Selling Options on Futures? (Page 22) - 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:567,812 / 5,727
Last Reply:7 Hours Ago (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 September 1st, 2012, 01:06 PM   #211 (permalink)
Elite Member
Victoria, BC, Canada
 
Futures Experience: Intermediate
Platform: Tradestation, Multicharts, Interactive Brokers, OptionsXpress
Favorite Futures: Futures
 
Mobiius's Avatar
 
Posts: 27 since Nov 2011
Thanks: 4 given, 25 received


opts View Post
Mobius:

OX is the only account I have. I don't plan on trading futures contracts, I only trade the options so I can't comment on the contracts. However, there have been no issues trading the options.

One thing I should mention is that their smart phone trading ap does not have the ability to receive futures quotes. So if you plan on trading through your phone you must do that through the web access ability of your phone, which is a little quirky also. If you have an option position you can see the current quote in your watch-list and you can close the position in the trading ap. They are working on the quotes part of the ap. They do have an ipad ap as well.

My FOREX trading is done through FXDD and Metatrader.

Hey Opt, if you need a remote access then try the 'log me in' program (about $12USD/month), this is loaded on to your computer you need to remotely access, then you get the 'logmein Ignition' app on your phone and you can access your computer so you can get the full power of your trading software. The only drawback obviously is the small screen size, but it's never been an issue for me. I've never been fond of proprietary broker software and go through a secondary login system. I'd rather use our own full size version on a small screen and I have access to all our software and brokers.

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

Old September 1st, 2012, 01:41 PM   #212 (permalink)
Elite Member
Milton Keynes UK
 
Futures Experience: Intermediate
Platform: Investor/RT, Sierra Chart
Favorite Futures: Futures Options, CL
 
Posts: 156 since Jun 2009
Thanks: 74 given, 115 received


Harvard16 View Post
Hi Brit,

I'd like to ask you something regarding IB margin on short futures options, you mentioned above they charge full futures margin, are you saying they don't use Span margin?reason I ask is I'm looking to move an account from Optionsxpress to IB, as a net option seller the commissions are ouch particularly for trade adjustment, when done on ratio writes, it gets very expensive. I have my main account with deep discount, and I'm very happy there with their 50c commish plus exch. fees and service, but following pfgbest and mfg, don't want to put all in one basket.

Obviously span margin is key, so need to make sure on that.

Thanks

Harvard16

I don't think it is Span based but not sure as I have nothing else to compare it to.
Please check the IB web page for their futures margins here........

http://www.interactivebrokers.com/en/p.php?f=margin&ib_entity=uk

Obviously this is futures and the options are based on that and will vary with time to expiry, strike distance away etc but will not be higher than the futures margin.

If you want a specific example let me know and I can tell you what it is.

Edit: I forgot to add, as it is a UK pension account they charge me 150% margin.

Hope this helps
Brit

Reply With Quote
     
The following user says Thank You to britkid99 for this post:
     

Old September 2nd, 2012, 03:54 AM   #213 (permalink)
Trading Apprentice
Singapore
 
Futures Experience: Intermediate
Platform: Rtrader,Zaner 360
Broker/Data: Deep Discount Trading/Rithmic,DeCarley/Gain
Favorite Futures: Future Options
 
Posts: 35 since Sep 2012
Thanks: 46 given, 49 received


Thanks Brit, that is helpful, I have been digging further and can see IB is definately SPAN+++, no good for me, I'll can that one.

Reply With Quote
     

Old September 2nd, 2012, 07:56 PM   #214 (permalink)
Elite Member
Victoria, BC, Canada
 
Futures Experience: Intermediate
Platform: Tradestation, Multicharts, Interactive Brokers, OptionsXpress
Favorite Futures: Futures
 
Mobiius's Avatar
 
Posts: 27 since Nov 2011
Thanks: 4 given, 25 received

Ron - I believe you have answered some of these questions so I apologize for you repeating them.

I can't seem to find the details of the commissions you pay on OX. I seem to remember you mentioning you pay only $2.99 per contract but maybe my memory is faulty? OX's commissions start @ $12.99 and only go to $5.99 if you do 1000+ a month. I'd be doing only up to 30 on the average a month and possibly up to 100 in the future. But nowhere near 1000+.

