Selling Options on Futures? (Page 192) - Options on Futures | futures.io
futures.io futures trading
 

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures


Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,052 / 5,727
Last Reply:Yesterday (12:40 PM) Attachments:642

Welcome to futures.io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.


You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike
     

Reply
 642  
 
Thread Tools Search this Thread

Selling Options on Futures?

Old August 20th, 2013, 04:25 PM   #1911 (permalink)
Trading for Fun
Houston, Texas
 
Futures Experience: Advanced
Platform: Interactive Brokers, OptionsXpress
Broker/Data: Options Express
Favorite Futures: Options on Futures
 
MJ888's Avatar
 
Posts: 165 since Sep 2012
Thanks: 37 given, 123 received

Hello my fellow option sellers! I too have been looking at selling some CLZ13 calls at the 140, 145, 150 levels.

Reply With Quote
     

Old August 20th, 2013, 08:21 PM   #1912 (permalink)
Elite Member
NW Florida
 
Futures Experience: Intermediate
Platform: OX and TOS
Favorite Futures: Futures Options, Stocks
 
opts's Avatar
 
Posts: 233 since Aug 2012
Thanks: 29 given, 107 received


MJ888 View Post
Hello my fellow option sellers! I too have been looking at selling some CLZ13 calls at the 140, 145, 150 levels.

I'm holding the October 140's that have 28 DTE. Will look to sell Nov soon...

Reply With Quote
     

Old August 20th, 2013, 08:25 PM   #1913 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,194 since Jul 2012
Thanks: 1,004 given, 3,965 received



opts View Post
I'm holding the October 140's that have 28 DTE. Will look to sell Nov soon...

I must think differently. I've got October 78s... puts.

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

Old August 20th, 2013, 08:56 PM   #1914 (permalink)
Trading for Fun
Huntsville AL/USA
 
Futures Experience: Intermediate
Platform: optionsXpress
Favorite Futures: Options on Futures
 
Posts: 54 since May 2012
Thanks: 80 given, 26 received


kevinkdog View Post
I must think differently. I've got October 78s... puts.


opts View Post
I'm holding the October 140's that have 28 DTE. Will look to sell Nov soon...

Looks like you both made wise trades.

Reply With Quote
     
The following user says Thank You to Raven for this post:
     

Old August 21st, 2013, 02:54 AM   #1915 (permalink)
Trading for Fun
Brisbane, Queensland, Australia
 
Futures Experience: Intermediate
Platform: OX, Z360, Excel
Broker/Data: DeCarley
Favorite Futures: Futures and Future Options
 
Posts: 121 since Aug 2013
Thanks: 75 given, 96 received

The value of diversification in writing premium

Futures Edge on FIO
I am wondering if anyone here might wish to comment on the value of diversification in writing strangles. Monthly I write in CL. I work on a 1/3 of my capital for margin. Which would essential on my risk profile eliminate taking on another trade in a different commodity. Diversification may not just refer to a different commodity. It may refer to different time periods or seasonality. The goal of my question is to explore the value of diversifying from my monthly regular trade in CL. Is there room for a more balanced, risk diverse approach? What might such an approach consist of? Any input would be appreciated.

Reply With Quote
     

Old August 21st, 2013, 03:28 AM   #1916 (permalink)
Elite Member
desert CA
 
Futures Experience: Intermediate
Platform: NT7, TOS
Broker/Data: AMP/wCQG, TDA
Favorite Futures: CL,YM
 
Posts: 1,999 since Jul 2011
Thanks: 2,175 given, 1,501 received

It's not in the realm of futures, but you could try strangles on equities and indexes and risking some earnings plays looking for "implied volatility" "crush". Also can work on some futures ETF's such as gdx,slv, uso, etc. and generally find more liquidity in # options contracts available to work with. But finding good deals in the premium may be hard to come by and requires filtering and searching the option chains for good premium to sell as they often change month to month so a same symbol is hard to rely on for the same monthly trades.

except for maybe major indexes, i.e. Karen the Supertrader on SPX, NDX but extremely costly to trade.
http://www.youtube.com/watch?v=BquDGE9KxZQ


Last edited by Cloudy; August 21st, 2013 at 03:49 AM.
Reply With Quote
     
The following user says Thank You to Cloudy for this post:
     

Old August 21st, 2013, 03:51 AM   #1917 (permalink)
Trading Apprentice
Australia
 
Futures Experience: Intermediate
Platform: tradestation
Favorite Futures: commodities
 
Posts: 10 since Jul 2013
Thanks: 31 given, 1 received

Hi All,

I have an account with Halifax who seem to be more conservative than optionsxpress, I want to sell NOV CLX13 STRIKE 135 CALL @ .06 and there margin requirement is $1682.00.... With my bank of $70k / 5 = $14k I would allocate 5 different instruments then use a 3x margin cover which would be $14k /3 = $4666 of margin.

