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Selling Options on Futures?


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Selling Options on Futures?

  #2551 (permalink)
 kevinkdog   is a Vendor
 
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Looks like there was a ton of uncertainty/fear/volatility in NG earlier this AM. I always compare theoretical prices to actual bid/ask. An hour ago, the bid/ask prices were way above theoretical prices. Now they are much closer. Although I hate being on the wrong side of all this, it is interesting to follow what to me looks like fear in the market.

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  #2552 (permalink)
Harvard16
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Absolutely KD, markets up 5c and people are hitting the offer on things like H4 6C at .054. double yesterdays price which equates to ridiculous delta for an option 37% out of the money, just crazy. I wish that was my offer that got hit.

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  #2553 (permalink)
 rosho01 
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kevinkdog View Post
Looks like there was a ton of uncertainty/fear/volatility in NG earlier this AM. I always compare theoretical prices to actual bid/ask. An hour ago, the bid/ask prices were way above theoretical prices. Now they are much closer. Although I hate being on the wrong side of all this, it is interesting to follow what to me looks like fear in the market.

hi kd,
is it 'uncertainty/fear' or expectation that prices will go higher?


(fwiw harvard16.....offers get lifted, bids get hit).

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  #2554 (permalink)
 Bakes 
Brisbane/Australia
 
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did the NG storage report just come out by any chance?

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  #2555 (permalink)
 
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 SMCJB 
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-81
Weekly Natural Gas Storage Report - EIA

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  #2556 (permalink)
 Bakes 
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bloody hell,

being in Aus i have always been asleep when this gets released, man did the spreads on options strikes widen. is this normal?

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  #2557 (permalink)
 
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 SMCJB 
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I don't trade options, but 60-90 seconds before the number is released all the liquidity is pulled in the futures, one of the reasons market moves so violently, so few resting orders.

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  #2558 (permalink)
 
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Just a reminder that @ron99 is presenting an Options Webinar today after the close at 4:30 PM Eastern




https://nexusfi.com/webinars/#registernow

Mike

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  #2559 (permalink)
 muffin58 
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Just a reminder that @ron99 is presenting an Options Webinar today after the close at 4:30 PM Eastern




https://nexusfi.com/webinars/#registernow

Mike

That's assuming he hasn't done anything rash after watching these NG calls get ballistic.

I picked up my marbles yesterday and went home after watching my NG mar 6 calls go from 8 to 17.

Today at 54. Got my ass handed to me years ago in NG. I'll watch for now.

And listen to ron99 for advice.

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  #2560 (permalink)
 Bakes 
Brisbane/Australia
 
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I am being bent over right now. Hell of a learning curve. Busy bailing to live to fight another day.

Rookie mistakes, i wont be making them again. It costs too much sleep and too much money!

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