Winning Options Strategy on CT

I like it as a bear spread, I guess. You've got switch risk against your position. The switch will flip if CT rallies. You're showing a three cent bid and you bot it, so why aren't you showing the fill price rather than the order ticket?

And you're hedging it in a bull ps.

But yeah, 10% annual on initial margin with risk. Fantastic.

 

I was wrong. I read the spread as three cent bid. It is three offered. Thanks.

 

I'm new on the forum, just wanted to bring something to have a good start ! What's your opinion on CT BTW ?

 

Given the upcoming US election, and the supply for this market in particular, I am bearish. At least short term

 

But am scratching my head with this trade, I guess I am not enough skilled in options

 

Sorry, but my experience is limited to Grains and some CL (professionally). The good news is that it's only a 1M spread so that's low risk. The risk is in the switch, but it's OTM and three wide in your favor.

I like it.

 

I will add that I don't think you need the hedge but wondering why you went ITM on the (two lot) ps?

 

Glad you like it. The PS is for financing, I was short dollar so I needed some premium. The skew is in my favor. With this sale I financed the $ shortage and bought some lower puts.

 

ahh yeah, should have seen that.

 

Question, how can the long call be cheaper when it is closer to the money and further out in time?