What are the best markets to sell options

[lasner]

What is the safest way to add income to your commodity account with options?

Would you say it's through spreads. I looking to add a small amount of income each month through options while trading futures.

I have a good amount of experience trading futures...but practically none with options.

 

[commiebat]

Quote from lasner:

It seems like the odds of most options doubling is relatively high

What on earth could bring anybody to make a ridiculous statement like that?

 

[lasner]

You don't think the chances of the price of an option doubling is high

 

[Gustaf]

Quote from lasner:

You don't think the chances of the price of an option doubling is high

You cannot say like that, come one options have strike prices, near strikes have higher chances of doubling. Options on volatile market also have higher chances of doubling.

 

[lasner]

Would you recommend writing options with under a month of expiration or longer two- three months of expiration.

 

[bigbiscuit]

Quote from lasner:

What is the safest way to add income to your commodity account with options?

Would you say it's through spreads. I looking to add a small amount of income each month through options while trading futures.

I have a good amount of experience trading futures...but practically none with options.

Don't suppose you've been reading James Cordiers' articles or books by any chance? He's always advocating this method to beginners... Firstly forget this whole notion of generating income, as if selling naked is like some harmless way to make some dough on the side... Maybe look into incorporating options to your futures trading... understand synthetics, how to hedge etc; then see what you think...
I personally think there's nothing wrong with selling naked, so long as you know what your outs are...

 

[lasner]

Quote from bigbiscuit:

Don't suppose you've been reading James Cordiers' articles or books by any chance? He's always advocating this method to beginners... Firstly forget this whole notion of generating income, as if selling naked is like some harmless way to make some dough on the side... Maybe look into incorporating options to your futures trading... understand synthetics, how to hedge etc; then see what you think...
I personally think there's nothing wrong with selling naked, so long as you know what your outs are...

No I've never read his book....I've looked into hedging with options but I like the idea of adding income.

Naked seemed good...but the exit strategy is what I'm getting caught up on. I was thinking if the option doubles then exit. That seems to work O.K. for options that have 3-4 months of expiration left....seems too risky for anything closer say under a month.

 

[commiebat]

Quote from bigbiscuit:

I personally think there's nothing wrong with selling naked, so long as you know what your outs are...

There are two outs. You can be out of the money, or you can be out of money.

 

[sugar]

Quote from lasner:

I'm going to be selling naked options in commodity markets.

Hi lasner,

which is your criterion in the options selection?

 

[lasner]

Quote from sugar:

Hi lasner,

which is your criterion in the options selection?

I use elliott to trade....I will pick markets that are trading according to elliott. Like I said I'm completely new to trading options.

I sold naked options in the past for about a month. Almost all options will expire worthless but you have to time your exit when it goes against you. Trying to exit it when the value of the option doubles just doesn't seem to fruitful

I guess I'll try spreads....like I said I want to add income