Another month of successful selling indices options without any adjustment or losses. My total profit including commissions but without interest and other fees is $13,300 in all of my accounts. Corn and wheat contributed to the total profit with several losses and rollovers.
Vertical spreads became my trade in indices. It requires much less margin than naked ones and gives me a peace of mind with limited losses. The down sides are higher commissions, smaller premiums and harder rollovers if needed. In my current under capital and fully invested conditions I will have to stay with this strategy until I recover from -$30,000 cash currently. In theory I have recovered 80% of my losses from last summer's big hit in grains.
I may consider to stop selling grains options. It's too volatile, trending hard and longer. I often get slapped on both directions since I hedge them. I need to look into selling bonds and Forex futures as alternatives. Both categories had thin volume for far OTM options when I tried them last year. I will check them out again and ask around to see how other people do it.
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