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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,534 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old March 30th, 2013, 11:03 AM   #1171 (permalink)
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I think the take home message with those videos is:

IT CAN BE DONE.

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Old March 30th, 2013, 11:54 AM   #1172 (permalink)
Market Wizard
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Interesting that she went through some of the stuff we go through. TOS was calling her because she was showing up on their risk lists. They didn't say if she had to scale back her trading because she was on the risk list.

He was just amazed that a retail trader was doing that well.

Also she usually rides the contracts out to expiration.

She also mentioned that you have to research for hours and hours and hours.

On the screen there was a column for % chance ITM. Is that a TOS calculation? Anybody here know how that is calculated?

She said she sold options that were 5% chance going ITM or less. She also rode them until they were 30% chance ITM before getting out.

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Old March 30th, 2013, 12:35 PM   #1173 (permalink)
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ron99 View Post
Interesting that she went through some of the stuff we go through. TOS was calling her because she was showing up on their risk lists. They didn't say if she had to scale back her trading because she was on the risk list.

He was just amazed that a retail trader was doing that well.

Also she usually rides the contracts out to expiration.

She also mentioned that you have to research for hours and hours and hours.

On the screen there was a column for % chance ITM. Is that a TOS calculation? Anybody here know how that is calculated?

She said she sold options that were 5% chance going ITM or less. She also rode them until they were 30% chance ITM before getting out.

I was playing around with the OX probability calculator and it has the same probability tools but you must type in the information. It does not list each option and the % for each one to go (or be ITM). I am guessing that the listed options on that screen were from a TOS platform. Not sure, maybe someone else here can look at that.

Even though the account size required to trade the SPX would have to be large, the ES should play out the same way for smaller accounts. She only follows three markets, makes things easier. Everything thing she mentioned make sense. So simple. Oddly enough, I started looking at the ES options a few weeks back and I intend to look a little harder now. You really have to approach trading as a business.

Speaking of the SP500....There has been a lot of talk about the market needed to pull back and my 2 cents tells me that it will happen soon.

Bearish divergence showing up with the new highs and volume tapering off. Puts are more expensive now also = more insurance being purchased. North Korea and Cyprus variables always there too....

Extra for you Ron...It is a beautiful day here in NW Florida....Highs in the mid to upper 70's, no clouds, light wind and bikinis everywhere!!!! Why couldn't you have posted these videos on Tuesday!!!!

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Old March 30th, 2013, 01:51 PM   #1174 (permalink)
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Sell in May and go away again this year for ES? Three years in a row strong drop in May.

opts, we want videos of the bikinis!

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Old March 30th, 2013, 01:58 PM   #1175 (permalink)
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Futures Edge on FIO
Hey guys,

I've seen those videos before when I first decided to start this and its amazing an "ordinary" person who is not some big time financial analyst can do that well and that should be inspiration for all of us.

The ITM/OTM numbers are freely available in the TOS platform when your looking at any option whether stock or commodity.

thanks

V

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Old March 30th, 2013, 02:32 PM   #1176 (permalink)
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V, does TOS say anywhere how they compute the ITM/OTM numbers? I looked at their online manual and that didn't mention it.

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Old March 30th, 2013, 02:33 PM   #1177 (permalink)
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ron99 View Post
Sell in May and go away again this year for ES? Three years in a row strong drop in May.

opts, we want videos of the bikinis!


Chateau Motel Pool Cam - Panama City Beach, FL

Looks like beer pong poolside....Too many dudes though...

Hope my girlfriend is not on this thread..

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Old March 30th, 2013, 04:14 PM   #1178 (permalink)
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Can anybody tell me where I can get the probability of my actaul positions being in the money?

Thanks.

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Old March 30th, 2013, 04:53 PM   #1179 (permalink)
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Hey there Ron,

Not quite sure how TOS calculates it out; I found this link on the internet but not sure if it explains it either.

Forums - ThinkOrSwim's Probability OTM, ITM, of Touching Calculator

thanks

V

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Old March 30th, 2013, 06:19 PM   #1180 (permalink)
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alfredoe View Post
Can anybody tell me where I can get the probability of my actaul positions being in the money?

Thanks.


Who do you trade through? They should have the tools. Or a demo account with someone might have that available...

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