er2 naked future option journal

UPDATE NEW POSTIONS

my current positions er2 @ 763.70:



-10 DEC 835 call sold @ .80

er2 traded @ 770

current value: .27



-10 dec ER2 puts 692.5 sold@ 2.50

er2 traded @ 751.2 when sold

today value: 1.91

-10 dec ER2 puts 695 sold@ 1.75

er2 traded @ 769 when sold

today value: 2.05

i do have some put and call debit spreads as an experiment in rut above and below my shorts.

account value: 102,880.46
 
Domestic,

Can you tell me/us why you decided to write naked options on ER2 instead of ES, 10 notes (ZN) or 30 year bonds (ZB). I believe the options volume on the these futures are higher then for ER2.
 
Quote from domestic:


-10 dec ER2 puts 695 sold@ 1.75

er2 traded @ 769 when sold

today value: 2.05
More...

What would your stop loss be at for this particular trade? I'm curious about the money management style you use.

Thanks
 
Quote from swingtrader123:


Can you tell me/us why you decided to write naked options on ER2 instead of ES, 10 notes (ZN) or 30 year bonds (ZB). I believe the options volume on the these futures are higher then for ER2.
More...
I've written options on all of these at one time or another. The biggest positive for ER2 is the IV--somewhere around 25-30%. ZN and ZB have had their IVs completely crushed. 6% is crazy low, particularly when bonds are having the relatively frequent single-day 1% true range lately.

ER2's IV has not skyrocketed to the same extent ES's has during catastrophic events (9/11, for example).
 
Quote from swingtrader123:

Domestic,

Can you tell me/us why you decided to write naked options on ER2 instead of ES, 10 notes (ZN) or 30 year bonds (ZB). I believe the options volume on the these futures are higher then for ER2.
More...

no complicated answer here; i am more experienced with er2. es pays half of er2 for each margined dollar. i know it is also more volatile.
 
Quote from polpolik:

What would your stop loss be at for this particular trade? I'm curious about the money management style you use.

Thanks
More...

my stop is at 5.5 for this trade. i determine this on an ever changing set of rules......i look at how my debit spreads will perform (thus reducing losses)and how the roll down and out will be priced in the event my stop is hit. these #'s and scenario's change daily.
 
UPDATE NEW POSTIONS

my current positions er2 @ 794.10:



-10 DEC 835 call sold @ .80

er2 traded @ 770

current value: .75



-10 dec ER2 puts 692.5 sold@ 2.50

er2 traded @ 751.2 when sold

CLOSED TODAY @ .20

-10 dec ER2 puts 695 sold@ 1.75

er2 traded @ 769 when sold

CLOSED TODAY @ .25


account value: 107,248.88
 
Quote from domestic:

UPDATE NEW POSTIONS

my current positions er2 @ 794.10:


account value: 107,248.88
More...

i see a little slow down of account value,would you set the price closer?is there any fast way to roll out or roll over?
 
UPDATE NEW positions

no current positions er2



-10 DEC 835 call sold @ .80

er2 traded @ 770

closed @ .35


account value: 111,315.66

i closed the calls last week. i will most likely stay in cash because i just transferred my gains for the year out of my account. i will start in 07 doing spreads on er2. essentially this thread is done. i hope it was interesting to some. i netted 80k and plan on doing the same next year using credit and debit spreads.
 
credit and debit spreads? No more naked?

Thanks for the great journal, it was a good read.

Quote from domestic:

UPDATE NEW positions

no current positions er2



-10 DEC 835 call sold @ .80

er2 traded @ 770

closed @ .35


account value: 111,315.66

i closed the calls last week. i will most likely stay in cash because i just transferred my gains for the year out of my account. i will start in 07 doing spreads on er2. essentially this thread is done. i hope it was interesting to some. i netted 80k and plan on doing the same next year using credit and debit spreads.
More...
 
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