Calnder spreads Options OIL

rsh01

Experienced member
1,184 299
I only trade short strangles on them. Exactly on /CL contracts.

what expiry out do you short? assume closish to expiry (weeks-2mths?) for max theta decay?
do you adjust/roll if price gets close to strike? or just close out?
 

optionsrules

Junior member
14 0
I am shorting them max 45 days out and if it gets close to one of the strikes, I adjust the position. Last time I had to adjust oil 7 times in 45 days but with all these adjustments I doubled the original max profit...
 

LMessi10

Newbie
7 0
I am shorting them max 45 days out and if it gets close to one of the strikes, I adjust the position. Last time I had to adjust oil 7 times in 45 days but with all these adjustments I doubled the original max profit...

Would you consider automating this adjustment process and incorporating it into your Spreading logic??
 

LMessi10

Newbie
7 0
What do you mean by "spreading logic"?

Hi OptionsLogic,

I mean where the trader mentions:

I adjust the position. Last time I had to adjust oil 7 times in 45 days but with all these adjustments I doubled the original max profit.

We have traders scripting similar strategies so the manual adjustment can be automated. I guess I would need to know more about what determines how he/she adjusts this?
 

optionsrules

Junior member
14 0
Hi,

I would rather adjust them manually because I also look at the market conditions first. I do not like to automate it because it is a multiple dimensional game:)

take care,
Gery
 

LMessi10

Newbie
7 0
Hi,

I would rather adjust them manually because I also look at the market conditions first. I do not like to automate it because it is a multiple dimensional game:)

take care,
Gery


Cool, thanks Jerry. I'm at Actant should you wish to discuss any other ideas! :D
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock