
    30
    Joined:
    Oct 10, 2012
    Welcome..used to do a fair bit of selling too, much less so nowadays.

    Portfolio margin if you qualify for makes life much easier for those US ETFs. Better alternative is using futures options instead - ES/GC has much lower margin than SPY/GLD. Lower commissions too. Only you may not have some symbols like the ETFs do.
     
  5. Virge666

    Virge666 Active Member

    Posts:
    41
    Likes Received:
    3
    Joined:
    Sep 7, 2016
    Cheers mate - finding some good success with the liquid aussie stocks presently. But BHP and RIO seem to be my bread and butter.

    Would love to see some volatility in the market though.. this is boring as
     
  6. gkh

    gkh Member

    Posts:
    9
    Likes Received:
    0
    Joined:
    Mar 13, 2014
    Hi,

    I too am a premium seller - for the last 10 years. Used to trade US before Thinkorswim kicked out its Australian customers in 2012. But I hated trading in the middle of the night.

    Now I concentrate on naked OTM strangles on the XJO. I put a trade on every month. I do Iron flys on the banks, BHP and RIO or just sold puts and calls depending on volatility and my guess at price movement. I use Commsec - the tools are non-existent and the commissions are high - but with ASX span margining and the ability to use my share portfolio as security means I don't need to cash secure as you do with IB.`

    Would be interested in sharing trade management ideas and general thoughts. Look forward to hearing from you.
     
  7. hamli

    hamli Well-Known Member

    Posts:
    62
    Likes Received:
    1
    Joined:
    Jan 17, 2016
    I've been trading U.S markets last couple of years. @ 30% ROC prior year, @ 50% ROC year to date. I like the larger selection of liquid products and lower slippage in U.S markets.

    I sell calls, puts, strangles, straddles, iron condors, vertical spreads, ratio spreads, covered writes and other variations.

    I buy calendars, horizontal spreads, vertical spreads

    I use equities & futures, and operate a portfolio margin account. I prefer equity, because rolling and managing them are a lot cleaner. But for things like CL, NG, ZS, ZC etc it just makes a lot more sense using futures due crappy or non-equivalent ETFs.

    I'm a fairly active trader, and average 50+ trades per week. Keen to learn more ways to make money.
     
    Warriortrader likes this.
  8. Virge666

    Virge666 Active Member

    Posts:
    41
    Likes Received:
    3
    Joined:
    Sep 7, 2016
    Much better until daylight saving kicks in...

    Who's with me USA traders...
     
    Warriortrader likes this.
  9. Jackwhitfield

    Jackwhitfield New Member

    Posts:
    2
    Likes Received:
    0
    Joined:
    Jan 4, 2017
    Hi All,

    I am new to the scene and looking to sell naked puts. Can anyone recommend a good broker with a good platform that will allow me to sell puts on US stocks even tho I am an Aussie? I know Interactive is one but I am curious to find out if there are any options?

    Thanks for your time guys!
     
  10. Virge666

    Virge666 Active Member

    Posts:
    41
    Likes Received:
    3
    Joined:
    Sep 7, 2016
    IB or tastyworks
     
  11. Warriortrader

    Warriortrader Member

    Posts:
    13
    Likes Received:
    0
    Joined:
    Jan 10, 2017
    Hi All,

    Im new here but an Options Trader for over 12 years. Like Virge666, I am somebody that does follow the Tastytrade philosophy....though I do make the odd exception, once in a while.

    I trade the US exchanges, exclusively.

    Strategies I like and often use include Strangles, Straddles, Iron Condors and flys, Credit and Debit Spreads, Ratio spreads, Calendar spreads and a Tastytrade strategy called the Jade Lizard.

    I was looking forward to their new brokerage called Tastyworks, which I thought would be open to us here in Australia. The platform was created by Tastytrade, who were the creators of ThinkorSwim.

    Unfortunately, I have heard from a good resource, that Tastyworks isn't available to us here, because they have issues with their clearing house.

    Drat...

    Be that as it may....feel free to touch base and happy to chat with any trader and talk shop...

    Have a nice day, and thanks for reading through this.

    WT
     
  12. Virge666

    Virge666 Active Member

    Posts:
    41
    Likes Received:
    3
    Joined:
    Sep 7, 2016
    Righto - that makes two of us...

    Surely there are a few more floating around here
     
  13. Warriortrader

    Warriortrader Member

    Posts:
    13
    Likes Received:
    0
    Joined:
    Jan 10, 2017
    I know a couple more in Aus...one here in Melbourne like me....and one in Queensland....
     
Loading...

Share This Page