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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:570,062 / 5,734
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Selling Options on Futures?

Old July 17th, 2013, 05:35 AM   #1811 (permalink)
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Current margin in OEX accounts

Hi guys,

I opened my options express account this morning to find I had no margin requirements on my open positions and had full buying power. I have sold some coffee and Aussie dollar options so I definitely should have reduced buying power. Has anyone else seen this today?

Regards,

Bakes

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Old July 17th, 2013, 07:43 AM   #1812 (permalink)
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Bakes View Post
Hi guys,

I opened my options express account this morning to find I had no margin requirements on my open positions and had full buying power. I have sold some coffee and Aussie dollar options so I definitely should have reduced buying power. Has anyone else seen this today?

Regards,

Bakes

No problem here - mine looks about right Bakes.

Chris

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Old July 17th, 2013, 09:07 AM   #1813 (permalink)
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Bakes View Post
Hi guys,

I opened my options express account this morning to find I had no margin requirements on my open positions and had full buying power. I have sold some coffee and Aussie dollar options so I definitely should have reduced buying power. Has anyone else seen this today?

Regards,

Bakes

I'm looking normal. I'm speaking about my account, as for myself...that's a totally different subject matter...

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Old July 17th, 2013, 11:03 AM   #1814 (permalink)
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Bakes View Post
Hi guys,

I opened my options express account this morning to find I had no margin requirements on my open positions and had full buying power. I have sold some coffee and Aussie dollar options so I definitely should have reduced buying power. Has anyone else seen this today?

Regards,

Bakes

Sometimes if you refresh the page the correct buying power will show up after the refresh.

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Old July 17th, 2013, 11:05 AM   #1815 (permalink)
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Trade Alert!

There are bids in Sep coffee calls which are only 23 DTE. For example 200s are bid 0.05.

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Old July 17th, 2013, 12:25 PM   #1816 (permalink)
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A Bit Of Sharing

I thought I'd share with you my current open positions.

11 positions, 8 profitable, 1 breakeven and 2 current losers (by 1 tick each)

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



Thanks to Ron for pointing out those KCU200 calls. Sold a few of those today.


My general goal is to have 7 positions/instruments open at one time, each using about 15% of equity for margin. I find it pretty hard to do.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread

Last edited by kevinkdog; July 17th, 2013 at 12:31 PM.
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Old July 17th, 2013, 01:22 PM   #1817 (permalink)
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Fill Size Strategy

General question I'm throwing out to all the readers of this thread: what is your fill size strategy?

When you see some bids at a price you like on the strikes you are looking at, do you put your full size on in one trade, and do you split your size and try to get your fill over multiple trades?

So for example: you see a bid size of 3 and you wanted to sell 30 options. Do you put an ask in at size 30 or try with 10? Presumably if you get filled you put in another 10 at the ask? Repeat until your desired size is filled?

I've tried both but not sure which works better!

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Old July 17th, 2013, 01:38 PM   #1818 (permalink)
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Physicsman View Post
General question I'm throwing out to all the readers of this thread: what is your fill size strategy?

When you see some bids at a price you like on the strikes you are looking at, do you put your full size on in one trade, and do you split your size and try to get your fill over multiple trades?

So for example: you see a bid size of 3 and you wanted to sell 30 options. Do you put an ask in at size 30 or try with 10? Presumably if you get filled you put in another 10 at the ask? Repeat until your desired size is filled?

I've tried both but not sure which works better!

It depends. Some commodities if you put a large quantity on your order somebody will place an order ahead of you in price. At OEC I can do Iceberg orders if necessary.

The risk of not placing the order for your full quantity is that someone else places a order at the price and takes all of the available bids and there aren't anymore bid at that price.

But most of the time I just place the order for the full quantity. Especially if you are hitting a bid that is already there. You never know if the bid is an iceberg order. I have seen a lot of those in coffee lately.

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Old July 17th, 2013, 04:54 PM   #1819 (permalink)
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ron99 View Post
It depends. Some commodities if you put a large quantity on your order somebody will place an order ahead of you in price. At OEC I can do Iceberg orders if necessary.

The risk of not placing the order for your full quantity is that someone else places a order at the price and takes all of the available bids and there aren't anymore bid at that price.

But most of the time I just place the order for the full quantity. Especially if you are hitting a bid that is already there. You never know if the bid is an iceberg order. I have seen a lot of those in coffee lately.

Appreciate your insight Ron! :-)

I rarely hit the bid, but instead try to work an order. I place an order inside the bid/ask spread to become the new top of book on the ask and then work it down incrementally. For example: 5 bid at 10 ask. I'll put in an order at 9 then work it down towards 5. It was on this working an order that I wanted people's insight as to the size I show.

I shall experiment some more with always putting in my full size and see how it performs. Thanks again!

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Old July 17th, 2013, 06:00 PM   #1820 (permalink)
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Physicsman View Post
Appreciate your insight Ron! :-)

I rarely hit the bid, but instead try to work an order. I place an order inside the bid/ask spread to become the new top of book on the ask and then work it down incrementally. For example: 5 bid at 10 ask. I'll put in an order at 9 then work it down towards 5. It was on this working an order that I wanted people's insight as to the size I show.

I shall experiment some more with always putting in my full size and see how it performs. Thanks again!

Oh yeah if bid/ask is spread apart I usually try to work inbetween.

But like today on the KCU3 200C I just hit the bid for my full quantity because the price was fair and I wanted them before someone else got them. With that short DTE there aren't always a lot of bids. I suspect it was someone wanting out of shorts.

Now something further out in time you can play a little more with asks higher than the bids because those are probably somebody wanting to put on new positions. Like when we put on the KC 300 calls at 90+ DTE.

But using your example, if you put a full size order at 9, someone could sense you might come lower, because of your larger size order, and be ahead of you by bidding at 7 or 6. So in this example I would use the lower size at 9 and increase it when going to 8, 7, 6.

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