# Quick Intro from a Premium Seller



## Virge666 (7 September 2016)

Hi guys,

Quick intro before i jump right in... been an option trader on and off for about 15 years. Those of us who remember the optionetics courses from years ago will be able to pick my vintage. I trade Strangles, Iron Flys, rarely debit spreads and butterflys. I find selling premium more sucessful than buying spreads, but you need a decent size account to cover the margin. I use IB for all trades at around $1-$2 a side in slippage

Been mildly successful, I trade a smallish account and look to make about 3-5% a month, I trade the aussie banks, XJO, BHP and RIO. Couple of others if I can find some liquidity. With Daylight savings running - I also trade the USA options, which is so much easier. RUT, TLT, XDA and GLD to name a few. So much liquidity and much smaller spread.

Not sure if I will continue the US trading when DST changes... I am not an early morning person !

Anyway - GDay all, hoping to find some like minded guys on here with ETO experience to chat with and share experiences.


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## mjim (7 September 2016)

Virge666 said:


> Hi guys,
> 
> Quick intro before i jump right in... been an option trader on and off for about 15 years. Those of us who remember the optionetics courses from years ago will be able to pick my vintage. I trade Strangles, Iron Flys, rarely debit spreads and butterflys. I find selling premium more sucessful than buying spreads, but you need a decent size account to cover the margin. I use IB for all trades at around $1-$2 a side in slippage
> 
> ...




Hi I did the vanilla type Covered call writing on ASx stock/ US stock. Naked option selling n FTSE futures options experienced the meaning of "eat like a king and then sxxt like an emperor"
Do you do Married PUT or Married CALL? specially on Futures?


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## Virge666 (7 September 2016)

mjim said:


> Hi I did the vanilla type Covered call writing on ASx stock/ US stock. Naked option selling n FTSE futures options experienced the meaning of "eat like a king and then sxxt like an emperor"
> Do you do Married PUT or Married CALL? specially on Futures?




Hi mate,

I am not much of a covered call writer. Unless i actually own the stock. I am normally just a spread trader, so a strangle, I will sell a couple of naked calls and a couple of naked puts.

I am long a bunch of the usual stocks like banks and the big miners and for those I will always do covered strangles. The margin isnt bad as i already own the stocks and only one side will ever be ITM.

I am pretty good at managing strangles... so go with what you know i guess


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## minwa (7 September 2016)

Welcome..used to do a fair bit of selling too, much less so nowadays.



Virge666 said:


> but you need a decent size account to cover the margin.




Portfolio margin if you qualify for makes life much easier for those US ETFs. Better alternative is using futures options instead - ES/GC has much lower margin than SPY/GLD. Lower commissions too. Only you may not have some symbols like the ETFs do.


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## Virge666 (8 September 2016)

minwa said:


> Welcome..used to do a fair bit of selling too, much less so nowadays.
> 
> 
> 
> Portfolio margin if you qualify for makes life much easier for those US ETFs. Better alternative is using futures options instead - ES/GC has much lower margin than SPY/GLD. Lower commissions too. Only you may not have some symbols like the ETFs do.




Cheers mate - finding some good success with the liquid aussie stocks presently. But BHP and RIO seem to be my bread and butter.

Would love to see some volatility in the market though.. this is boring as


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## gkh (21 September 2016)

Hi,

I too am a premium seller - for the last 10 years. Used to trade US before  Thinkorswim kicked out its Australian customers in 2012. But I hated trading in the middle of the night.

Now I concentrate on naked OTM strangles on the XJO. I put a trade on every month. I do Iron  flys on the banks, BHP and RIO or just sold puts and calls depending on volatility and my guess at price movement. I use Commsec - the tools are non-existent and the commissions are high - but with ASX span margining and the ability to use my share portfolio as security means I don't need to cash secure as you do with IB.`

Would be interested in sharing trade management ideas and general thoughts. Look forward to hearing from you.


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## hamli (22 September 2016)

I've been trading U.S markets last couple of years. @ 30% ROC prior year, @ 50% ROC year to date. I like the larger selection of liquid products and lower slippage in U.S markets.

