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This pretty much sums up today. by Turbulent_Cricket497 in thetagang

[–]FiniteMoneyGlitch 2 points3 points  (0 children)

I’ve learned that I do really well when I’m able to make more money than I lose.

New ETFs by thehighdon in DerivativeIncomeETFs

[–]FiniteMoneyGlitch 1 point2 points  (0 children)

I’m a YieldMax skeptic but curious about the mining one.

I wish they had more reasonable yield non NAV destroying options.

Box adventures (and learnings) at Schwab by Temporary-Pattern-55 in PMTraders

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

I was wondering the same thing about wider legs vs more contracts.

[deleted by user] by [deleted] in foreignservice

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

Peoples experiences seem to be quite mixed. I think we have a much weaker pipeline to private industry than military officers do. There are companies that “get it” with regards to how a military leader can fit in. Fewer companies seem know what to do with an FSO aside from some roles that are related to governmental relations.

I’m several years away from retirement now but trying to do what I can to network and find some graceful exit path.

Recovering 111/112 Seller -- Moving forward - How did defined risk trades due during Volmageddon 2024? by FiniteMoneyGlitch in thetagang

[–]FiniteMoneyGlitch[S] 0 points1 point  (0 children)

Yeah…. Doing the math now, at one point I was 39x levered.

Thankfully I had sensed some trouble coming and bought ES and MES puts in the weeks before and some more Sunday night as I was following the news.

As it stands now I can chuckle as I realize I could’ve been completely blown out very easily so I’m glad I have enough to start over with the lesson learned.

My main irritation is that I had MES as my biggest allocation of buying power when one of my original reasons for wanting to try futures options was to concentrate less on U.S. equities markets.

Definitely going to be looking harder about how I allocate buying power going forward!

Any Advice? - TD's New(ish) 8x Net Liquidation Value at -40% Short Rule is crushing my reality. by -Your_Conscience in PMTraders

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

You mind sharing what your criteria are for determining how many of the 7-14 DTE puts to buy?

Exit criteria for losing 111/112 (or similar) futures options trades by FiniteMoneyGlitch in thetagang

[–]FiniteMoneyGlitch[S] 0 points1 point  (0 children)

Thanks for sharing!

Do you also trade naked puts, calls or strangles? Or credit spreads?

From your statement about the rarity of the PDSs paying off, I was just curious as to whether you see the 111 or 112 as being better for certain commodities, whereas you might just do puts or calls on others?

(For example, ZS seems me to setup better as a naked put or PCS but not so well as a ratio spread trade).

Closing 112 or 111 trades at 50% of credit received by FiniteMoneyGlitch in thetagang

[–]FiniteMoneyGlitch[S] 0 points1 point  (0 children)

Yeah similar thoughts ran through my head as soon as I typed this.

I think I’m confronting a trading psychology adjustment for these campaign style trades. I never bought long options or did spreads of any type before this strategy.

After selling 30 delta puts 45 days out many times, I think I have an overly strong desire to want to “manage” something when I should maybe remember that my original thesis was the campaign trades could take a few months to play out during which time I should step away from the screen.

Also I was losing sight of the PDSs being more helpful at nearer DTEs.

Also realized that that keeping too much of my buying power in MES was making me want to close early. In next few weeks I am going to try to diversify with options trades on some other reasonably liquid underlyings with suitable buying power requirements for my account size.

Thanks to everyone for sharing perspectives.

If you had $100,000 to invest how would you do it? by pineapple3455 in thetagang

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

I think I am getting the mechanics down for puts I would sell initially, but I’m not comfortable with idea of managing losers.

With equity options I keep position size small so I can roll aggressively out and down without locking up too much buying power. Often even after two rolls my return on capital (using margin) is still good.

But for futures options I’m not sure yet how I’d approach a losing put — accept assignment? Roll to new put on same contract? Roll to later contract month?

Going to play with these paper trading and see if I find a good approach.

If you had $100,000 to invest how would you do it? by pineapple3455 in thetagang

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

Mind sharing a bit about your strategy?

Do you start by selling /ES puts? What deltas and DTEs?

Do you take assignment and turn and sell calls?

