Writing options over Crude Oil Futures

Discussion in 'Options' started by Optionswriter, Jun 21, 2007.

  1. Does anyone use this strategy? I have been selling naked calls and puts over Crude Oil Futures with moderate success

    Win ratio is about 80-90% but usually one loss could wipe out 4-5 profitable trades.

    I employ a risk management technique by buying a call or put to protect my position should the underlying price threaten my strike price.

    Overall, I still come out ahead.

    If anyone had some experience with optons wrting over futures contract, please feel free to share it.
  2. Yeh man, have been doing for a while.

    Just manage the trades proactively, leave plenty of margin to make adjustments as needed and leave hope at the door. :)

    Happy trading!
  3. FXforex


    SellingNaked ....... you replied to a post made over 6 years ago. :eek:
  4. Yeh man, was bored at work. Also, wanted to get the options sellers forums going.

    I remember how hard it was to get help online when I was a budding options seller. :)
  5. 06-21-07 11:15 PM

    11-02-13 02:45 PM

    Good times to sell vol?
  6. It's always a good time to sell...as long as volume does not dry up.
  7. This for me anyway has been the only way I've been making money trading. I'm never naked but selling prem when IV is above a 4 hour avg is pretty steady. And now that I pay super close attention to IV it does seem to give me tells on directional trades or at least gives me a clue as to what way to skew my delta. And when I feel stuck or scared of a data release I get long vega further out so I'm at least still collecting a little theta on the spread.

    This is no way to get rich but my level of frustration has been greatly reduced compared to when I was just trading patterns and S&R.

    Sure if some crazy shit happens out of the blue I'll get nicked but by never being naked it gives me time to adjust things so the worst thing that happens is I just don't make any money.

    Another problem I have is my gut telling me what to do. Some weeks I have this feeling like this has been way to easy and something bad is going to happen to make volatility pop through the roof so I unwind everything and take a few days off. Low and behold if I just did nothing I would have just continued to rake it in. But I guess trading anything in any style has that aspect and I just caulk it off as a human condition.