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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,610 / 5,734
Last Reply:8 Hours Ago (01:01 AM) Attachments:642

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Selling Options on Futures?

Old September 17th, 2013, 07:47 PM   #2091 (permalink)
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ron99 View Post
turch, this part of the letter is what concerns me.
You said they were only 7 DTE. They forgot to program the software to look at DTE.

Next time I suggest that everyone make sure they talk to Pandy. Because common sense would say that 7 DTE is not "expiration dates are still far out".

I sincerely hope OX does not go over the edge like they did at FC Stone. I had an account there that was only using 16% to cover margin. They told me it was too risky and I had to trade out of positions. As usual I was far OTM. I closed that account and all other accounts at FC Stone.

Raven, if you don't mind, can you tell us what positions and quantity of each that you had to trigger the concentration additional margin?

Raven said he had 1 DTE, even worse!
By the way, thanks for starting this thread Ron, you are a champion!

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Old September 17th, 2013, 07:57 PM   #2092 (permalink)
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kevinkdog View Post
300% for the year is pretty awesome. Is that just from selling options? If so, are you doing it differently than Ron's method?

Yes, just from selling options. Mostly CL, KC, (GC no longer). Keep in mind I only have a tiny account.
I read Cordiers book a few years ago. My methods are pretty similar to Ron's only they have been probably a little more aggressive. Still around $30 min. from strike.I would often buy to close once I got a decent ROI instead of waiting to expiration.
When I have a larger account like Ron, I will be less aggressive and let them all run to expiration.

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Old September 17th, 2013, 08:02 PM   #2093 (permalink)
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turch View Post
Yes, just from selling options. Mostly CL, KC, (GC no longer). Keep in mind I only have a tiny account.
I read Cordiers book a few years ago. My methods are pretty similar to Ron's only they have been probably a little more aggressive. Still around $30 min. from strike.I would often buy to close once I got a decent ROI instead of waiting to expiration.
When I have a larger account like Ron, I will be less aggressive and let them all run to expiration.

You must be doing something right! Could you give an example or 2 of recent trades? I'm very curious, because even if I allowed $0 excess margin, and was fully margined at all times, I could not get near 300%.

With the 2x excess Ron suggests, I usually find options of 2-4% monthly ROI. You must be find some much better ones!

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 17th, 2013, 10:23 PM   #2094 (permalink)
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kevinkdog View Post
You must be doing something right! Could you give an example or 2 of recent trades? I'm very curious, because even if I allowed $0 excess margin, and was fully margined at all times, I could not get near 300%.

With the 2x excess Ron suggests, I usually find options of 2-4% monthly ROI. You must be find some much better ones!

8/8/13 STO 10 x KCZ32200C @ .19
8/9 STO 25 x KCZ32200C @ .14
8/15 STO 15 x CLV3130C @ .04
8/8 STO 40 CLV375P @ .02

9/10 STO 60 CLX375P @ .02 "F C margin call"
9/11 BTC 60 CLX75P @ .02 Goodbye $600 commission/fees and $900 profit!

9/17 BTC 35 x KCZ32200C @ .01
9/17 40 x CLV375P Expired OTM
9/17 15 x CLV3130C Expired OTM

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Old September 17th, 2013, 11:04 PM   #2095 (permalink)
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Futures Edge on FIO

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turch View Post
8/8/13 STO 10 x KCZ32200C @ .19
8/9 STO 25 x KCZ32200C @ .14
8/15 STO 15 x CLV3130C @ .04
8/8 STO 40 CLV375P @ .02

9/10 STO 60 CLX375P @ .02 "F C margin call"
9/11 BTC 60 CLX75P @ .02 Goodbye $600 commission/fees and $900 profit!

9/17 BTC 35 x KCZ32200C @ .01
9/17 40 x CLV375P Expired OTM
9/17 15 x CLV3130C Expired OTM

Thanks for sharing. It is too bad you had to liquidate those CLXs. I still can't figure how those help you get 300% (even with no excess, monthly ROI was approx 15%, or 180% per year).

But keep doing what you are doing (other than the concentration margin call, of course)...

Cheers!

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 17th, 2013, 11:17 PM   #2096 (permalink)
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Based on this "Concentration Margin call" business, does anyone have an idea of how to estimate when you might get it?

I'm guessing: margin required for open positions in one instrument / total equity > XXXXX

or margin required for open positions in one instrument - unused margin > YYYY


maybe to related instruments would get lumped in (like crude with heating oil and unleaded gas).


I personally have no problems with rules like this, if I know upfront what the rule is...

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 18th, 2013, 12:58 AM   #2097 (permalink)
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kevinkdog View Post
Based on this "Concentration Margin call" business, does anyone have an idea of how to estimate when you might get it?

I'm guessing: margin required for open positions in one instrument / total equity > XXXXX

or margin required for open positions in one instrument - unused margin > YYYY


maybe to related instruments would get lumped in (like crude with heating oil and unleaded gas).


I personally have no problems with rules like this, if I know upfront what the rule is...

Exactly!
I asked Robert Pandy that question and he said no, but I could call him if I wanted to check.
I asked if there was a button on the screen to estimate, his answer was no and he did not know why either.
Is it time to look for a new broker??

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Old September 18th, 2013, 09:03 AM   #2098 (permalink)
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eudamonia View Post

Zaner360 which is a very nice platform considering there is no additional monthly fee. I only wish they had a mobile version.

Eudamonia, if you are not aware, using the Zaner 360 like myself, you can use the 'iBroker' App for mobility. I have used it lightly when on the move on iPad before it's pretty good. iBroker is the OEC mobile App available to DeCarley clients, their is an additional small fee for executing on it.

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Old September 19th, 2013, 11:01 AM   #2099 (permalink)
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Hi

I am new to this forum and to this thread, so haven't read much in it now. As the thread title says: Selling options on futures, that sounds fine and interesting. Doe's the thread show some where or explain different systems on the given subject in a manner like far away from expiry selling or short time selling or selling on events? If so, then I have to read the whole thread and if not, what about those mentioned subjects?

Take care / Stan Dan

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Old September 19th, 2013, 11:05 AM   #2100 (permalink)
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Stan Dan View Post
Hi

I am new to this forum and to this thread, so haven't read much in it now. As the thread title says: Selling options on futures, that sounds fine and interesting. Doe's the thread show some where or explain different systems on the given subject in a manner like far away from expiry selling or short time selling or selling on events? If so, then I have to read the whole thread and if not, what about those mentioned subjects?

Take care / Stan Dan

Read the second post. It is a summary of most of info contained in this thread. Most of the discussion is on selling deep out of the money options.

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