Selling Options on Futures? (Page 224) - 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:569,638 / 5,734
Last Reply:10 Hours Ago (01:01 AM) 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 October 17th, 2013, 01:05 PM   #2231 (permalink)
Elite Member
Portland OR
 
Futures Experience: Intermediate
Platform: None
Favorite Futures: Stocks
 
Posts: 56 since Dec 2012
Thanks: 87 given, 29 received

CLX 125C

Reply With Quote
     

Old October 17th, 2013, 01:24 PM   #2232 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,327 since Jul 2011
Thanks: 634 given, 3,907 received

39.60 is as low as CL margin for options goes at OX. Never lower at current margin rate. The margin for a 170 call is the same. 39.60.

Reply With Quote
     

Old October 17th, 2013, 11:15 PM   #2233 (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

Suggestions for directing allocation


So I have 10% of capital to apply to another trade this month to reach my 30% allocation to margin. Strangles in CL and NG in place. So starting a little diversification. Considering RB with its lift in its volatility. Any suggestions where I might look? Have also thought ES puts at 1500. Just not sure where to start. So used to the one commodity a month trade! Your ideas will be appreciated.

Reply With Quote
     

Old October 17th, 2013, 11:40 PM   #2234 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,195 since Jul 2012
Thanks: 1,004 given, 3,970 received


BlueRoo View Post
So I have 10% of capital to apply to another trade this month to reach my 30% allocation to margin. Strangles in CL and NG in place. So starting a little diversification. Considering RB with its lift in its volatility. Any suggestions where I might look? Have also thought ES puts at 1500. Just not sure where to start. So used to the one commodity a month trade! Your ideas will be appreciated.

RB is very volatile, and is usually correlated to CL. I'm in CL puts and RB puts right now, and I really look at that as one position. Some markets I am heavy in right now:

Soybean Puts

Nat Gas Calls

Nat Gas Puts

30 Year Bond Calls

Gold Puts

Cocoa Calls


By "heavy" I mean that those positions use between 10-15% of my total margin. That is normally as high as I go - that way when I am wrong, it is not a killer situation.

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 3 users say Thank You to kevinkdog for this post:
     

Old October 17th, 2013, 11:55 PM   #2235 (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

Futures Edge on FIO

Are you a NinjaTrader user?

 
Kevin, Appreciate the reply. You might remember your reply to my question on diversification from a few months ago. I absolutely agree with your approach. It is just taking me a while to get there. I have traded CL singularly for so long it has been hard to think elsewhere. That's why the work on seasonality - an attempt to understand the other options. This is helping. But it is not experience. You have given me some home work to do before tonights (AU time) session so I best get to it! Cheers Mate!

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

Old October 18th, 2013, 09:17 AM   #2236 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received

200% Rule

RON99 and all others. Thank you for all information regarding this topic.

Is the 200% rule for exiting trades as discussed in Cordier's book a good working exit point?

Do most traders keep the risk approximately the same across 4 or 5 different positions?

Thanks in advance. H. Hampton.

Reply With Quote
     

Old October 18th, 2013, 02:33 PM   #2237 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,327 since Jul 2011
Thanks: 634 given, 3,907 received


datahogg View Post
RON99 and all others. Thank you for all information regarding this topic.

Is the 200% rule for exiting trades as discussed in Cordier's book a good working exit point?

Do most traders keep the risk approximately the same across 4 or 5 different positions?

Thanks in advance. H. Hampton.

The 200% does not work for the far OTM options we sell.

For example, if you sell an option for $50 and it doubles to $100, it is losing 100% but dollar wise it is only $50. Certainly manageable.

I vary on the risk. I like to be in several commodities but if there is something good like KC last summer, I will overload on that position.

Reply With Quote
     
The following 2 users say Thank You to ron99 for this post:
     

Old October 18th, 2013, 02:41 PM   #2238 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,327 since Jul 2011
Thanks: 634 given, 3,907 received

I have sold some Jan NG 5.50 calls today. Very good ROI. Bearish seasonals. Neutral fundamentals.

Reply With Quote
     
The following 3 users say Thank You to ron99 for this post:
     

Old October 18th, 2013, 02:49 PM   #2239 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,195 since Jul 2012
Thanks: 1,004 given, 3,970 received


ron99 View Post
I have sold some Jan NG 5.50 calls today. Very good ROI. Bearish seasonals. Neutral fundamentals.

That makes me feel good. I was starting to wonder about my decision. I sold some Dec NG 5 and 5.1 calls in past few weeks, and am still around breakeven on them (they were in the red for a while). Not as high of an ROI as what you have, either.

I think sometimes when I see something I like, it is better to wait a little bit and see if it gets better. Dec NG was a good example, since up until a few days ago, it had been going up. I hate missing out, though too!

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

Old October 18th, 2013, 02:58 PM   #2240 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,327 since Jul 2011
Thanks: 634 given, 3,907 received



kevinkdog View Post
That makes me feel good. I was starting to wonder about my decision. I sold some Dec NG 5 and 5.1 calls in past few weeks, and am still around breakeven on them (they were in the red for a while). Not as high of an ROI as what you have, either.

I think sometimes when I see something I like, it is better to wait a little bit and see if it gets better. Dec NG was a good example, since up until a few days ago, it had been going up. I hate missing out, though too!

Waiting is 50-50 whether it is a good idea or not. So I have quit waiting for a better price. Unless there is news coming out that might move prices in your favor.

This reminds me of something I read a week ago. The analyst said back in late July to buy CC futures, but wait for a pullback. A pullback never came and he missed out on a very good return.

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)
 

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

Elite only
 

Trading Technologies: ADL hands-on

Dec 13

Normal webinar schedule resumes after the holidays

January

Ernie Chan: Risk Management

Elite only

Dedicated Trading Servers: Advantages/Disadvantages w/sam028

Elite only

An Afternoon with FIO member Massive I

Elite only

Leo Murphy: TBA

Elite only
     

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 11:21 AM.

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 2016-12-09 in 0.14 seconds with 20 queries on phoenix via your IP 54.166.48.3