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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,200 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old November 15th, 2013, 03:57 PM   #2381 (permalink)
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Thank you so much to everybody who has responded - it has been very helpful! For example, I have to think twice about user the Zaner 360 platform now.

No Delta? That's a pain, I'll have to call it up elsewhere when placing trades.
No indication of required margin? That's rough.

Will investigate all the other trading platforms they offer - they have so many I might get hit with analysis paralysis! Heh!

Thanks again, and I look forward to seeing more feedback!

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Old November 16th, 2013, 01:27 AM   #2382 (permalink)
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I'm looking for a broker and a front-end as well. I can't imagine using an options trading front end that doesn't give you delta. I want to know what my ROI is going to be BEFORE I place the trade, if at all possible. Does any of the front-ends provide that?

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Old November 16th, 2013, 01:31 AM   #2383 (permalink)
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mu2pilot View Post
I'm looking for a broker and a front-end as well. I can't imagine using an options trading front end that doesn't give you delta. I want to know what my ROI is going to be BEFORE I place the trade, if at all possible. Does any of the front-ends provide that?

Watch the webinars on futures.io (formerly BMT) on CTS T4 platform, it has extensive options support. There is also an AMA thread to ask questions to them:

https://futures.io/brokers-data-feeds/25772-cts-t4s-brian-murphy-director-busine...ing-ask-me-anything.html

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Old November 16th, 2013, 01:36 AM   #2384 (permalink)
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Thanks, Mike! I would have "thanked" your post, but there is no link to do so.

EDIT: Now I see it. Post thanked.

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Old November 16th, 2013, 11:32 AM   #2385 (permalink)
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Physicsman View Post
Thank you so much to everybody who has responded - it has been very helpful! For example, I have to think twice about user the Zaner 360 platform now.

No Delta? That's a pain, I'll have to call it up elsewhere when placing trades.
No indication of required margin? That's rough.

Will investigate all the other trading platforms they offer - they have so many I might get hit with analysis paralysis! Heh!

Thanks again, and I look forward to seeing more feedback!

The only two platforms that I know of that give you the margin requirements are OX and IB. Of course IB charges an arm and a leg for margin for I wouldn't consider them an option.

With the PC-SPAN program now only costing $10 that is an option. You just have to wade through 1988 software to get what you want. We have a thread on it.

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Old November 16th, 2013, 12:18 PM   #2386 (permalink)
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With the PC-SPAN program now only costing $10 that is an option. You just have to wade through 1988 software to get what you want. We have a thread on it.

For those that are Excel/VBA savvy, another option is to use code to search the risk arrays from CME ... they are in essence just large text files (open them in notepad and take a look). Add the greatest risk of the 16 scenarios to the current option value and you'll have the maintenance margin.

I'm not 100% sure on the initial margin, but from a couple of examples I looked at on PC-SPAN (including the example below), if you take the maintenance margin and add to it 10% of its value and then add the option value you'll get the initial margin.

EX. CLG4 C115 (Nov 15 settlement Risk Array)
-Risk $243 + option value $50 = Maintenance Margin $293
-Risk $243 + 10% of risk $24 + option value $50 = Initial Margin $317

Also, delta of the option is in the risk arrays and can be extracted as well.

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Old November 16th, 2013, 02:08 PM   #2387 (permalink)
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Firetip web-based platform also gives you the margin requirements.

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Old November 17th, 2013, 10:20 AM   #2388 (permalink)
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For those that are Excel/VBA savvy, another option is to use code to search the risk arrays from CME

Which of the many files online is the "risk array" file from CME? I assume it is on the ftp://ftp.cmegroup.com server somewhere? But there are SO many files it's difficult to know which is which.

Thanks in advance.

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Old November 17th, 2013, 11:58 AM   #2389 (permalink)
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Which of the many files online is the "risk array" file from CME? I assume it is on the ftp://ftp.cmegroup.com server somewhere? But there are SO many files it's difficult to know which is which.

Thanks in advance.

I use SPAN to get margins, and deltas seem to be in the report as well. The file name has a ".s." in it for settlement prices. The .i. files are for intraday margin updates, and I'm not sure about the others.

ftp://ftp.cmegroup.com/pub/span/data/cme/

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Last edited by kevinkdog; November 17th, 2013 at 12:34 PM.
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Old November 17th, 2013, 12:35 PM   #2390 (permalink)
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enderqa View Post
Which of the many files online is the "risk array" file from CME? I assume it is on the ftp://ftp.cmegroup.com server somewhere? But there are SO many files it's difficult to know which is which.

You should only need the 's' risk arrays like kevinkdog mentioned. The other lettered risk arrays are for different cycles throughout the day. If you want a better understanding of the different arrays you can load look at this pdf from CME: http://www.cmegroup.com/clearing/files/Loading_a_Risk_Array_File.pdf.

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