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Selling Options on Futures?


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Selling Options on Futures?

  #1241 (permalink)
 kevinkdog   is a Vendor
 
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ron99 View Post
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?


I only picked up 2 of them - I'm still working with a small test acct, and frankly I was shocked I was filled on the first one!

Good thing I had used a GTC order a few days ago - although these can be dangerous too.

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  #1242 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
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I enjoy picking up GTC bid orders that people forgot about. Happens more than you would think.

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  #1243 (permalink)
 
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 eudamonia 
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I'm pretty jealous of your fills Kevin. That seems to be an important component of all of this - knowing where to place your orders appropriately.

I'm still trying to get a reasonable fill for Nat Gas calls (which I've had on since yesterday). Trying to get a fill at 0.005 on NGM35C. Was at the ask this morning on the news but none filled. I would work 0.004 but the ROI is below 3% so not sure its worth it.

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  #1244 (permalink)
 kevinkdog   is a Vendor
 
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eudamonia View Post
I'm pretty jealous of your fills Kevin. That seems to be an important component of all of this - knowing where to place your orders appropriately.

I'm still trying to get a reasonable fill for Nat Gas calls (which I've had on since yesterday). Trying to get a fill at 0.005 on NGM35C. Was at the ask this morning on the news but none filled. I would work 0.004 but the ROI is below 3% so not sure its worth it.


Oddly enough, I placed the order to sell 1 on 4/2, when the price was around 3.1. I made it a GTC order in hopes it would get filled in RB went up a little, so I never expected it to get hit after price fell to 2.9. Then when I checked to make sure the fill wasn't a mistake, I saw the bid at .0016, and I sold another.

It didn't quite make up for some of the non-options losses I've had this week, but still nice nevertheless!

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  #1245 (permalink)
 
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 opts 
NW Florida
 
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kevinkdog View Post
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!

Every dog has a bone thrown to them every once in a while...Meanwhile I somehow received a double whammy: Kidney stone on the way....Half a gallon of water gone so far....I was told it was small, ~2mm so I can pass it in the comfort of my own home. Meds on hand. This is my second one, first one about 12 years ago. Tonight will be filled with joy...back here in a few days....

Trade well...and may the Force be with you.

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  #1246 (permalink)
 kevinkdog   is a Vendor
 
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opts View Post
Every dog has a bone thrown to them every once in a while...Meanwhile I somehow received a double whammy: Kidney stone on the way....Half a gallon of water gone so far....I was told it was small, ~2mm so I can pass it in the comfort of my own home. Meds on hand. This is my second one, first one about 12 years ago. Tonight will be filled with joy...back here in a few days....

Trade well...and may the Force be with you.

I like that "Every dog has a bone thrown to them every once in a while" !!!


Good luck with the stone. I'm a 2 time survivor of that. Not fun.

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  #1247 (permalink)
 kevinkdog   is a Vendor
 
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I thought I'd share my very simple dashboard of current positions. I use this to easily see if any of my positions should concern me. If they do, I then dig deeper (margin calcs, loss calcs, etc).


The horizontal line is where I sold options (or super close to the strike price).



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  #1248 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
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eudamonia View Post
I'm pretty jealous of your fills Kevin. That seems to be an important component of all of this - knowing where to place your orders appropriately.

I'm still trying to get a reasonable fill for Nat Gas calls (which I've had on since yesterday). Trying to get a fill at 0.005 on NGM35C. Was at the ask this morning on the news but none filled. I would work 0.004 but the ROI is below 3% so not sure its worth it.

It is now bid at .007. Sometimes you have to wait to get filled. Sometimes the market just moves too fast and you don't get any. Patience is the key. As you did, don't chase the market too far.

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  #1249 (permalink)
 
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 eudamonia 
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Nice push up this morning on Nat Gas that I wasn't anticipating. Got filled on those June 5 Calls I had sitting out there from yesterday at 0.005. Seems I need to be a bit careful of that since what was a delta of 0.02 yesterday became a delta of 0.04 today.

GTC is your friend until it isn't

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  #1250 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
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Kevin, are those TS charts from their regular platform or their futures platform? I like your idea. Thanks for sharing.

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