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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,280 / 5,728
Last Reply:December 6th, 2016 (05:26 PM) Attachments:642

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Selling Options on Futures?

Old May 30th, 2013, 05:40 PM   #1671 (permalink)
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ron99 View Post
Here's a spreadsheet I use when doing spreads.

One chart shows profit/loss. The other ROI%.

The yellow cells are the ones you can change.

A2 is the multiplier or value of $1 of futures. You need to change this based on the commodity. For example, CL is 1000. GC 100, ES 50.

A5 is the interval between prices in cells A6:A106.

A6 is the lowest price for the price range.

B2:E2 is the strike price of the option.

B3:G3 is the premium or price of the future or option.

B4:G4 is the quantity of each.

K2 is the margin required.

Columns T:Z are extra columns if you need them. Copy and insert them between columns B:H

K6:K106 is ROI%. I forgot to label it.

These notes are also on the Worksheet Notes.

Very cool, much appreciated Ron.....

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Old May 30th, 2013, 06:10 PM   #1672 (permalink)
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To my option chart spreadsheet I added fees per contract in cell I4 so that you can get a true Net P/L and ROI%.

Also in cell L2 I added an excess factor for the cash excess on top of margin. A factor of 2 would be the margin plus 2X times margin in excess. So $500 margin + $1000 excess would be $1500 margin and excess.

Attached Files
Register to download File Type: xlsx Option Chart.xlsx (34.1 KB, 69 views)
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Old May 31st, 2013, 06:31 AM   #1673 (permalink)
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ron99 View Post
To my option chart spreadsheet I added fees per contract in cell I4 so that you can get a true Net P/L and ROI%.

Also in cell L2 I added an excess factor for the cash excess on top of margin. A factor of 2 would be the margin plus 2X times margin in excess. So $500 margin + $1000 excess would be $1500 margin and excess.


Perfect! Thanks again

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Old June 3rd, 2013, 06:15 PM   #1674 (permalink)
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Crude up...


Wondering if the low pressure system trying to form in the Gulf of Mex has the oil platform people thinking about shutting down for a few days? I know we need the rain here in NW Florida....

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Old June 4th, 2013, 01:36 PM   #1675 (permalink)
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Futures Edge on FIO
Hurricanes don't matter as much for crude oil production. The US is down to 17.7% of its oil production coming from offshore in the Gulf. It was 29% 3 years ago.

But they would still matter if they affected oil refineries.

Gulf oil production peaked at 1,752 b/d Sep 2009. March 2013 it was 1,262.

For NG, Gulf production is down too. March 2010 NG from the Gulf was 210,438 for the month. March 2013 it was 119,622. 4.7% of US production. Before 2002 it was 400,000+.


Last edited by ron99; June 4th, 2013 at 01:46 PM.
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Old June 4th, 2013, 02:42 PM   #1676 (permalink)
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Quoting 
NEW YORK--Cotton futures for delivery next month continued their climb on Tuesday after a limit-up settlement in the previous session, a sign of concerns over supplies of the fiber in the near-term.

Cotton for delivery in July on ICE Futures U.S. were up 0.9% at 83.03 cents a pound. Benchmark prices for the fiber fell to a four-and-a-half-month low last week, which encouraged buying, analysts said.

"We got cheap enough," said Sharon Johnson, a senior cotton specialist at Knight Futures. "These mills just jumped all over it."

The price difference between cotton for delivery in December, which corresponds to the upcoming crop year, and July narrowed to 0.82 cents, from 2.7 cents on Friday. The movement shows higher near-term demand for fiber.

For those of us still short July cotton calls.

However, keep in mind:


Quoting 
Ideas of good weather for U.S. crops are still around and were supported in part by the USDA reports released yesterday afternoon. Speculators and mills were said to be the best buyers. The weather has improved in all areas with some precipitation in Texas areas and drier weather in the forecast for the next few days for the Delta and Southeast. Dry weather is forecast for the Delta and Southeast, and warm weather is expected in Texas this week. Ideas are that farmers can get a lot of planting done with dry and warm conditions.


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Old June 4th, 2013, 07:13 PM   #1677 (permalink)
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ron99 View Post
Hurricanes don't matter as much for crude oil production. The US is down to 17.7% of its oil production coming from offshore in the Gulf. It was 29% 3 years ago.

But they would still matter if they affected oil refineries.

Gulf oil production peaked at 1,752 b/d Sep 2009. March 2013 it was 1,262.

For NG, Gulf production is down too. March 2010 NG from the Gulf was 210,438 for the month. March 2013 it was 119,622. 4.7% of US production. Before 2002 it was 400,000+.


Well SHugar Ron. You were supposed to say "Yes, that's exactly right!"

Wondering why the production in the Gulf is down. There has been so much news about the US slowly becoming oil independent because of the new drilling methods, oil fields, and more fuel efficient vehicles. Are the fat oil barons purposely slowing down production in hopes of causing a shortage scare to support prices? We'll never know. Oil companies will always and forever have control until I get my patent on my cold fusion drive. That'll show 'em!

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Old June 4th, 2013, 09:48 PM   #1678 (permalink)
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ron99 View Post
Interesting. ES was up 16 out of 18. But the ES was up big a lot of those days. The average for the last 18 Tuesdays is +8.25.

For 2012 ES was up 26 out of 51 Tuesdays. No pattern.

so it came to an end after 20 up tuesdays in the DJI, not seen since 1900. shame i was just about to double up next tuesday.

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Old June 5th, 2013, 10:18 AM   #1679 (permalink)
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ron99 View Post
It's best to use yesterday's settlement price for the option when calculating ROI and figure that margin and premium will move at about the same rates up or down.

Is there somewhere in OX that I can find yesterday's settlement price, or is it better to download it from the exchange?

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Old June 5th, 2013, 01:45 PM   #1680 (permalink)
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Is there somewhere in OX that I can find yesterday's settlement price, or is it better to download it from the exchange?

OX doesn't show settlement prices but you can get them by subtracting today's change from the current price. That is available on the Order Detail page. The Option Chain page. And your Positions page.

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