We'd like to get our commissions as low as possible with OX. Any suggestions?

Also, does OX charge the full commission on opening and then full again if you closed? Or do they only charge you half commission and they don't charge you the other half if you let it expire?

Thanks.

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

Old September 3rd, 2012, 09:59 AM   #215 (permalink)
Trading Apprentice
Singapore
 
Futures Experience: Intermediate
Platform: Rtrader,Zaner 360
Broker/Data: Deep Discount Trading/Rithmic,DeCarley/Gain
Favorite Futures: Future Options
 
Posts: 35 since Sep 2012
Thanks: 46 given, 49 received

Futures Edge on FIO
Hi Mobiius,

I know you directed this to Ron , but he is probably enjoying his labour day holiday today, as a long time OX client I can confirm for the volume you mentioned the perside rate is $12.99 + the typical exchange fees. Feel since Charles Schwab there is less flexibility in their rates, but as they say if you don't ask you don't get, if you have a sizable account this may have some sway.

Commissions are charged per side individually at time of sale and purchase, and there is no commission or fees if you let the short option expire out of the money. (with the rates they charge it would be cheaky if they did).

Reply With Quote
     
The following user says Thank You to Harvard16 for this post:
     

Old September 3rd, 2012, 05:13 PM   #216 (permalink)
Elite Member
Danville, California
 
Futures Experience: Intermediate
Platform: Ninja Trader
Favorite Futures: ES Currency furtures
 
Posts: 72 since Sep 2010
Thanks: 593 given, 19 received


ron99 View Post
I have been selling options on futures for years. But it is rare to find others doing it. I was wondering if there are others here doing it.

I have been doing it for 5 years. Learned it from James Cordier's book.

I have sold energy, grain, softs and metal options. Far out of the money. Usually less than 90 days from expiration.

I've always been interested, but never pursued it.
Has anyone heard or has experince with
Larry gaines options on open ?

http://www.optionsontheopen.com/


Last edited by fasttraxs; September 3rd, 2012 at 05:20 PM.
Reply With Quote
     

Old September 3rd, 2012, 06:38 PM   #217 (permalink)
Elite Member
Mexico city
 
Futures Experience: Beginner
Platform: Sierra Charts
Broker/Data: Mirus Futures/Zen Fire
Favorite Futures: EUR/USD, Gold
 
AMGM's Avatar
 
Posts: 4 since Apr 2011
Thanks: 1 given, 1 received

SEC Charges optionsXpress

Not as bad as MF Global or PFG, but I'm starting to worry about the integrity of most brokers. I think more cases like these will materialize in the future, as the SEC is now taking a closer look.

SEC Charges optionsXpress and Five Individuals Involved in Abusive Naked Short Selling Scheme
FOR IMMEDIATE RELEASE
2012-66

Washington, D.C., April 16, 2012 – The Securities and Exchange Commission today charged an online brokerage and clearing agency specializing in options and futures as well as four officials at the firm and a customer involved in an abusive naked short selling scheme.

The SEC’s Division of Enforcement alleges that Chicago-based optionsXpress failed to satisfy its close-out obligations under Regulation SHO by repeatedly engaging in a series of sham “reset” transactions designed to give the illusion that the firm had purchased securities of like kind and quantity. The firm and customer Jonathan I. Feldman engaged in these sham reset transactions in a number of securities, resulting in continuous failures to deliver. Regulation SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3). If no delivery is made by that time, the firm must purchase or borrow the securities to close out the failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4).

The former chief financial officer at optionsXpress – Thomas E. Stern of Chicago – was named in the SEC’s administrative proceeding along with optionsXpress and Feldman. Three other optionsXpress officials – head of trading and customer service Peter J. Bottini and compliance officers Phillip J. Hoeh and Kevin E. Strine – were named in a separate administrative proceeding and settled the charges against them for their roles in the scheme.

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

Old September 3rd, 2012, 11:26 PM   #218 (permalink)
Elite Member
Victoria, BC, Canada
 
Futures Experience: Intermediate
Platform: Tradestation, Multicharts, Interactive Brokers, OptionsXpress
Favorite Futures: Futures
 
Mobiius's Avatar
 
Posts: 27 since Nov 2011
Thanks: 4 given, 25 received


AMGM View Post
Not as bad as MF Global or PFG, but I'm starting to worry about the integrity of most brokers. I think more cases like these will materialize in the future, as the SEC is now taking a closer look.

