At http://www.thetatraderz.com we are starting to incorporate selling far out of the money options on oil and futures
Oil is often considered an uncorrelated asset because its price movements tend to be independent of other financial markets, such as stocks and bonds. This means that changes in the price of oil do not tend to have a direct impact on other assets, and vice versa. This lack of correlation can be beneficial for investors because it can help to diversify their portfolios and reduce risk.
For example, during times of economic downturn, stocks and bonds tend to perform poorly, while the demand for oil may remain unchanged or even increase. This can help to offset losses in other parts of an investor’s portfolio, providing a degree of stability and reducing overall risk.
However, it’s important to note that while oil prices and other financial markets may not be directly correlated, they can still be influenced by broader economic and geopolitical factors. For example, a global recession could impact demand for oil and cause prices to decline, even if the correlation between oil and stocks is low.
Here is an oil trade I made earlier this week
If it earns $45 for $1200 in BP that is a return of 3.75%.
Gold is another uncorrelated asset that could benefit with diversification in the futures account. You could pretty much say the same thing about gold as you can in oil. In fact chat.openai did that 😛
These AI bots will take over the world one day, but at least we can do trades with a high probability of success in the meantime.
Anyway here was a gold iron condor I put on last week
A reasonable amount of trades for a 10k account would like this. 1 covered strangle on /mes ($3000 BP), a low delta mes strangle ($1000). 1 low delta /mcl strangle ($1000) OR 1 50 width GC iron condor. When are they going to make the micro gold contracts???
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