I ran a journal here in 2019:
https://www.elitetrader.com/et/threads/global-options-trades.330518/
The first post there provides some background.
In the intervening time, I have continued to read, learn, analyse, backtest, etc and have moved from single long directional positions, through credit and debit spreads, alighting most recently on using butterflies.
One major source of help was @destriero - for which, many thanks - but I have struggled to find a significant edge predicting movement in volatility, or to adjust positions with consistent profitability.
The butterfly structure does seem to work well for my directional views though. I've been following Caroy's Weekly Pin Butterfly Strategy journal with great interest, and although using different methodology, we have taken a similar path in terms of pitfalls and successes. Thanks to @caroy for the insight and inspiration.
I'm continuing to trade options on a range of indices, fx, and oil, but have also recently incorporated some single name stocks.
Timeframes have come down from trade durations of several weeks to between 2 and 20 DTE at opening. I place a range of closing orders, and occasionally, these have filled during the same day. I haven't attempted to trade intraday.
The last 50 trades have produced 39% gross profit (ignoring commission) on VaR (opening spread in the case of symmetrical butterflies).
Average duration has been 5.9 days.
I'll try to pop trades on here on the day that they are opened, and then when closed, and would welcome constructive thoughts, ideas and criticism.
https://www.elitetrader.com/et/threads/global-options-trades.330518/
The first post there provides some background.
In the intervening time, I have continued to read, learn, analyse, backtest, etc and have moved from single long directional positions, through credit and debit spreads, alighting most recently on using butterflies.
One major source of help was @destriero - for which, many thanks - but I have struggled to find a significant edge predicting movement in volatility, or to adjust positions with consistent profitability.
The butterfly structure does seem to work well for my directional views though. I've been following Caroy's Weekly Pin Butterfly Strategy journal with great interest, and although using different methodology, we have taken a similar path in terms of pitfalls and successes. Thanks to @caroy for the insight and inspiration.
I'm continuing to trade options on a range of indices, fx, and oil, but have also recently incorporated some single name stocks.
Timeframes have come down from trade durations of several weeks to between 2 and 20 DTE at opening. I place a range of closing orders, and occasionally, these have filled during the same day. I haven't attempted to trade intraday.
The last 50 trades have produced 39% gross profit (ignoring commission) on VaR (opening spread in the case of symmetrical butterflies).
Average duration has been 5.9 days.
I'll try to pop trades on here on the day that they are opened, and then when closed, and would welcome constructive thoughts, ideas and criticism.