SEC Charges optionsXpress and Five Individuals Involved in Abusive Naked Short Selling Scheme
FOR IMMEDIATE RELEASE
2012-66

Washington, D.C., April 16, 2012 – The Securities and Exchange Commission today charged an online brokerage and clearing agency specializing in options and futures as well as four officials at the firm and a customer involved in an abusive naked short selling scheme.

The SEC’s Division of Enforcement alleges that Chicago-based optionsXpress failed to satisfy its close-out obligations under Regulation SHO by repeatedly engaging in a series of sham “reset” transactions designed to give the illusion that the firm had purchased securities of like kind and quantity. The firm and customer Jonathan I. Feldman engaged in these sham reset transactions in a number of securities, resulting in continuous failures to deliver. Regulation SHO requires the delivery of equity securities to a registered clearing agency when delivery is due, generally three days after the trade date (T+3). If no delivery is made by that time, the firm must purchase or borrow the securities to close out the failure-to-deliver position by no later than the beginning of regular trading hours on the next day (T+4).

The former chief financial officer at optionsXpress – Thomas E. Stern of Chicago – was named in the SEC’s administrative proceeding along with optionsXpress and Feldman. Three other optionsXpress officials – head of trading and customer service Peter J. Bottini and compliance officers Phillip J. Hoeh and Kevin E. Strine – were named in a separate administrative proceeding and settled the charges against them for their roles in the scheme.

Ouch, egg in the face when Charles Schwab bought them out the month before... Did OX see this coming and were more eager to sell?

Reply With Quote
     

Old September 4th, 2012, 12:46 AM   #219 (permalink)
Elite Member
Victoria, BC, Canada
 
Futures Experience: Intermediate
Platform: Tradestation, Multicharts, Interactive Brokers, OptionsXpress
Favorite Futures: Futures
 
Mobiius's Avatar
 
Posts: 27 since Nov 2011
Thanks: 4 given, 25 received


ron99 View Post
Because of my years of trading at certain firms and the volume of trading that I do, my commissions are $2.99 or less plus exchange fees.

At OptionsXpress they charge $12.99 per side for futures options even if you only do 1 trade per month.
Get the Best Online Trading Value with optionsXpress

If you let an option expire OTM, most places do not charge you any fees at expiration.

Hi Ron,

I managed to dig this out of this discussion in regards to the commissions at OX.
How do you go about working OX to recieve 2.99 / contract (or even close to it) when you do 4000 a year (not 1000+ a month)? Obviously you have superior 'past experience with other brokers' clout, but is there anything else?

I've got to try every angle I can. I may be spoiled because we only pay $2-$3 (with fees) even though we are minor players in the futures market. I just have a hard time swallowing $12.99 per contract (4-5 times our futures costs). Well... that and I'm scottish.

Even $5.99 would be better.

Cheers.

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

Old September 8th, 2012, 07:52 AM   #220 (permalink)
Elite Member
Milton Keynes UK
 
Futures Experience: Intermediate
Platform: Investor/RT, Sierra Chart
Favorite Futures: Futures Options, CL
 
Posts: 156 since Jun 2009
Thanks: 74 given, 115 received



ron99 View Post
I am trying to find a real time data provider that can do accurate charts and/or data tables on options on futures.

I was at DTN ProphetX. A lot of incorrect data.

I am now at eSignal. Was OK, then at the start of this month they made changes to their software and the data is incorrect and they haven't been able to fix it yet.

I know not many here trade options on futures, but can you check if your data provider has charts on options on futures?

For example ES Dec 800 puts.

Hi Ron,

Some time ago you were asking the above question about charts for options on futures.
Did you come to a satisfactory conclusion ie optionxpress etc?

I have attached a daily chart and Friday's Intraday chart of CL 80 put from Interactive Brokers. Is this what you were after?

Brit

Attached Thumbnails
Selling Options on Futures?-cl-80-put.jpg   Selling Options on Futures?-cl-80-put-intrra.jpg  
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 08:20 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 2016-12-02 in 0.16 seconds with 20 queries on phoenix via your IP 54.204.130.177