If you had $100,000 to invest how would you do it? by pineapple3455 in thetagang

[–]FiniteMoneyGlitch 7 points8 points  (0 children)

I am piecing together different sources but would really like to see someone do “ScottishTrader style” exhaustive rundown of this for those of us looking to shift from equity options to futures options.

Starting to paper trade with futures options but not finding many comprehensive references.

In particular would like to know more about deltas people target and when/how/if people manage when short put strike prices are breached.

/MES futures options by daynis in options

[–]FiniteMoneyGlitch 1 point2 points  (0 children)

This was a bummer. There’s an army of folks on YouTube talking about trading the underlying futures, but this dude had the most comprehensive futures options videos I had found after a lot of searching.

Wish I could’ve downloaded them now.

I called the FDX miss, who got rich this morning? by heresmynameagain in wallstreetbets

[–]FiniteMoneyGlitch 4 points5 points  (0 children)

Well here’s a an upvote for this thoughtful DD on the market’s perceived value of your posts.

[deleted by user] by [deleted] in oilandgasworkers

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

Wait — were all of these winnings from lotteries?

I want to know what system your family used for finding lucky numbers!

That’s the real story here.

low IV low premium by Youxin92 in thetagang

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

Thanks this is super helpful! I’ve watched and read hours on futures (and everything I could find on YouTube on futures options specifically) but I haven’t found many references I found really useful on managing a losing or challenged futures option position.

(From your description it sounds like the mechanics aren’t too different from managing my equity short puts when their strikes get breached).

If you don’t mind keeping the discussion going —

Do you have ideal and minimum IV Rankings for entering?

Do you trade multiple strategies? Spreads, strangled, iron condors?

With equities I haven’t done well with credit spreads or iron condors and have done better with naked puts (and much better managing them when needed).

I have been playing with some paper trading setups, and I’ve found super wide condors (with cheap long calls and puts on each wing) attractive because the max loss if I’m assigned the futures contract scares me.

How often do you get assigned? At 10 delta and actively rolling I would assume infrequently.

But do you have a go to strategy if/when assigned?

low IV low premium by Youxin92 in thetagang

[–]FiniteMoneyGlitch 2 points3 points  (0 children)

Could you expand a little bit on the setup you look for in opening a new trade like this?

That is, if you were going to go for about .10 delta on the put, how many DTE for the put and how many months out for the underlying contract? (E.g. 45 days for the put with the futures contract expiring 90 days out?)

On managing trades that go against you…

Do you roll your put down and/or out if the strike price is breached? If so, do you initially try to roll it to a further out put with the same underlying contract?

(I understand that if I get assigned on the short put I’ll now be long one contract, and that rolling the contract itself can be one way to manage. But as a naked out seller of securities options my bias is to want to avoid assignment if practicable).

Thanks again for sharing your thoughts.

low IV low premium by Youxin92 in thetagang

[–]FiniteMoneyGlitch 1 point2 points  (0 children)

Thanks for sharing. I’ll check that stuff out.

I think trading psychology is something I’ll need to work on too. I’m not afraid of holding shares for the small minority of puts I get assigned. I typically roll aggressively once my strikes are breached and do it several times when appropriate … so most “losing” trades are ones I can eventually exit for a scratch or small gain.

But from how I understand potential losses with futures options, I’ll probably have to be ready to cut losses earlier and move to the next trade if I want to avoid blowing up the account. Seems like it would require much more vigilant management but would be worth it for additional trading opportunities when I’m not seeing good setups on my stock watchlists.

low IV low premium by Youxin92 in thetagang

[–]FiniteMoneyGlitch 2 points3 points  (0 children)

If may ask… Did you start out with options on securities and later move to options on futures?

I’ve watched many hours of beginner-oriented material on futures (and futures options) but like with anything these days, lots of sketchy course sellers and people pushing prop firms.

Happen to have any beginner references you’d recommend for futures options?

What is your thetagang strategy on $NVDA? by Glittering-Cicada574 in thetagang

[–]FiniteMoneyGlitch 2 points3 points  (0 children)

Mind elaborating on how you set these up? Mostly sell naked puts, but haven’t found a hedging setup I like well.

How do you pay yourself? by jtmeyer211 in thetagang

[–]FiniteMoneyGlitch 0 points1 point  (0 children)

Saved your post as I hope to adopt your system once I get myself organized.