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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,106 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old May 23rd, 2013, 06:02 PM   #1631 (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.

hi eudamonia,

is this with OX?

selling 1 CLQ365P contract @0.04 with OX i get:

net premium $24.79 (40-12.99-1.47-0.75)

commission ($12.99)
fees ($1.47)
trans fees ($0.75)

do you have much smaller fees? the 12.99 commission per contract is going to kill me on a lot of trades.

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Old May 23rd, 2013, 06:13 PM   #1632 (permalink)
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ron99 View Post
At very volatile times like this I increase the excess for CL to 3X or even 4X.

The 78 + 156 equals 234. Margin on a 70 put is 195 at OX. The premium is $40 higher. So your 234 just barely covers a $5 drop in futures. And maybe even not that if volatility increases and that jacks margin and premium up more than expected.


It sure looks like the buyer of the 300 coffee calls is putting on a hedge. He wouldn't be bidding it so much higher if he was trying to make profit.

Also that is what happened last year. OI went up but OI didn't drop when the buyer could have taken a profit. OI stayed high to expiration.


I managed to grab some 70's at $100 hoping and expecting a bounce from the 92.30 level......Living in Oz is tough trying to get decent premium on commoditites - you have to try guess where price might go and hope your orders are filled while asleep.

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Old May 23rd, 2013, 06:17 PM   #1633 (permalink)
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rosho01 View Post
hi eudamonia,

is this with OX?

selling 1 CLQ365P contract @0.04 with OX i get:

net premium $24.79 (40-12.99-1.47-0.75)

commission ($12.99)
fees ($1.47)
trans fees ($0.75)

do you have much smaller fees? the 12.99 commission per contract is going to kill me on a lot of trades.

You are looking at commissions on stocks. The total cost to execute was $3.50 comms plus $1.47 fees. So net was $35.03.

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Old May 23rd, 2013, 06:35 PM   #1634 (permalink)
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eudamonia View Post
You are looking at commissions on stocks. The total cost to execute was $3.50 comms plus $1.47 fees. So net was $35.03.

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


so the 'estimated' commission as per the scrn shot is wrong on the order form? odd.

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Old May 23rd, 2013, 06:40 PM   #1635 (permalink)
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rosho01 View Post
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so the 'estimated' commission as per the scrn shot is wrong on the order form? odd.

All US based clients have 3.50 per side. Outside US like myself have 12.99 per side unless you negotiate with them - I have manged to get $6.99 but they won't go any lower.....

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Old May 23rd, 2013, 06:48 PM   #1636 (permalink)
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crez View Post
All US based clients have 3.50 per side. Outside US like myself have 12.99 per side unless you negotiate with them - I have manged to get $6.99 but they won't go any lower.....

ah cool, thks. bit of a stitch up for non US traders!

had you been trading high volume/for a while before asking for the reduction?

did you just ask customer service?

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Old May 23rd, 2013, 07:05 PM   #1637 (permalink)
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rosho01 View Post
ah cool, thks. bit of a stitch up for non US traders!

had you been trading high volume/for a while before asking for the reduction?

did you just ask customer service?

Yeah, I reckon! I asked only a couple of weeks after a set up an account. I only average around 30 contracts a month but they seemed happy enough to offer 6.99. Still high in my opionion though, but the margin saving is more beneficial. And yes, just customer service.

Cheers

Adam

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Old May 23rd, 2013, 07:10 PM   #1638 (permalink)
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crez View Post
Yeah, I reckon! I asked only a couple of weeks after a set up an account. I only average around 30 contracts a month but they seemed happy enough to offer 6.99. Still high in my opionion though, but the margin saving is more beneficial. And yes, just customer service.

Cheers

Adam


cheers adam, just got mine changed to 6.99 and they will review again in 3 mths. makes a big difference.

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Old May 23rd, 2013, 07:18 PM   #1639 (permalink)
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rosho01 View Post
theres some good vids online of kyle bass seminars explaining the japanese situation & why it cannot be rescued.

edit: heres one vid....
Kyle Bass March 14 2013 - YouTube

& on cnbc today....

Bass On Japan's Turbo QE: "It Won't Be Enough" | Zero Hedge

"The BoJ has been in the market every day but 2 since April 4th trying to hold rates down (and is failing)..."

crikes.

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Old May 23rd, 2013, 11:52 PM   #1640 (permalink)
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eudamonia View Post
Tuesday May 28th, margins for Sugar will decrease 26% from $750 to $550.

Seasonal charts have big up move in June. But I suspect this year there is too much supply and that will hold things from rising too much.

Problem with SB is you have to get so close to get any premium. I put some on but not a lot.

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