Initial Margin $1682... so that's $4666 / $1682 = 2 contracts..

Question is this to conservative?

Thanks for any feed back.

Reply With Quote
     

Old August 21st, 2013, 08:10 AM   #1918 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,194 since Jul 2012
Thanks: 1,004 given, 3,965 received


BlueRoo View Post
I am wondering if anyone here might wish to comment on the value of diversification in writing strangles. Monthly I write in CL. I work on a 1/3 of my capital for margin. Which would essential on my risk profile eliminate taking on another trade in a different commodity. Diversification may not just refer to a different commodity. It may refer to different time periods or seasonality. The goal of my question is to explore the value of diversifying from my monthly regular trade in CL. Is there room for a more balanced, risk diverse approach? What might such an approach consist of? Any input would be appreciated.

I am not usually writing strangles, so my situation might not apply. I allocate roughly 10-15% per instrument to achieve diversification. I do not consider different time periods in the same instrument to be more diversification.

Here 's an example of what I have right now. Note that I do have some correlated instruments, so what I am doing is not true diversification.

Maybe this will give you some food for thought.

Good Luck!

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

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
     
The following user says Thank You to kevinkdog for this post:
     

Old August 21st, 2013, 08:20 AM   #1919 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,194 since Jul 2012
Thanks: 1,004 given, 3,965 received


robby View Post
Hi All,

I have an account with Halifax who seem to be more conservative than optionsxpress, I want to sell NOV CLX13 STRIKE 135 CALL @ .06 and there margin requirement is $1682.00.... With my bank of $70k / 5 = $14k I would allocate 5 different instruments then use a 3x margin cover which would be $14k /3 = $4666 of margin.

Initial Margin $1682... so that's $4666 / $1682 = 2 contracts..

Question is this to conservative?

Thanks for any feed back.

That is a hefty margin requirement. Options Express is $242, compared to your $1682.

If you use Ron's 3x rule, your ROI is going to be very low - mine is just over 2.1%, yours would be 0.31% if I did the math right. Not worth doing in my opinion.

You might want to find a broker more open to option writing.

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

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
     
The following user says Thank You to kevinkdog for this post:
     

Old August 21st, 2013, 08:32 AM   #1920 (permalink)
13options.com
Gilbert, AZ / USA
 
Futures Experience: Advanced
Platform: ThinkorSwim, OX
Broker/Data: ThinkorSwim
Favorite Futures: RUT
 
Posts: 10 since Mar 2010
Thanks: 4 given, 4 received

First trade


Hey Everyone. Thanks for the amazing amount of information shared here, and I am reading with great intent. /CL 90p 125c active right now for NOV to observe the reaction while in my initial stages of learning how to read what fundamentals I need to learn.

Kevin
(Any questions specifically related to my website, please send me a private message only.)
"Obstacles are those frightful things you see when you take your eyes off your goal." -- Henry Ford
Reply With Quote
     

Reply



futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures > Selling Options on Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

NinjaTrader 8: Features and Enhancements, Tips and Tricks

Dec 6
 

Al Brooks: Stop Losing when a Good Trade goes Bad, Correcting Mistakes

Elite only
 

Trading Technologies: Algo Design Lab hands-on

Dec 13
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Crude Oil (CL) futures inverse pairing options Big Mike Commodities Futures Trading 8 December 12th, 2013 12:00 PM
Recommend futures, options Broker? sam1197 Brokers and Data Feeds 17 March 27th, 2013 01:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 05:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 01:40 PM
Zen-Fire Futures options tici88 Brokers and Data Feeds 1 July 30th, 2011 10:16 AM


All times are GMT -4. The time now is 05:44 PM.

Copyright © 2016 by futures.io. All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
 
no new posts

Page generated 2016-12-03 in 0.14 seconds with 20 queries on phoenix via your IP 54.211.5.239