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Selling Options on Futures?
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Created: by ron99 Attachments:714

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Selling Options on Futures?

  #281 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
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Mark59 View Post
Hi Ron

That was for all 4 Options, 2 Silver & 2 Oil.

Question;

When you budget to keep twice the Margin in reserve do you count the Maintenance Margin as well?

Thanks!
Mark

I never look at Maintenance Margin.

If you cut the excess because Mat margin is lower you will end up getting burned because you don't have enough excess.

Doing less trades and having 90+% winners is far more important than having more trades and < 90% winners because those losers hurt badly. They wipe out the winnings from a lot of trades.

And I know that because I did that.

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The following 3 users say Thank You to ron99 for this post:
 
  #282 (permalink)
Trading Apprentice
Toronto/Canada
 
Futures Experience: Advanced
Platform: Sierra Charts
Favorite Futures: Options
 
Posts: 25 since Oct 2012
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I Hear ya!

I was not looking at using the less amount .....I was wondering if you add it to the regular Margin.

Thanks for the reply

Mark

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  #283 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
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Mark59 View Post
I Hear ya!

I was not looking at using the less amount .....I was wondering if you add it to the regular Margin.

Thanks for the reply

Mark

Sorry, I misinterpreted your post.

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  #284 (permalink)
Trading for Fun
Huntsville AL/USA
 
Futures Experience: Intermediate
Platform: optionsXpress
Favorite Futures: Options on Futures
 
Posts: 54 since May 2012
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ron99 View Post
I never look at Maintenance Margin.

If you cut the excess because Mat margin is lower you will end up getting burned because you don't have enough excess.

Doing less trades and having 90+% winners is far more important than having more trades and < 90% winners because those losers hurt badly. They wipe out the winnings from a lot of trades.And I know that because I did that.

AMEN to this wise nugget! This is valuable advice!

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  #285 (permalink)
Trading Apprentice
Toronto/Canada
 
Futures Experience: Advanced
Platform: Sierra Charts
Favorite Futures: Options
 
Posts: 25 since Oct 2012
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Ron
Appreciate all your input!

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  #286 (permalink)
Trading Apprentice
jawatimur
 
Futures Experience: Intermediate
Platform: metatrader
Favorite Futures: forex, futures
 
Posts: 3 since Oct 2012
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Repair of Selling put when price agains us

dear ron99,

i am sorry if my english bad, please appologize for my wrong info, i am using interactive brokers platform.
thank you very much for your information thats realy help me.
ron can you give me the information of your stop loss or what should you do when the price agains you. i am usually put stop loss when the premium became double. like my trade CL DEC 75.5 PUT @0.14 i will put stop loss when the premium @0.28.

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  #287 (permalink)
Elite Member
London/UK
 
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key drivers of option price


aayohanes View Post
dear ron99,

i am sorry if my english bad, please appologize for my wrong info, i am using interactive brokers platform.
thank you very much for your information thats realy help me.
ron can you give me the information of your stop loss or what should you do when the price agains you. i am usually put stop loss when the premium became double. like my trade CL DEC 75.5 PUT @0.14 i will put stop loss when the premium @0.28.

hi aayohanes,
this is not to answer for ron, just to give you something to think about. the price of the put can increase to twice the amount despite the underlying not moving much at all (its unlikely, but it can), as there are other key drivers of option price (especially OTM puts) rather than merely the underlying spot price. for this reason i believe its fairly crucial to understand all the key option price drivers before trading it. thats just my opinion though, and what do i know?

g/l.

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  #288 (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

key drivers of option price


aayohanes View Post
dear ron99,

i am sorry if my english bad, please appologize for my wrong info, i am using interactive brokers platform.
thank you very much for your information thats realy help me.
ron can you give me the information of your stop loss or what should you do when the price agains you. i am usually put stop loss when the premium became double. like my trade CL DEC 75.5 PUT @0.14 i will put stop loss when the premium @0.28.

hi aayohanes,
this is not to answer for ron, just to give you something to think about. the price of the put can increase to twice the amount despite the underlying not moving much at all (its unlikely, but it can), as there are other key drivers of option price (especially OTM puts) rather than merely the underlying spot price (volatility being one). for this reason i believe its fairly crucial to understand all the key option price drivers before trading it. thats just my opinion though, and what do i know?

g/l.

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  #289 (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 strangle

Around the close on Wednesday when ES was 1402, I noticed it was possible to sell 1420 call and 1380 put for 2.00 points each or $200 per strangle. This seemed a good return for 2 days of risk and 20 points movement each way.
Thursday open saw a high of 1416.75 which was getting a bit close and the call had doubled then it sold off nicely, the low of 1397.5 occured today so the puts were never really challenged.

The latest email from James Cordier is prepping for Coffee puts although he doesn't mention any strikes, looks interesting though as I am looking for something to sell.

Brit

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  #290 (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


A good trade BK, it is major support @ 1400 (also a triple bottom on the H1) so if it did break I wld expect the momentum wld have pushed it down....if it broke. The technicals on shorting coffee or selling calls look good, was tempted a whle back but it spike to 180, which was a bit out my comfort zone.

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