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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,198 / 5,728
Last Reply:December 6th, 2016 (05:26 PM) Attachments:642

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Selling Options on Futures?

Old June 26th, 2013, 12:52 PM   #1741 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
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eudamonia View Post
Unfortunately it doesn't seem like there are a lot of other good choices for futures option sellers.

On a different note here are the trades I'm in and considering at the moment:

Trades currently in:

Cotton September 110 calls
Cotton December 120 calls
Crude Oil August 65 and 70 puts
Crude Oil September 70 puts
ES July 1300 puts
Coffee September 300 calls

Trades under consideration:

Natural Gas October 5.5 calls - waiting for us to pull back a bit and see how the weather looks in the next few weeks. Good seasonal tendency for NG to trend down for the next few months. Supply is strong, demand currently weak but could be a factor during the summer cooling demand months.

Live Cattle August 108 puts - currently supply is the tightest in 12 years with many livestock owners having liquidated their herds in the past 6 months due to increased feed costs (particularly corn) and inflexible elasticity on the demand curve. Typically June is the low for seasonal demand which picks up considerably during the summer months.

ES August 1250 puts - now that QE tapering fears have hit the market I'm looking for the overreaction. We may have already seen this with the test of the 1550 area. 1500 is a more important number and would ideally like to see us test this level.

Other trades that are bit further out might be selling volatility in the grains as we get into the harvest season.

Interesting. I have on a lot of the same ones you do.
Crude Oil August 70 puts with 130 calls
Crude Oil September 70 puts with 130 calls (great ROI)
ES July 1300 puts Also 1250, 1350, 1400
Coffee September 300 calls Also 230s.

I also have Sep NG calls 520, 530 with Sep 300 puts (these are giving me some grief). Also Oct NG 600, 700 calls (put on a while ago). Going to add more calls. Coal keeps NG prices from getting too high.
A few RB & HO calls. Aug RB 2.25 puts are giving me grief but they should be ok.
ES Aug 1300s. Going to add more Aug puts.

108 LC puts are $20

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Old June 26th, 2013, 01:05 PM   #1742 (permalink)
10 out of 10
Sacramento, CA
 
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ron99 View Post
Also Oct NG 600, 700 calls (put on a while ago). 108 LC puts are $20

Wow wish I'd had the forethought to grab October NG awhile ago at those prices.

Yeah, the Cattle is a weird market. Probably a bit too thin. Trying to think outside the box so I don't have just Energy and Indices.

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Old June 27th, 2013, 09:43 AM   #1743 (permalink)
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NW Florida
 
Futures Experience: Intermediate
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eudamonia View Post
Unfortunately it doesn't seem like there are a lot of other good choices for futures option sellers.

On a different note here are the trades I'm in and considering at the moment:

Trades currently in:

Cotton September 110 calls
Cotton December 120 calls
Crude Oil August 65 and 70 puts
Crude Oil September 70 puts
ES July 1300 puts
Coffee September 300 calls

Trades under consideration:

Natural Gas October 5.5 calls - waiting for us to pull back a bit and see how the weather looks in the next few weeks. Good seasonal tendency for NG to trend down for the next few months. Supply is strong, demand currently weak but could be a factor during the summer cooling demand months.

Live Cattle August 108 puts - currently supply is the tightest in 12 years with many livestock owners having liquidated their herds in the past 6 months due to increased feed costs (particularly corn) and inflexible elasticity on the demand curve. Typically June is the low for seasonal demand which picks up considerably during the summer months.

ES August 1250 puts - now that QE tapering fears have hit the market I'm looking for the overreaction. We may have already seen this with the test of the 1550 area. 1500 is a more important number and would ideally like to see us test this level.

Other trades that are bit further out might be selling volatility in the grains as we get into the harvest season.


I sold the ES 1380's for July Week 1 last week for .65 thinking that the selloff was going to slow down a little; about 4% ROI in about 2 weeks. The volatility spike has increased the premiums on the ES so you might be able to sell with less time remaining. Will look to reenter next week.

Short the Aug CL opts also.

CL is a great market to sell puts....

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Old June 27th, 2013, 02:32 PM   #1744 (permalink)
Market Wizard
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The holiday schedule is all mixed up for next week. Some things are closing early on July 3rd. Some aren't. Some electronics are open July 4th some aren't. Some things open July 4th evening some don't open until July 5th am.
These are all CT.
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Old June 27th, 2013, 08:04 PM   #1745 (permalink)
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Futures Edge on FIO

Are you a NinjaTrader user?

