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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:570,021 / 5,734
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Selling Options on Futures?

Old August 21st, 2013, 03:09 PM   #1931 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
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enderqa View Post
ron99- where do you get your information on the OI totals on CL (or any futures) options? Thanks in advance.

For CME products http://www.cmegroup.com/tools-information/build-a-report.html?report=dailybulletin
Use the PG01 & PG02 reports for totals by commodity. Other reports lower on page for each contract.

For ICE https://www.theice.com/marketdata/reports/ReportCenter.shtml
Use Category-End of Day Report

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Old August 21st, 2013, 03:17 PM   #1932 (permalink)
Market Wizard
OH
 
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Key Passages From Fed Minutes - Real Time Economics - WSJ

NO CHANGE IN THE STANCE ON BOND BUYING: If economic conditions improved broadly as expected, the Committee would moderate the pace of its securities purchases later this year. And if economic conditions continued to develop broadly as anticipated, the Committee would reduce the pace of purchases in measured steps and conclude the purchase program around the middle of 2014.

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Old August 21st, 2013, 03:18 PM   #1933 (permalink)
Trading Apprentice
Uzbekistan
 
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Risk Management


Hi, Ron99

Was wondering if you could share more info with me about your risk management in your trading system.

1) Do you have a criteria with closing a lossing positions (margin, PL or smth else)?
2) Do you have a statistics of your average profit and losing position?

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Old August 21st, 2013, 03:51 PM   #1934 (permalink)
Market Wizard
OH
 
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Reno View Post
Hi, Ron99

Was wondering if you could share more info with me about your risk management in your trading system.

1) Do you have a criteria with closing a lossing positions (margin, PL or smth else)?
2) Do you have a statistics of your average profit and losing position?

1) I generally look at the excess margin I had when I put on the position. If that is used up then it is time to move on. But I don't strictly adhere to that. I look at why the position has moved and use that to determine whether to stay or leave it. But it takes years and years of experience trading to get to that point. I have been trading 15 years.

2) For 2012 Short options - 746 trades of 5,034 contracts = 150k net profit. A lot less contracts than 2011 but more profit. 99.7% winners.

2013 will not be as good. Lost big money on $200 2 day GC crash.
So far 730 trades of 8,211 contracts = 159k net profit. 95.5% winners.

Average net profit
2012 $30/contract.
2013 $19/contract.

2013 Partial Details
KC 2,638 contracts 74k net profit 100% winners all rode to expiration.
CL 1,646 contracts 67k net profit
ES 1,071 contracts 28k net profit

GC 185 contracts 57k net loss


Last edited by ron99; August 21st, 2013 at 04:08 PM.
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Old August 21st, 2013, 06:13 PM   #1935 (permalink)
Trading for Fun
Huntsville AL/USA
 
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Cotton crashing

Futures Edge on FIO
I have been burned by CT before. I am thankful I don't have any Puts at this time.

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Old August 21st, 2013, 06:58 PM   #1936 (permalink)
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Raven View Post
I have been burned by CT before. I am thankful I don't have any Puts at this time.

I have Dec 65 Puts to go with 112 Calls. I was getting worried about the calls, and 2 days later, now I'm more concerned about the Puts.

I still think both will expire worthless...

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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Old August 21st, 2013, 08:05 PM   #1937 (permalink)
Trading for Fun
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HALIFAX


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.


Robby, HALIFAX is a full service retail brokerage. There are more wholesale brokers in AUS that reflect the similar margin requirements for OX that Kevin posted. BBY and AXIOM are two alternatives. But as full service brokerages the commission are much higher than OX.

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Old August 21st, 2013, 08:07 PM   #1938 (permalink)
Trading for Fun
Reno, USA
 
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Thanks Ron for sharing your P/L;

Gives motivation for beginners like me that this method with risk managment works great. Unfortunately, I still try to daytrade and day in and day out get burned. Live and learn.

V

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Old August 21st, 2013, 08:10 PM   #1939 (permalink)
10 out of 10
Sacramento, CA
 
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kevinkdog View Post
I have Dec 65 Puts to go with 112 Calls. I was getting worried about the calls, and 2 days later, now I'm more concerned about the Puts.

I still think both will expire worthless...

I hope that is the case since you have those puts on. I can't believe what has happened in the last 2 days. Before that I was preparing to take a small loss on my 120 calls.

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Old August 21st, 2013, 09:33 PM   #1940 (permalink)
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eudamonia View Post
I hope that is the case since you have those puts on. I can't believe what has happened in the last 2 days. Before that I was preparing to take a small loss on my 120 calls.

Crazy, isn't it? Extreme price movements are definitely tempered with deep OTM options.

I'm OK with the puts for now, but if the underlying goes much lower, and my margin excess disappears, I'll just bail.

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