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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,446 / 5,734
Last Reply:2 Hours Ago (01:01 AM) Attachments:642

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Selling Options on Futures?

Old May 21st, 2013, 03:07 PM   #1611 (permalink)
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ron99 View Post
I quit looking at SI. The ROI is too low.

It has been kinda thin on the roi for me...I was looking further out on the DTE for the next lot to perk that up somewhat.

Eyeing crude again also....

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Old May 21st, 2013, 03:16 PM   #1612 (permalink)
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rosho01 View Post
is POMO every tuesday?

I'm finding these for every day. https://mninews.marketnews.com/index.php/us-data-ny-fed-permanent-open-market-op...en-market-operations-149

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Old May 21st, 2013, 03:17 PM   #1613 (permalink)
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opts View Post
It has been kinda thin on the roi for me...I was looking further out on the DTE for the next lot to perk that up somewhat.

Eyeing crude again also....

I have been doing crude strangles.

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Old May 21st, 2013, 07:21 PM   #1614 (permalink)
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ron99 View Post
I have been doing crude strangles.

I am a bit anxious of writing calls under 120 and also given the margin requirements itís not very attractive, either (CLN). Likewise, anything near 80 on the put side seems a bit risky. And given that volatility is mild the premiums seem low, too. Quite a quandary Ö

Are you doing strangles on the July/August contracts?

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Old May 21st, 2013, 07:29 PM   #1615 (permalink)
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I am a bit anxious of writing calls under 120 and also given the margin requirements itís not very attractive, either (CLN). Likewise, anything near 80 on the put side seems a bit risky. And given that volatility is mild the premiums seem low, too. Quite a quandary Ö

Are you doing strangles on the July/August contracts?

Too late to do Julys and be far enough out of the money. I would never touch calls <120 or puts >75 for any month.

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Old May 22nd, 2013, 01:27 PM   #1616 (permalink)
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Coffee 3 calls

Hi,
Many of us reading this thread might be short Sep 3 calls and doing well thanks to attention drawn by Ron.

However the ever lasting bid is back at 8 ticks while Sep 2 calls are selling at 45 ticks or so. For those who are short big quantities, here is a free hedge - buy 1 of Sep 2 call and sell about 6 to 8 (depending on your commissions) Sep 3 calls for even money after commissions.

What that would do is covert the naked shorts in to ration spread (like 1 to 15 or so) and the Sep 2 calls would serve as a good hedge in case coffee decides to come back little. I personally doubt that Sep coffee would go back above 2 before expiration (and truly miracle if go above 3), in case it goes and settles above 2 at expiry than you can also make bundlle on the free hedge...

Margin wise it is about neutral for me - risk wise from my point of view it decreases the risk (though some may argue that now you are short even higher number of Sep 3 calls and hence higher risk).

Again this would work if you are short in size (like 20 plus contracts)...Just my 2 cents...Thanks.

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Old May 22nd, 2013, 05:04 PM   #1617 (permalink)
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Too late to do Julys and be far enough out of the money. I would never touch calls <120 or puts >75 for any month.

My thoughts exactly. I probably missed any opportunities for strangling in the July contract and August too doesn't seem attractive till this morning. Maybe today's drop might throw something up for the August comtract. A little anxious going to September, just yet.

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Old May 22nd, 2013, 06:09 PM   #1618 (permalink)
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Barrington View Post
My thoughts exactly. I probably missed any opportunities for strangling in the July contract and August too doesn't seem attractive till this morning. Maybe today's drop might throw something up for the August comtract. A little anxious going to September, just yet.

Don't forget about the hurricane scares that perk up during the summer months...regardless of the NOAA Hurricane forecasts. When a storm starts to form/track into the Gulf of Mex and the oil platforms shut down it's almost a guarantee that prices will jump up. Today's drop made selling puts even more attractive for those months. Charts (Sept) look like they can fall to around 90.

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Old May 23rd, 2013, 11:06 AM   #1619 (permalink)
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Some nice CLQ365P going at 0.04 this morning with crude down. That's $35 net premium with $78 margin and $156 buffer for a ROI of about 7% per month.

Interesting that Coffee is down below 130 now and the KCU33000C are still running 0.12.

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Old May 23rd, 2013, 11:25 AM   #1620 (permalink)
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eudamonia View Post
Some nice CLQ365P going at 0.04 this morning with crude down. That's $35 net premium with $78 margin and $156 buffer for a ROI of about 7% per month.

Interesting that Coffee is down below 130 now and the KCU33000C are still running 0.12.

Watching these strikes +/- also. Might get a few more $ down. 93 looks like support for the day so far.
.

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