I sell calls, puts, strangles, straddles, iron condors, vertical spreads, ratio spreads, covered writes and other variations.

I buy calendars, horizontal spreads, vertical spreads

I use equities & futures, and operate a portfolio margin account. I prefer equity, because rolling and managing them are a lot cleaner. But for things like CL, NG, ZS, ZC etc it just makes a lot more sense using futures due crappy or non-equivalent ETFs.

I'm a fairly active trader, and average 50+ trades per week. Keen to learn more ways to make money.


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## Virge666 (22 September 2016)

Much better until daylight saving kicks in...

Who's with me USA traders...


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## Jackwhitfield (4 January 2017)

Hi All, 

I am new to the scene and looking to sell naked puts. Can anyone recommend a good broker with a good platform that will allow me to sell puts on US stocks even tho I am an Aussie? I know Interactive is one but I am curious to find out if there are any options?

Thanks for your time guys!


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## Virge666 (9 January 2017)

Jackwhitfield said:


> Hi All,
> 
> I am new to the scene and looking to sell naked puts. Can anyone recommend a good broker with a good platform that will allow me to sell puts on US stocks even tho I am an Aussie? I know Interactive is one but I am curious to find out if there are any options?
> 
> Thanks for your time guys!




IB or tastyworks


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## Warriortrader (10 January 2017)

Hi All,

Im new here but an Options Trader for over 12 years. Like Virge666, I am somebody that does follow the Tastytrade philosophy....though I do make the odd exception, once in a while.

I trade the US exchanges, exclusively. 

Strategies I like and often use include Strangles, Straddles, Iron Condors and flys, Credit and Debit Spreads, Ratio spreads, Calendar spreads and a Tastytrade strategy called the Jade Lizard. 

I was looking forward to their new brokerage called Tastyworks, which I thought would be open to us here in Australia. The platform was created by Tastytrade, who were the creators of ThinkorSwim. 

Unfortunately, I have heard from a good resource, that Tastyworks isn't available to us here, because they have issues with their clearing house.

Drat...

Be that as it may....feel free to touch base and happy to chat with any trader and talk shop...

Have a nice day, and thanks for reading through this.

WT


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## Virge666 (10 January 2017)

Righto  - that makes two of us...

Surely there are a few more floating around here


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## Warriortrader (10 January 2017)

I know a couple more in Aus...one here in Melbourne like me....and one in Queensland....


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## w37b (9 February 2017)

Hi all,
I'm new to this forum and thought I'd say hi.

Looking to start trading the US market again.
Used to sell covered calls / naked puts before.
I started learning about credit spread / iron condors / diagonals and how to defend with back ratios.
However, making adjustments is expensive due to the ticket charge (min $14.95 with OptionsXpress), even if all I want to do is buy/sell 1 contract.

I've looked into IB, but can only open a cash account which doesn't allow me to open spread trades.
It seems like the only way I can get around the margin issue is starting a company, but I'm not at that level yet. My account size is smallish, just above the PDT limit (USD$30k)

Do you guys selling naked puts / credit spreads trade through your own company?

I read in another thread that tastyworks won't be available here either which is disappointing.
I really loved ToS, especially with the ability to beta weight portfolios.

Thanks, hope to get to know some local US options traders too


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## Warriortrader (9 February 2017)

Welcome! I agree, OX can be quite expensive. IB gives you a Margin Account, if you trade as a business, meaning, get yourself an ABN. Neil Swanson, of IB, will give you more details. 

Good Luck


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## Virge666 (9 February 2017)

w37b said:


> Hi all,
> 
> I've looked into IB, but can only open a cash account which doesn't allow me to open spread trades.
> It seems like the only way I can get around the margin issue is starting a company, but I'm not at that level yet. My account size is smallish, just above the PDT limit (USD$30k)
> ...




I have had an IB account for ages and I just dont have this problem, even when it was small i could still do all these kinds of transactions. (sub $15K)

I have 16 trades on now that have naked options, I also have another 11 spread trades.

Why does everyone have so much trouble with this and I dont, have i ticked a box somewhere?  If we can figure this out - then surely it can help you guys who want that capability.

