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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,059 / 5,728
Last Reply:Yesterday (05:26 PM) Attachments:642

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Selling Options on Futures?

Old October 21st, 2013, 01:10 PM   #2261 (permalink)
World'sWorstTrader
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kevinkdog View Post
December expiration?

I am seeing different info, so I must be wrong somewhere...

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Like I mentioned I am new to Futures options. Yes your information is correct. They are for December.
The TOS platform shows the number as 3.75 as the sales price. But my profit/loss curve shows 0.75 as the
profit at expiration?? The delta is correct. And TOS shows a margin of $544.00.

Thanks for your reply and additional info for this trade.

HH

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Old October 22nd, 2013, 08:39 PM   #2262 (permalink)
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ron99 View Post
Thank you. Thank you. Thank you. Got it to work. Thanks for the clear instructions.

Is there anyway to use wildcard characters for the date of the array file? Or do I have to change the SpanScript.txt file every day before I run it?

Now I am going to be greedy. I take the summary file and do the following steps to it.
delete column A
On column B I use Convert Text to Columns Wizard.
Save the resulting Excel file as a 97-2003 Workbook file.

Is there a key stroke saver that I could invoke to perform this task with one click?

I'm not too familiar with using wildcards in a batch file, but I think PC-SPAN will need the specific file names to run correctly.

It should be fairly easy to do what you are looking for with a couple of macros in Excel (VBA). I've been toying around with using Excel to create my SpanScript and my .pos file. It also looks like you can use VBA to run a batch file. So it should be possible to just change the date in a spreadsheet, click a button and Excel would run the whole thing.

I will keep you posted if I have any luck.

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Old October 22nd, 2013, 11:07 PM   #2263 (permalink)
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Dudetooth View Post
I'm not too familiar with using wildcards in a batch file, but I think PC-SPAN will need the specific file names to run correctly.

It should be fairly easy to do what you are looking for with a couple of macros in Excel (VBA). I've been toying around with using Excel to create my SpanScript and my .pos file. It also looks like you can use VBA to run a batch file. So it should be possible to just change the date in a spreadsheet, click a button and Excel would run the whole thing.

I will keep you posted if I have any luck.

My current workaround is after I unzip the array file, I remove the date from the file name leaving cme.s.pa2. I then changed the script to load cme.s.pa2. Then I don't have to change the script file anymore.

My initial problem was I put a space in the SPAN Script file name. I forgot DOS couldn't handle spaces in file names. Shows you how old the SPAN program is.

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Old October 22nd, 2013, 11:20 PM   #2264 (permalink)
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Consider a separate thread for PC span stuff, so it's easier for people to find and learn/benefit from in the future.

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Old October 23rd, 2013, 08:06 AM   #2265 (permalink)
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ron99 View Post
My current workaround is after I unzip the array file, I remove the date from the file name leaving cme.s.pa2. I then changed the script to load cme.s.pa2. Then I don't have to change the script file anymore.

My initial problem was I put a space in the SPAN Script file name. I forgot DOS couldn't handle spaces in file names. Shows you how old the SPAN program is.

This is my first take ... it's not pretty, but does some of the basic functions I was looking for (download risk arrays, unzip, rename, run batch file). It would be easy to tweak if you are comfortable with VBA. If not, let me know and I'll see what I can modify to have it do what you are looking for.

Attached Files
Register to download File Type: zip PC-SPAN.zip (18.2 KB, 13 views)
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Old October 23rd, 2013, 09:47 AM   #2266 (permalink)
Market Wizard
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Dudetooth, let's move our discussion on PC-SPAN to this thread.

https://futures.io/options-cfd-trading/29125-pc-span.html

Could you repost your posts about PC-SPAN there? Thanks.

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Old October 23rd, 2013, 12:02 PM   #2267 (permalink)
World'sWorstTrader
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TOS


shanemcdonald28 View Post
hi
How can you sell OTM options on futures ?
I use TOS, and was wondering of a good place to do options on futures. They are ok with stock options, but not so much on futures options.

Also, I cannot sell options at TOS unless I own the stock or have a certain amount of capital. How does that work when selling options on futures ?

thanks
shane

AT TOS you can sell options on futures using their SPAN margin for margin accounts (not IRA) for the
following:

/ES /NQ /ZB /ZF /ZN /ZT /CL /ZC /ZS AND /ZW . Commissions are around $3.00 per side.

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Old October 24th, 2013, 10:46 PM   #2268 (permalink)
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Thin Premium Tails

This month I have a strangle on NG. I am noticing some differences between NG and CL. This relates to what I think I am observing as thin premium in the tails for NG in the front and back month which is something I have not seen in CL before until much closer to expiry.

I have noticed this also in RB.

It is as if the bell curve is become thinner and taller Between 90 to 60 DTE?

Am I imagining it or is this a repeating characteristic for NG?

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Old October 25th, 2013, 11:01 AM   #2269 (permalink)
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ron99 View Post
When I put a position on I have 2 times the Initial Margin required for cash excess. If the increase in margin plus the loss on the increased premium (edited) uses up this cash excess then it is time to exit.

For example, if I sell an option for $100 and the margin required is $500, I will have $1000 excess.

If the margin increases to $900 and the premium is higher than $200 then the cash excess is gone and it is time to exit.

Ron,

I think I must have misunderstood this part of your strategy.

I think you once said that you have 1/3 IM and 2/3 cash excess, so in this case I would have had $500 margin and $1000 excess giving a total allocated to the trade of $1500.

I would exit when margin + increased premium exceeds my allocation (eg when the margin increases to $1400 and the premium is higher than $200).

Am I missing something?


Chris

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Old October 25th, 2013, 11:06 AM   #2270 (permalink)
Market Wizard
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BlueRoo View Post
This month I have a strangle on NG. I am noticing some differences between NG and CL. This relates to what I think I am observing as thin premium in the tails for NG in the front and back month which is something I have not seen in CL before until much closer to expiry.

I have noticed this also in RB.

It is as if the bell curve is become thinner and taller Between 90 to 60 DTE?

Am I imagining it or is this a repeating characteristic for NG?

Yes different commodities have different time erosion rates.

The CL curve probably stays wider because of more volume traded on those options compared to NG. More demand keeps premium higher.

Could you explain which month you are talking about when you mention "back month"?

I agree the curve becomes thinner. I don't see taller.

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