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Selling Options on Futures?
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Selling Options on Futures?

  #1231 (permalink)
Trading for Fun
Reno, USA
 
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Did anybody do anything today ?

Unfortunately yesterday, wrote

/ES April EOM 1395 Puts and

/NQ April EOM 2610 Puts

sorry dont remember how much margin I put up but already feeling the heat especially on the /NQ puts.

thanks

V

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  #1232 (permalink)
10 out of 10
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No new trades for me today. Trying to get filled on NG calls but market was down again.

Those ES and NQ trades are end of April so I imagine they will be pretty sensitive to price fluctuations for the next week or so. I tried to get filled on some April ES but with only 3 weeks until expiration the price I wanted to justify the margin just wasn't going to happen.

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  #1233 (permalink)
Elite Member
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opts's Avatar
 
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vmaiya73 View Post
Did anybody do anything today ?

Unfortunately yesterday, wrote

/ES April EOM 1395 Puts and

/NQ April EOM 2610 Puts

sorry dont remember how much margin I put up but already feeling the heat especially on the /NQ puts.

thanks

V


Yes: I started to battle food poisoning (raw spinach I am guessing) at about 2am..not over yet.

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  #1234 (permalink)
Trading Apprentice
Fresno, California
 
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LoL..Hope you feel better Opts!!

I had a quick question for you guys. I sold my CL calls for 0.8 about a week and a half back. The market has since then gone against me but the value of the calls have decreased to 0.5. I was thinking that since I am up, if the market continues to go against me and the value goes back up to 0.8 to get out at break even minus trading costs. Would that be a good way of managing trades? How do you guys manage such trades should a scenario like that occur??

Thanks!!

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  #1235 (permalink)
Market Wizard
Cleveland, OH
 
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U.S. commercial crude oil inventories rose for the 10th time in 11 weeks and hit the highest levels in nearly 23 years, according to the Energy Information Administration.

Nationwide crude supplies, excluding the Strategic Petroleum Reserve, totaled 388.6 million barrels during the week ended March 29, up 0.7% from the previous week, the administration said April 3 in its Weekly Petroleum Status Report.

Last week's crude inventories were up 7.2% from a year earlier and the most since thre 389.5 million barrels on hand in July 1990. Supplies remain "well-above the upper limit of the average range" for this time of year, the report said.

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  #1236 (permalink)
Market Wizard
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vmaiya73 View Post
Did anybody do anything today ?

Unfortunately yesterday, wrote

/ES April EOM 1395 Puts and

/NQ April EOM 2610 Puts

sorry dont remember how much margin I put up but already feeling the heat especially on the /NQ puts.

thanks

V

Those puts are too high strikes. That is why you are feeling heat.

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  #1237 (permalink)
Market Wizard
Cleveland, OH
 
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rsb619 View Post
LoL..Hope you feel better Opts!!

I had a quick question for you guys. I sold my CL calls for 0.8 about a week and a half back. The market has since then gone against me but the value of the calls have decreased to 0.5. I was thinking that since I am up, if the market continues to go against me and the value goes back up to 0.8 to get out at break even minus trading costs. Would that be a good way of managing trades? How do you guys manage such trades should a scenario like that occur??

Thanks!!

CL is down $4 in two days. You are probably OK.

I always keep 2X the initial margin required for excess. If the increase in premium plus the increase in margin become greater than that excess, that is when I get out. Otherwise I stay in.

Of course if a major market turning event happens then you get out.

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  #1238 (permalink)
Market Wizard
Cleveland, OH
 
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Quoting 
Reuter's and the CME Group reported that the natural gas futures open interest on the New York Mercantile Exchange (NYMEX) climbed to a record high on Monday for the 11th straight day.

The total futures open interest, or the number of longs and shorts outstanding, climbed 18,496 contracts on Monday to a record 1,455,630. Futures open interest increased by more than 260,000 contracts, or a whopping 22%, on this recent run.

Hedge funds have increased their net-long position in natural gas futures, options and swaps for the sixth straight week. That puts the hedge funds long about 387,686 contracts their largest net long position in three years.

Add this huge quick increase in hedge fund longs with the changed weather forecast of warmer weather and I see NG dropping. Maybe quickly.

Problem is that NG call premium is dropping quickly too.

I'm going to wait until after the NG inventory number this morning. If market starts lower I will sell calls. But make sure you are far OTM. NG can move quickly and eat you up.

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  #1239 (permalink)
Market Wizard
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Too Good To Be True

I sold a couple of RBOB call options this morning. Seems too good to be true, since I placed the order a few days agao, and it wasn't filled until today (after the big drop).


Does this seem like a good trade, or did I somehow get tricked? It just seems too good to be true...


RBK3 3.6 Call - current futures price 2.915

sold 4/4, expire 4/25 - 21 days to expiration
Sold at .0016
Initial margin $280, with excess the total required was $840
premium received = $61.93 after fees
delta = .004

ROI = 10.68%


Either I was incredibly lucky, or I missed something BIG.


Comments appreciated!

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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  #1240 (permalink)
Market Wizard
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You didn't miss anything. I see the 3.40 calls traded real high too.

Instead of kevinkdog you are now luckydog! Did you get all 4 that traded?

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