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Selling Options on Futures?
Started: by ron99 Views / Replies:597,813 / 5,837
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Selling Options on Futures?

  #161 (permalink)
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alfredoe View Post
Hi Britt:

Thanks for your response.

I got the cash price from this page: Barchart.com - Futures Prices for Coffee

What could be the reason Barchart.com shows $193 today?

Where should I go to get the cash or spot price of any commodity?

Thanks.

Alfredo E.

Alfredo,

I am sorry but i can not explain this Barchart discrepancy, perhaps you should ask them to clarify.
I would suggest you use your brokers data as that is the price you will be trading at.
As Ron has already said, ignore the cash price as this is not what you are trading.
The option price is based entirely on the movement of the futures price and not the cash price, as Traderwerks has also stated.

Brit

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  #162 (permalink)
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Hello @ron99 and everyone participating in this thread,

Iím quite new with option selling and beginning with vertical spread. At this time Iím reading Cordierís book and enjoy it a lot.

I want to thank you for this interesting, motivating and inspirational thread that Iím sure is very useful for many silent readers as me.

DaveTrading.

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  #163 (permalink)
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Hi all,

Here is an update of the Sugar charts for anyone still in puts.
Longterm (10 renko)shows the massive short selling on the way down.
The shorter term (5 renko) shows the bullish accumalation over the past few days.

If Greek election results fail to cause the new bulls to cover in the event of another push down, then we could be close to an upside move as all the shorts from 21.23 have covered already.

If the results are favorable to the market there is ample short inventory going right back to 23.80 area to create a massive short covering rally.

Watch out for the Dollar index too, if that starts to drop that will provide further upside ammunition for prices.

Regards
Brit

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Selling Options on Futures?-sugar-longterm.jpg   Selling Options on Futures?-sugar150612.jpg  
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  #164 (permalink)
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thanks for this thread. use options on equitys, not much on futures

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  #165 (permalink)
Market Wizard
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I had an account at Liberty Trading from Feb 2009 to Dec 2011. Their FCM was PFG.

I left because Liberty was losing money and they charged too much for their services. I was also worried about Jefferies, PFG's clearinghouse. They had a lot of sovereign debt.

Little did I know that PFG was my biggest worry.

Thank goodness that they didn't find out about the fraud until I left.

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  #166 (permalink)
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ron99 View Post
I had an account at Liberty Trading from Feb 2009 to Dec 2011. Their FCM was PFG.

I left because Liberty was losing money and they charged too much for their services. I was also worried about Jefferies, PFG's clearinghouse. They had a lot of sovereign debt.

Little did I know that PFG was my biggest worry.

Thank goodness that they didn't find out about the fraud until I left.

Good to hear you got out in time. PFGBest had a lot of ag futures business according to the news. I recall in the CD-video Liberty founder and ceo, James Cordier said they were something like a 25 million fund. I wonder how much of their fund was tied up in PFG..

update:

uhoh, just saw this article:

"Law Firm Investigating Liberty Trading Group"
http://placeandhanley.com/blog/securities-investigations/law-firm-investigating-...regrine-financial-group/


Last edited by Cloudy; July 26th, 2012 at 02:18 PM.
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  #167 (permalink)
Market Wizard
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Quoting 
A Fort Lauderdale-based securities lawyer, Darren Blum, said a client from Texas fears he may have lost at least $700,000 that he invested with Liberty Trading because of the Peregrine scandal.

I have Liberty Trading's Disclosure Doc from Dec 2010 when he became a CTA again. It said all new clients had to use PFG as their FCM.

It says he had 245 clients and was trading $53 million then.

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  #168 (permalink)
Market Wizard
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Posted Apr 17,2012.

Its Magic View Post
I previously mentioned that I bought my first option in the silver market. You asked what lead me to that purchase.....it is one of the financial astrologers that I am currently testing out right now that has predicted $42.00 silver by the end of May....so we shall see!

I just wanted to point out that the financial astrologer was wrong.

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  #169 (permalink)
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Ron,
How has your account been doing this year? I am down overall due to a lack of discipline on my part and staying in loosing trades too long instead of cutting my loses and moving on.

Raven

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  #170 (permalink)
Market Wizard
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Actually I am having a very good year.

Counting only positions put on in 2012 but not currently open

I made 13 trades for 410 contracts to buy options. Lost 60k (I was very profitable on these last year)
I made 15 trades for 128 contracts to put on future spreads. Lost 4k.
I made 62 trades for 386 contracts to buy or sell futures. Made 149k.
I made 136 trades for 1,621 contracts to sell options. Made 52k. Net $31.85 per contract.

Of the 136 trades to sell options, 135 of them I rode to expiration and they ended at zero premium. Full profit. The only loser (20 contracts Aug LH 86 put) I bailed at a 5k loss, but if I had rode it to expiration, it too would have ended at zero.

The vast majority of short options were sold at a delta of 0.0100 or less. The LH loser trade was done because of a seasonal trend that went against me at first but then followed the seasonal. It was a far higher delta.

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