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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,720 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old September 4th, 2013, 01:14 PM   #2041 (permalink)
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There is a lot of truth in that article Ron. I would trade it accordingly but would keep my position smaller than usual just so I would be able to deal with the volatility. During the next week or so before the strike on Syria I will look to sell some CLZ13 150C or 160C on a rally. That's my two cents worth on CL options..................Thoughts anyone?

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Old September 5th, 2013, 09:09 AM   #2042 (permalink)
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ron99 View Post
Trade Alert?

Oct HO 3.95 calls settled yesterday at .0001. They are bid 97 times at .0010. 27 DTE. Futures are down .0089.

I don't know the margin because it has no OI so SPAN does not calculate a margin. We will have the margin amount tonight because it has traded 3 times.

Is it worth the risk to make $42 - fees? You will make most of that tonight if it settles at .0001.

Note to OX traders. If a contract has no OI you have to call the order in to their trading desk. You can't do it online.


These options are now .0005 bid, with 20 days to expiration. Based on last night's margin requirement, I get 14% monthly ROI after commissions. Theoretical price is .0001.

Not a good of a deal as last week, but still a pretty enticing return...

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Old September 5th, 2013, 10:26 AM   #2043 (permalink)
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kevinkdog View Post
These options are now .0005 bid, with 20 days to expiration. Based on last night's margin requirement, I get 14% monthly ROI after commissions. Theoretical price is .0001.

Not a good of a deal as last week, but still a pretty enticing return...

Thank you.

Kevin, did you notice how there were too high bids for strikes 3.54 to 3.90. I suspect a software program is confused by the .0005 trade in the 3.95s and putting in those too high bids.

I traded one of them and the rest disappeared.

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Old September 5th, 2013, 10:37 AM   #2044 (permalink)
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ron99 View Post
Thank you.

Kevin, did you notice how there were too high bids for strikes 3.54 to 3.90. I suspect a software program is confused by the .0005 trade in the 3.95s and putting in those too high bids.

I traded one of them and the rest disappeared.


Yes, I did notice that. I wasn't sure what was going on, but I did notice around 3.54 that the bids were above theoretical price, which was reversal from lower prices. That made me think a good deal was to be had. I only picked up 20 of them, though...

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Old September 5th, 2013, 10:40 AM   #2045 (permalink)
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I learned my lesson from last time and made room for these that had a better ROI than what I had on.

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Old September 6th, 2013, 03:12 PM   #2046 (permalink)
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.HO trade

Hi,
finally catch up to this point. ;-)

anyway, I just check from TOS, there is 200 OI for the HO Oct. 3.90, no volume at all, or any volume on any strikes. when I try to put in a trade, it come up as not tradable. Did you put it through OX?
The only tradable stuff from TOS is ES NQ CL CG SB, NG. Not as many as Kevin listed.

Thx!

Wes


Last edited by kingfish88; September 6th, 2013 at 03:19 PM.
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Old September 6th, 2013, 03:29 PM   #2047 (permalink)
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kingfish88 View Post
Hi,
finally catch up to this point. ;-)

anyway, I just check from TOS, there is 200 OI for the HO Oct. 3.90, no volume at all, or any volume on any strikes. when I try to put in a trade, it come up as not tradable. Did you put it through OX?
The only tradable stuff from TOS is ES NQ CL CG SB, NG. Not as many as Kevin listed.

Thx!

Wes

OX trades the vast majority of commodities. TOS is not very option selling friendly. As you found out not all commodities tradeable.

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Old September 6th, 2013, 03:44 PM   #2048 (permalink)
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ron99 View Post
OX trades the vast majority of commodities. TOS is not very option selling friendly. As you found out not all commodities tradeable.

Do you still have to call OX to make these trades? I show 200 OI on the 3.95 but nothing on the bid.

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Old September 6th, 2013, 04:02 PM   #2049 (permalink)
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OEX says their Trade Calculator will be fixed by the end of the month, September 30, 2013.

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 September 6th, 2013, 04:16 PM   #2050 (permalink)
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eudamonia View Post
Do you still have to call OX to make these trades? I show 200 OI on the 3.95 but nothing on the bid.

No. Only when OI is zero.

Bids right now are gone for 3.95. Looks like somebody wanted 200 and are done for now. Somebody is offering at .0004 and not getting them.

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