Selling Options on Futures? - Options on Futures | futures io social day trading
futures io futures trading


Selling Options on Futures?
Updated: Views / Replies:730,119 / 6,393
Created: by ron99 Attachments:737

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 737  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #1541 (permalink)
Trading for Fun
Reno, USA
 
Futures Experience: Intermediate
Platform: esignal
Favorite Futures: Oil
 
Posts: 70 since Jul 2011
Thanks: 14 given, 9 received

Brit,

Can you give a link to the video you were talking about from Doc Severson ?

Thanks

V

Reply With Quote
 
  #1542 (permalink)
Elite Member
Milton Keynes UK
 
Futures Experience: Intermediate
Platform: Investor/RT, Sierra Chart
Favorite Futures: Futures Options, CL
 
Posts: 157 since Jun 2009
Thanks: 74 given, 115 received


vmaiya73 View Post
Brit,

Can you give a link to the video you were talking about from Doc Severson ?

Thanks

V

Unfortunately it looks like the download links have been pulled as it has now sold out.
I have a PDF document for it which I can send you if you PM me your email address.

Reply With Quote
 
  #1543 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,727 since Jul 2011
Thanks: 793 given, 4,777 received


FWIW CL total option OI has been dropping.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #1544 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,727 since Jul 2011
Thanks: 793 given, 4,777 received

Here are other commodities option OI.

...2012.2013 (in millions)
ES 1.6 2.5
GC 1.3 1.6
C 1.6 1.6
S 0.9 0.7
W 0.3 0.4
LH 0.2 0.1
LC 0.3 0.2
CL 3.5 3.2
NG 215k 199k
RB 63k 50k
HO 97k 73k

ES and metals are up. The rest are down.

Reply With Quote
 
  #1545 (permalink)
Elite Member
Portland OR
 
Futures Experience: Intermediate
Platform: None
Favorite Futures: Stocks
 
Posts: 56 since Dec 2012
Thanks: 87 given, 29 received

Now, that it seems the May drop is probably not going to materialize this year in ES, CL and the volatility in other commodities pretty low compared to historical numbers (there might be a coupel of exceptions which I have missed), what are people trading/watching?

I am looking at some CTN13 calls to sell.

Reply With Quote
 
  #1546 (permalink)
10 out of 10
Sacramento, CA
 
Futures Experience: None
Platform: None
Broker/Data: OX and DeCarley
Favorite Futures: Futures options
 
eudamonia's Avatar
 
Posts: 310 since Jul 2010
Thanks: 299 given, 424 received

Right now I'm looking at June CL 130 calls and July Soybeans 1250/1240 puts (doing a vertical to get a decent ROI and offset the likely increased volatility).

I have a lot of softs on already Cotton, Sugar, Coffee so looking to diversify to some other markets.

Reply With Quote
The following user says Thank You to eudamonia for this post:
 
  #1547 (permalink)
 Vendor: www.decarleytrading.com 
Las Vegas NV United States
 
Futures Experience: Advanced
Platform: QST, Zaner360, ONYX, NinjaTrader, Rithmic, CTS
Broker/Data: RCG, Crossland, Gain Capital, ADMIS, Dorman, many feeds and platforms.
Favorite Futures: options
 
decarleytrading's Avatar
 
Posts: 28 since Mar 2013
Thanks: 1 given, 64 received

We aren't counting out the May drop just yet

We certainly respect the fact that seasonals don't happen as planned every year, but we also feel like over-extended bull markets are the best environments for such a pullback to happen. After all, in such a market buy stops have likely already been run, and sell stops are lining the downside. All it will take is a trigger to get the ball rolling.

With so many people expecting the May sell-off, it isn't surprising that we saw an early May rally (although I wasn't expecting it to be quite this swift). I guess what I'm saying is...perhaps this is the time to be nibbling on short calls in the CL and ES at distant strikes.

Many of our clients are holding short ES calls and short crude strangles, which are lopsided with a bearish bias. Unfortunately, we were caught up in the dramatic crude plunge/rally and our timing wasn't perfect on entering the short ES calls, but the beauty of option selling is that there is some room for error. I just hope we have enough

*There is substantial risk of loss in trading futures and options.