 
Unemployment rate and non-farm payrolls out next Friday. Will wait for those numbers before selling ES options or index credit spreads.

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Old June 28th, 2013, 03:45 AM   #1746 (permalink)
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Ongoing Broker Dramas

Guys, need some help with alternatives.

Due to the ongoing OX dramas with not only their Trade Calc but customer service, I'm looking for alternatives in some areas. It makes it even worse in Australia as our choices are very limited.
I need to stay with them for my naked options (purely for margin), but am looking at IB for the spreads.

Their demo platform doesn't seem to give me any margin info and wondering if any of you IB users can provide me with a margin requirement for a spread.

Lets say for:

Sell -5 (CLU380P) 0.14 ($700.00)
Buy 5 (CLU378P) 0.10 $500.00
Total Cost ($200.00)
Initial Requirement $1,046.65
Maintenance Requirement $951.50
Total Requirements $1,046.65

Also any feedback on the TWS platform, advantages or disadvantages you have found.

Cheers

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Old June 28th, 2013, 11:16 AM   #1747 (permalink)
Market Wizard
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This post was made Feb 20th when GC was 1600. I wish I did buy some puts.

vmaiya73 View Post
I know this is a forum on selling options on futures but with the breakdown in GOLD is anybody considering buying some puts ?

On that day Oct 1200 GC puts were 2.00. Now they are 43.00.

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Old June 28th, 2013, 11:36 AM   #1748 (permalink)
Trading for Fun
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They say it only takes one trade to make or break someones year; with that being said Im still waiting for my big one of the year.

LOL

V

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Old June 28th, 2013, 12:59 PM   #1749 (permalink)
Trading for Fun
Lancashire UK
 
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Platform: Tradestation, Interactive Brokers, OX
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crez View Post
Guys, need some help with alternatives.

Due to the ongoing OX dramas with not only their Trade Calc but customer service, I'm looking for alternatives in some areas. It makes it even worse in Australia as our choices are very limited.
I need to stay with them for my naked options (purely for margin), but am looking at IB for the spreads.

Their demo platform doesn't seem to give me any margin info and wondering if any of you IB users can provide me with a margin requirement for a spread.

Lets say for:

Sell -5 (CLU380P) 0.14 ($700.00)
Buy 5 (CLU378P) 0.10 $500.00
Total Cost ($200.00)
Initial Requirement $1,046.65
Maintenance Requirement $951.50
Total Requirements $1,046.65

Also any feedback on the TWS platform, advantages or disadvantages you have found.

Cheers

This is from my SIM account which is very nearly flat at the moment. IM is GBP1283, so that's about USD1950.
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I've used IB for many years, so I'm used to the TWS - it does pretty much everything I need and the platform is stable. A lot of people complain about IB's customer service, but I've never had any real problems. The main issue is the margin for Futures Options, which is why I've got an account at OX now.


Chris

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Old June 28th, 2013, 10:24 PM   #1750 (permalink)
Elite Member
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crez View Post
Guys, need some help with alternatives.

Due to the ongoing OX dramas with not only their Trade Calc but customer service, I'm looking for alternatives in some areas. It makes it even worse in Australia as our choices are very limited.
I need to stay with them for my naked options (purely for margin), but am looking at IB for the spreads.

Their demo platform doesn't seem to give me any margin info and wondering if any of you IB users can provide me with a margin requirement for a spread.

Lets say for:

Sell -5 (CLU380P) 0.14 ($700.00)
Buy 5 (CLU378P) 0.10 $500.00
Total Cost ($200.00)
Initial Requirement $1,046.65
Maintenance Requirement $951.50
Total Requirements $1,046.65

Also any feedback on the TWS platform, advantages or disadvantages you have found.

Cheers

Hi Crez,

I have an account with macquarie that I trade for my Super. I also have an OX account. The macquarie platform is good for pricing but does not give margin and I email or phone my orders in. I have to admit I didn't really like this when I first started but I know use OX for my rough margin requirements. You can trade straight futures and spreads from their platform. If you go with them you will get an account manager and I have found them to be surprisingly very good.

I don't think they have anyone selling options with them. When I discussed this with my AM and margin requirements we discussed what my plan was and that I was keeping extra margin set aside and he was happy with that. He said if any position got ugly he would give me a call but wouldn't go and close a position without discussing with me first and giving me time to react.

Regards,

Bakes

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