er2 naked future option journal

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.
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Why will you change your strategy to spreads? Before you started this journal, you mentioned that spreads are harder to adjust when compared to naked writings. With span margin, you get a higher leverage using naked than using spreads.
 
Quote from yip1997:

Why will you change your strategy to spreads? Before you started this journal, you mentioned that spreads are harder to adjust when compared to naked writings. With span margin, you get a higher leverage using naked than using spreads.
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i am proud of my earnings; but not complacent. i believe spreads are more difficult to manage; but with the span type margin i can be just as far out and still protect with a 20 or 30 pt cushion. i had always planned on receiving less credit for 2007 and my margin requirements will be much, much less than naked(which is low too).

i am looking to clear 1pt instead of 2pts; but with the reduced margin i will put on a few extra contracts to bring my total dollar's to 60 or 70% of naked writing.
 
Thank you very much for this journal.

I've written a bunch of naked options on stocks but never had any specific strategy for them so I don't know if I've jsut been lucky.

It's nice to see that consistency can be achieved at least in futures.
 
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