Selling Options on Futures? - Options on Futures | futures io social day trading
futures io futures trading


Selling Options on Futures?
Updated: Views / Replies:671,670 / 6,238
Created: by ron99 Attachments:729

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • 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.

-- Big Mike, Site Administrator

Reply
 729  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #231 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,651 since Jul 2011
Thanks: 770 given, 4,580 received
Forum Reputation: Legendary


rosho01 View Post
Hi ron, is there a danger that by the time you are aware of fundamental changes ie they get reported in the news sources you use, a bigger move may have occurred and you were unable to make the decision to bail?

I suppose what I am trying to ask is how many of your early exit decisions are made through pure intuition (gained from experience) and how many by dissemination of market information/news (also obviously gained through experience)?

Thanks.

Hard to give you an exact number. I use all data that I can get related to that futures contract. DCOT futures only data for Managed Money trends. OI direction. Seasonal trends. Past performance of the futures. General economy direction. New fundamental info (this is probably the most important). All of these plus probably some others I'm not thinking of right now go into the decision. Then that is what goes into my gut decision.

I do find that my gut decision is better over the years.

Today the grains crashed. Seasonal trend is downward into the end of Sep grain reports. Traders taking profit before the report.

Also this year the Managed Money (specs) are very heavy on the long side. 94% long positions in Corn. 97% long in S. So when the longs start bailing it will be a big drop.

I knew when the US drought became as strong as it was that the futures would be extremely volatile. I had sold July grain puts and then decided that things were too volatile to do any thing else in grains the rest of the summer. That's the experience talking.

Reply With Quote
The following 3 users say Thank You to ron99 for this post:
 
  #232 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,651 since Jul 2011
Thanks: 770 given, 4,580 received
Forum Reputation: Legendary


britkid99 View Post
I sold Jan 13 2000 Soybean Calls on friday at 18 7/8 ($943.75) and today they closed at 10 ($500). 4% limit down move in futures and my premium nearly halved after 1 day.

Brit

Enjoy the perfect trade. That doesn't happen too many times.

Normally grains are down into the end of Sep and then rebound in Oct. They might not rebound too much this Oct because US farmers will be selling grains right out of the field. But be aware of this seasonal trend.

Reply With Quote
 
  #233 (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



syxforex View Post
nice work, what was your trade based on?

It was mainly based on seasonality as seen in MRCI's charts. As Ron has already mentioned there is seasonal low going into October, then a lift.

The main concern of mine was the plunging Dollar after Uncle Ben's announcement on Thursday. This could have affected prices to the upside and may still do.

I shall be watching prices closely and will not be hanging around too long on this one.

As I am in the UK it is still two hours to US open as I type this and futures are down around 25 cents I have just taken half off at 8 ($400) in case we get a bounce today.

Brit

Reply With Quote
 
  #234 (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
Enjoy the perfect trade. That doesn't happen too many times.

Normally grains are down into the end of Sep and then rebound in Oct. They might not rebound too much this Oct because US farmers will be selling grains right out of the field. But be aware of this seasonal trend.

I know I was extremely fortuitous in my timing on the beans. Had also received an email from Mr Cordier suggesting farmers were being forced to liquidate livestock early due to costs of feeding. His suggestion was selling the 2300 level but I went a bit closer.

Congratulations on the thread getting over 12000 views, someone must be watching us.

Brit

Reply With Quote
 
  #235 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,651 since Jul 2011
Thanks: 770 given, 4,580 received
Forum Reputation: Legendary

US dairymen are culling 5-10k more cows per week than they did last year. About 10-15% more.

Interesting that Cordier is sending out emails and not putting them on his website like he used to do.

Reply With Quote
 
  #236 (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

I am still getting his "email seminar" series where he talks about things in the book and sometimes gives some suggestions for possible trades and also recently received the Aug/Sept pdf newsletter for prospective clients which talked about grains and livestock and possible live cattle trade on further weakness.

Brit.

Reply With Quote
 
  #237 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker/Data: IB / IQfeed
Favorite Futures: Bund
 
Posts: 438 since Sep 2012
Thanks: 260 given, 96 received


britkid99 View Post
I sold Jan 13 2000 Soybean Calls on friday at 18 7/8 ($943.75) and today they closed at 10 ($500). 4% limit down move in futures and my premium nearly halved after 1 day.

Brit

Hi britkid,

Nice trade.

Do you have any bad/not so good positions on at the moment? Would be interesting to see how you manage them.

Also, you mention you can only use IB with your pension, so the holders of your pension allow you to trade options with the funds through certain brokers, as that correct? (sorry to go off topic).

Thanks.

Reply With Quote
 
  #238 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker/Data: IB / IQfeed
Favorite Futures: Bund
 
Posts: 438 since Sep 2012
Thanks: 260 given, 96 received


ron99 View Post
Hard to give you an exact number. I use all data that I can get related to that futures contract

thanks, as expected.

Are all the commodity futures you trade cash settled? I guess its not that big an issue as they are either closed out before expiry or left to expire well OTM?

Reply With Quote
 
  #239 (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


rosho01 View Post
Hi britkid,

Nice trade.

Do you have any bad/not so good positions on at the moment? Would be interesting to see how you manage them.

Also, you mention you can only use IB with your pension, so the holders of your pension allow you to trade options with the funds through certain brokers, as that correct? (sorry to go off topic).

Thanks.

Hi rosho01,

Take a look at the chart attached which shows my recent CL Nov 80 Put, and some of my analysis and thoughts behind it.

I have a SIPP with Stadia as the trustees. They are the only one I could find that gave me good access to US markets through IB. So you get low SIPP costs about £250/yr i think, plus low cost access to US. The only downside is the 150% margins they impose on top of their full exchange requirements. You can trade freely with Futures and Options on Futures but not allowed to short stocks and it is a cash account so no stock marginning allowed either. Stock options ie covered call etc can be requested.

Brit

Attached Thumbnails
Selling Options on Futures?-cl-80-put.jpg  

Last edited by britkid99; September 21st, 2012 at 09:21 AM.
Reply With Quote
The following 4 users say Thank You to britkid99 for this post:
 
  #240 (permalink)
Elite Member
Singapore
 
Futures Experience: Beginner
Platform: Dont know yet
Favorite Futures: ES
 
Posts: 61 since May 2012
Thanks: 21 given, 26 received


Hi guys,
I am new to selling options ,particularly options on futures.Can we do credit spread with 1 or 2 month out and still be able to collect decent credit instead of selling naked options? Coz the idea of unlimited loss should the position goes again you is pretty scary to me.

Reply With Quote

Reply



futures io > > > > Selling Options on Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

July Journal Challenge w/$1100 in prizes from TopstepTrader

July
 

An Afternoon with FIO member Softsoap

Elite only

Battlestations: Show us your trading desks and win $750 in prizes

August
 

Extended Ask Me Anything w/Brett Steenbarger

Elite only

Prototyping Python Strategies (part 3) w/Ran Aroussi

Elite only

Brannigan Barrett w/Axia Futures

Elite only

Introduction to Phillip Capital futures brokerage services

Aug TBD

How Monte Carlo Analysis Can Help Your Trading w/Kevin Davey

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 11:00 AM
Recommend futures, options Broker? sam1197 Reviews of Brokers and Data Feeds 17 March 27th, 2013 12:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 04:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 12:40 PM
Zen-Fire Futures options tici88 Reviews of Brokers and Data Feeds 1 July 30th, 2011 09:16 AM


All times are GMT -4. The time now is 04:50 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@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 2017-07-25 in 0.09 seconds with 19 queries on phoenix via your IP 54.198.244.0