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


Selling Options on Futures?
Updated: Views / Replies:672,117 / 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 – 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 don’t 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?

  #2831 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,322 since Jul 2012
Thanks: 1,092 given, 4,240 received
Forum Reputation: Legendary


datahogg View Post
Ron's strategy for exiting a position is: IM=(Initial Margin), MM=Maintenance margin.
(MM + loss for positon) -----> approach 3 * IM.

But what if you plan on making adjustments to the position instead of exiting? (Maybe buy back puts and sell other puts
further out of the money.) Would the strategy be the same as Ron's strategy for exiting a position?

What are some of the strategies used for making adjustments to a position??

Thanks in advance.

If I have sold puts, and now I am getting close to loss exit point, in the past I have:

1. Sold some calls.

2. Exit existing puts, and sold lower strike puts, same contract month.

3. Exit existing puts, and sold puts, different contract month.

4. Done nothing - ignored the exit signal.


There are pros and cons to each. I have usually regretted whatever decision I made to "fix" the problem. Sometimes, I make the original problem worse.

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 2 users say Thank You to kevinkdog for this post:
 
  #2832 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 261 since Oct 2012
Thanks: 126 given, 75 received


kevinkdog View Post
If I have sold puts, and now I am getting close to loss exit point, in the past I have:

1. Sold some calls.

2. Exit existing puts, and sold lower strike puts, same contract month.

3. Exit existing puts, and sold puts, different contract month.

4. Done nothing - ignored the exit signal.


There are pros and cons to each. I have usually regretted whatever decision I made to "fix" the problem. Sometimes, I make the original problem worse.

Does this mean that your decision point for making adjustments is the same as your exit point??
thanks again.

Reply With Quote
 
  #2833 (permalink)
Elite Member
Steubenville Ohio
 
Futures Experience: Intermediate
Platform: OX, OEC, RJO
Favorite Futures: Options on Futures
 
Posts: 214 since Sep 2012
Thanks: 26 given, 240 received



datahogg View Post
What are some of the strategies used for making adjustments to a position??

Sometimes if I feel the need to exit, but want to stay in the same market I will roll into strangles, either in the same month or rolling out to a further contract to get more time premium and distance. If the price movement was a spike and things calm down it works fine and the problem is fixed. On the other hand, if it continues to move against you or reverses hard enough you may have to readjust again and it ends up you just prolonged your pain. I don't normally look to do this if I feel the trend that was moving against me is strong and will likely continue.

Reply With Quote
The following user says Thank You to Dudetooth for this post:
 
  #2834 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,322 since Jul 2012
Thanks: 1,092 given, 4,240 received
Forum Reputation: Legendary


datahogg View Post
Does this mean that your decision point for making adjustments is the same as your exit point??
thanks again.

Not necessarily. Sometimes, if I see trouble ahead, but I'm not at the exit point, I'll just roll into a lower strike put. This will probably mean selling more options, to end up the same end profit overall, but it provides me with some breathing room.

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 user says Thank You to kevinkdog for this post:
 
  #2835 (permalink)
Trading Apprentice
Buenos Aires Argentina
 
Futures Experience: Beginner
Platform: Sierra Chart
Favorite Futures: ES
 
Posts: 1 since Jan 2014
Thanks: 0 given, 0 received


ron99 View Post
I have been selling options on futures for years. But it is rare to find others doing it. I was wondering if there are others here doing it.

I have been doing it for 5 years. Learned it from James Cordier's book.

I have sold energy, grain, softs and metal options. Far out of the money. Usually less than 90 days from expiration.

Stranggles? Congratulations. I hope one day I can practice well that strategy. I shall read that book. Can you tell me what´s your anual profit average (% of guaranties commitment)?. Thanks .

Reply With Quote
 
  #2836 (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

ES Short Inventory Build Up

From the chart attached you can see the big jump to the record high on the last day of the year, I attribute this to last minute window dressing by funds adjusting to make sure they own the years best performers.

Since then though prices have drifted sideways but the Cumulative delta has been steadily declining by some 40000 contracts. This is typical at tops and shows distribution. Heavy selling on the way down then prices float back up due to light buying/no selling, then get pushed back down on more heavy selling.

I do feel a correction coming.

Brit

Attached Thumbnails
Selling Options on Futures?-es-080114.jpg  
Reply With Quote
The following user says Thank You to britkid99 for this post:
 
  #2837 (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, 4,582 received
Forum Reputation: Legendary


datahogg View Post
Ron's strategy for exiting a position is: IM=(Initial Margin), MM=Maintenance margin.
(MM + loss for positon) -----> approach 3 * IM.

But what if you plan on making adjustments to the position instead of exiting? (Maybe buy back puts and sell other puts
further out of the money.) Would the strategy be the same as Ron's strategy for exiting a position?

What are some of the strategies used for making adjustments to a position??

Thanks in advance.

I never have used MM.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #2838 (permalink)
Elite Member
Bay Area California
 
Futures Experience: None
Platform: TT T4
Favorite Futures: Futures
 
Posts: 713 since Nov 2011
Thanks: 630 given, 735 received


kevinkdog View Post
At least your pipes did not burst!

@spj77 - next best thing after bubbles: throwing a pot of boiling water into the air. -2 F, probably -20F with wind chill.

Sorry I could not figure out how to embed this.

There have been like 40 + accidents from this over the last few days.

"If I agreed with you, we'd both be wrong."
Reply With Quote
 
  #2839 (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, 4,582 received
Forum Reputation: Legendary


value tracker View Post
Stranggles? Congratulations. I hope one day I can practice well that strategy. I shall read that book. Can you tell me what´s your anual profit average (% of guaranties commitment)?. Thanks .

I can't because I do many different types of trading in one account. No easy way to get ROI% for each way of trading.

Reply With Quote
 
  #2840 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,322 since Jul 2012
Thanks: 1,092 given, 4,240 received
Forum Reputation: Legendary



addchild View Post
There have been like 40 + accidents from this over the last few days.

??? From hot water burning the thrower? I actually had some big water drops hit me, but they were already frozen by the time they hit me.

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

Last edited by kevinkdog; January 8th, 2014 at 06:33 PM.
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 10:48 AM.

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 2017-07-27 in 0.09 seconds with 20 queries on phoenix via your IP 54.224.90.112