The Put Seller's Journal

[earth_imperator]

I think I made an important discovery with calendar spread trading:
https://www.elitetrader.com/et/threads/calendar-secrets.369662/
This posting with an example data set is so far the most interesting finding in the above thread.

Another interesting research posting by me with a table of combinations...:
https://www.elitetrader.com/et/threads/constructs-with-more-than-3-legs.369486/#post-5676436

Another interesting thread of mine about some important option terminology (nomenclature):
https://www.elitetrader.com/et/threads/option-nomenclature.369642/

As my current research is about options spreads, this wiki page is good:
https://en.wikipedia.org/wiki/Options_spread

 

[lightninboy]

I could be interested in a Put Seller's Journal, but it's kind of hard to find the put selling in this thread.

 

[earth_imperator]

I could be interested in a Put Seller's Journal, but it's kind of hard to find the put selling in this thread.

Be patient, coming soon...

 

[earth_imperator]

My very first 2-leg spread trade (a vertical bull put spread, ie. LP.K < SP.K) was very succesful:
I earned the credit fully (PnL=+30.90%), but then was wrongly thinking that I would get assigned (since I won! ).
Of course an assigment means the other side makes profit (and this side a loss, both can also be partial).
But since I took the full credit then in fact no assignment was to expect. In technical terms, both the ShortPut as well the LongPut were OTM (ie. expired worthless), therefore no assignment, which of course always is a good thing for a short seller.

Still, the thread where this case was discussed and solved/cleared was initially interesting, but then unfortunately became unpleasant... :-(
https://www.elitetrader.com/et/thre...on-was-expecting-the-underlying-stock.369718/

In later postings there I also explained a little bit my method of finding such possibly lucrative spread trades.

 

[earth_imperator]

In this posting I've posted the results of my research on calendar spreads:
https://www.elitetrader.com/et/threads/calendar-secrets.369662/page-11#post-5680746

In this posting I've explained how I handle the daily market data for decision making:
https://www.elitetrader.com/et/threads/huge-cboe-options-data-price-hike.366264/page-3#post-5680901

 

[earth_imperator]

In this posting I've explained why IV does not matter at expiration:
https://www.elitetrader.com/et/threads/the-iv-risk-with-short-strangles.369874/#post-5683322

And another example of mine about how I analyze 2-leg Put vertical spreads and calendar spreads:
https://www.elitetrader.com/et/threads/short-put-is-deep-itm-advice.369595/page-9#post-5682421
In that posting the percent signs (%) are missing in the values in parentheses (x%) , but one one can just imagine it...

 

[earth_imperator]

Here I explained how to achieve being fully invested by using a wise diversification method:
https://www.elitetrader.com/et/thre...ur-monthly-returns.369890/page-5#post-5683665

 

[lightninboy]

Here I explained how to achieve being fully invested by using a wise diversification method:
https://www.elitetrader.com/et/thre...ur-monthly-returns.369890/page-5#post-5683665

That sounds like folly. It doesn't hurt to have some reserve capital and why diversify into something that is less than the best?

 

[earth_imperator]

That sounds like folly. It doesn't hurt to have some reserve capital and why diversify into something that is less than the best?

Since there are so many positions, then one can anytime optimize it:
if there is a new better trade candidate then close the current worst one or two and open this new better one...

 

[lightninboy]

You've got 1,100 posts worth of trading and you don't know what the best deal looks like by now?