Calnder spreads Options OIL

[moka2]

Does anybody trade CSOs? Calender spread Options
on WTI oil for example
Light Sweet Crude Oil (WTI)

 

[optionsrules]

I only trade short strangles on them. Exactly on /CL contracts.

 

[rsh01]

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]

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]

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??

 

[optionsrules]

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

What do you mean by "spreading logic"?

 

[LMessi10]

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]

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]

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! 😀