I also have a simple personal account

AC


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## w37b (18 February 2017)

Hi, 
It seems like IB changed their rules in 2014 as they were not in compliance.
There's a thread about it on the forums.
Maybe your account was opened much earlier and it wasnt affected?
Lucky you! 




Virge666 said:


> I have had an IB account for ages and I just dont have this problem, even when it was small i could still do all these kinds of transactions. (sub $15K)
> 
> I have 16 trades on now that have naked options, I also have another 11 spread trades.
> 
> ...


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## Virge666 (20 February 2017)

w37b said:


> Hi,
> It seems like IB changed their rules in 2014 as they were not in compliance.
> There's a thread about it on the forums.
> Maybe your account was opened much earlier and it wasnt affected?
> Lucky you!




yeah - i will take it. 

I would have guessed that they powers that be would have nerfed my account as well. Doesnt matter soon as once i am on Tastyworks, I will have SPAN and REG T margins.


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## w37b (25 February 2017)

Virge666 said:


> yeah - i will take it.
> 
> I would have guessed that they powers that be would have nerfed my account as well. Doesnt matter soon as once i am on Tastyworks, I will have SPAN and REG T margins.




You seem very sure it'd come here soon. 
I have also been put on the notification list once they open to international customers. 
Crossing fingers that it will happen in 2017.


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## Trader Duck (26 February 2017)

w37b said:


> You seem very sure it'd come here soon.
> I have also been put on the notification list once they open to international customers.
> Crossing fingers that it will happen in 2017.




I'm on the international list also.     A couple of days ago I was watching one of the TastyWorks "Confirm & Send" videos and Tom Sosnoff mentioned that they hope to be sending out international account invitations within a month - I can hardly contain myself !!!!!!!!


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## Warriortrader (2 March 2017)

w37b said:


> You seem very sure it'd come here soon.
> I have also been put on the notification list once they open to international customers.
> Crossing fingers that it will happen in 2017.




Hi w37b, I have sent you a Private Message ...have a look at your inbox...thanks for your interest in Tastytrade


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## rs77 (14 March 2017)

I have been trading options off-and-on over the last 17 years. In my first few years I was trading full-time on the ASX (mainly AMP, ANZ, BHP, CBA, NAB, RIO, WBC and XJO)  and was only ever on the buy side - I made some good money for a few years, but you would only ever make your annual salary from the one or two big wins in the year.

During those initial years I was introduced to premium selling using the Optioneer system, but the higher returns from being on the buy side were too alluring so I never really persevered with premium selling. Although I had one friend who did and he did quite well from it.

By the end of 2007 my buy-side options trading came to an end as I ended up wiping my account out. 

It wasn't until the end of 2015 that I came across the TastyTrade site and have been trying the premium selling strategies of Iron Condors, Iron Flys, Credit Spreads and Calendars to some success. I currently use OX as my broker and I can't wait for the TastyWorks team to allow Australian accounts!

The only downside with trading US markets is the time difference, but as I have a full-time job it wouldn't be any easier trading the Aussie markets anyway.


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## presaletrader (10 May 2017)

Hi guys,

I've just joined and may as well introduce myself to everyone too!
I'm pretty new on the Options trading block, still an IB paper trader (yugghhh) but have been a very keen student of Kirk Du Plessis (OptionAlpha) the last 6 months or so - and learning all about being on the right side of volatility trading...mostly selling Premium on Credit spreads, Iron Condors, Strangles, Straddles and the like.

Now I know I don't need to pitch to the clergy here, but I really appreciate the rhetoric I've learned from Kirk, where pricing your entry into a trade is likely the only thing you can ever control in the Options market and almost wipes out the reliance on any kind of directive speculation. Anyhows...I could go on and on but I'm really excited to find like minded Aussies and I'd really like to find out from some of you what type of IB account you have set up (Personal/Business?) and what the exact margin requirements are.

I've also watched a number of Tastytrade tutorials and value the lessons learned. I'd sure like to see it offered downunder. I think i did register a few months back, but when chatting online I was pretty much told Australia was off the cards.

I will try PM some of you guys soon to get more info on IB if possible. Am still trying to understand how much of these strategies Id be able to trade with IB with a small startup account.

Thanks all and don't give up on the trade!


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