If you have any questions about the products or services provided by DeCarleyTrading, please send me a Private Message or use the futures.io "Ask Me Anything" thread.
Reply With Quote
The following 3 users say Thank You to decarleytrading for this post:
 
  #1548 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,727 since Jul 2011
Thanks: 793 given, 4,777 received


Quoting 
Consider this encouraging research: The S&P 500 has been rallying for six months in a row, which has happened 48 times since 1950. Following these six-month winning streaks, stocks have historically continued rising. Sixty percent of the time, the S&P 500 climbed 0.79% over the next month; 84% of the time, stocks increased 3.50%, 7.77% and 11.77% the next three, six and 12 months following the streak, respectively.

Don't sell in May: Reasons to extend your stay

Reply With Quote
 
  #1549 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,727 since Jul 2011
Thanks: 793 given, 4,777 received


decarleytrading View Post
We certainly respect the fact that seasonals don't happen as planned every year, but we also feel like over-extended bull markets are the best environments for such a pullback to happen. After all, in such a market buy stops have likely already been run, and sell stops are lining the downside. All it will take is a trigger to get the ball rolling.

With so many people expecting the May sell-off, it isn't surprising that we saw an early May rally (although I wasn't expecting it to be quite this swift). I guess what I'm saying is...perhaps this is the time to be nibbling on short calls in the CL and ES at distant strikes.

Many of our clients are holding short ES calls and short crude strangles, which are lopsided with a bearish bias. Unfortunately, we were caught up in the dramatic crude plunge/rally and our timing wasn't perfect on entering the short ES calls, but the beauty of option selling is that there is some room for error. I just hope we have enough

Can I ask what month/strikes they are holding?

Reply With Quote
 
  #1550 (permalink)
 Vendor: www.decarleytrading.com 
Las Vegas NV United States
 
Futures Experience: Advanced
Platform: QST, Zaner360, ONYX, NinjaTrader, Rithmic, CTS
Broker/Data: RCG, Crossland, Gain Capital, ADMIS, Dorman, many feeds and platforms.
Favorite Futures: options
 
decarleytrading's Avatar
 
Posts: 28 since Mar 2013
Thanks: 1 given, 64 received



ron99 View Post
Can I ask what month/strikes they are holding?

In the ES, the June 1635 calls.

Crude is a little more complicated...we've re-strangled and rolled puts up at least once to catch up with volatility and deltas. But at the moment we are in a July 86/97 strangle. The call is uncomfortably close, we are typically at least $7 to $10 out of the money on each side, but this has been a wild move so we are willing to give it a little more time. The back up plan will likely be to either roll into an August strangle, or buy back the July 97 and sell another put and 2 calls higher up.

Accounting for all adjustments and locked in profits on puts, the approximate draw down per lot is roughly $1.50 ($1,500). It's been painful, but in light of the $12 drop and subsequent $11 rally it could have been much worse. Ironically, playing it safe (rolling puts into bullish strangles) when the market was trading in the high 80's was our downfall.

*There is unlimited risk in naked option selling!

*There is substantial risk of loss in trading futures and options.

If you have any questions about the products or services provided by DeCarleyTrading, please send me a Private Message or use the futures.io "Ask Me Anything" thread.
Reply With Quote
The following user says Thank You to decarleytrading for this post:

Reply



futures io > > > > Selling Options on Futures?

« PC-SPAN | - »
Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 7 November 7th, 2017 12:06 PM
Crude Oil (CL) futures inverse pairing options Big Mike Commodities Futures Trading 8 December 12th, 2013 12:00 PM
Recommend futures, options Broker? sam1197 Reviews of Brokers and Data Feeds 17 March 27th, 2013 01:42 AM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 01:40 PM
Zen-Fire Futures options tici88 Reviews of Brokers and Data Feeds 1 July 30th, 2011 10:16 AM


All times are GMT -4. The time now is 12:16 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-12 in 0.10 seconds with 19 queries on phoenix via your IP 54.145.16.43