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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,022 / 5,727
Last Reply:Yesterday (12:40 PM) Attachments:642

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Selling Options on Futures?

Old March 12th, 2013, 06:18 PM   #1001 (permalink)
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ron99 View Post
Good daily energy commentary by Dominick Chirichella
Dominick Chirichella - Featured Contributor of CME Group

Those articles are some of the best I've ever read...

Thanks Ron

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Old March 13th, 2013, 02:00 PM   #1002 (permalink)
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I was checking this thread for a while and finally decided to take a dive and have sold CLK3 80 @ .08 x 10 contracts with a delta of 0.03 and sold CLM3 75 @ .10 x 10 with the same delta (0.03).
Ron is this a good start? Thank you for starting this thread, I have been day trading crude by selling options in deeps or gaps up and selling based on price and intraday support and resistance and it was very intense as I was selling very close to the current price and using the front month.

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Old March 13th, 2013, 02:38 PM   #1003 (permalink)
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kisskais View Post
I was checking this thread for a while and finally decided to take a dive and have sold CLK3 80 @ .08 x 10 contracts with a delta of 0.03 and sold CLM3 75 @ .10 x 10 with the same delta (0.03).
Ron is this a good start? Thank you for starting this thread, I have been day trading crude by selling options in deeps or gaps up and selling based on price and intraday support and resistance and it was very intense as I was selling very close to the current price and using the front month.

Welcome.

Yes it is OK. My system has delta 2 more decimal places and the CLM3 75 are at 0.255 delta. The CLK3 80 are at 0.246 with the last trade of .07. The delta changes based on the last trade.

If I were you I would close the June CLs before the end of April. The last 3 years Jun CL has crashed $11, $16 & $9 the first week of May. The "sell in May and go away" from stocks (ES) also applies to most other commodities. Of course there is a chance it won't happen this year. Just be safe rather than sorry.

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Old March 13th, 2013, 02:50 PM   #1004 (permalink)
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Welcome.

Yes it is OK. My system has delta 2 more decimal places and the CLM3 75 are at 0.255 delta. The CLK3 80 are at 0.246 with the last trade of .07. The delta changes based on the last trade.

If I were you I would close the June CLs before the end of April. The last 3 years Jun CL has crashed $11, $16 & $9 the first week of May. The "sell in May and go away" from stocks (ES) also applies to most other commodities. Of course there is a chance it won't happen this year. Just be safe rather than sorry.

Thank you Ron for quick reply and guidance, I really believe on helping other traders and you an excellent source...
I'm using TOS platform and I'm not sure if can change the setting to reflect more decimal.
I will keep an eye on the June 75 and close it with a small profit.

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Old March 13th, 2013, 07:19 PM   #1005 (permalink)
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Futures Edge on FIO
ICE has reduced the maintenance margin on Cocoa by $100 and on Coffee by $550 effective 03/15/2013 .

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Old March 13th, 2013, 07:27 PM   #1006 (permalink)
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Full on geek:

Vader Trader

Trading options and having a little fun also....

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Old March 13th, 2013, 07:48 PM   #1007 (permalink)
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I love the fact that selling futures options is the dark side. Reminds me of this saying, "Come to the dark side, we have cookies"

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Old March 13th, 2013, 09:20 PM   #1008 (permalink)
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I love the fact that selling futures options is the dark side. Reminds me of this saying, "Come to the dark side, we have cookies"

HAHAHAHAHA

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Old March 14th, 2013, 10:07 AM   #1009 (permalink)
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kisskais View Post
I was checking this thread for a while and finally decided to take a dive and have sold CLK3 80 @ .08 x 10 contracts with a delta of 0.03 and sold CLM3 75 @ .10 x 10 with the same delta (0.03).
Ron is this a good start? Thank you for starting this thread, I have been day trading crude by selling options in deeps or gaps up and selling based on price and intraday support and resistance and it was very intense as I was selling very close to the current price and using the front month.

I want to clarify my previous response to this post. I said it was OK. But normally I would have said 80 puts in CL are too close to ITM. I would never do them. I have on Apr & May 70s. None higher. I sold the May 70s on 2/25 for .08.

I said it was OK because kisskais had prior experience selling close to ITM options. I would never recommend them to new option sellers.

On CL, because of its' volatility, you should be at least 15-20 dollars OTM.

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Old March 14th, 2013, 11:10 AM   #1010 (permalink)
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Ron..I was wondering why you were in agreement with the 80 puts. The first thing I thought was wow...these are a little close.

Only a few $s movement down and the premium on these can go up very fast. If 90 is broken watch these like a hawk. This is a major support area...

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