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


Selling Options on Futures?
Updated: Views / Replies:681,499 / 6,283
Created: by ron99 Attachments:732

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
 732  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #291 (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
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.

Rosho,

Actually he is making the case for selling puts in the next few quarters, on the basis of rising global demand and current depressed prices coupled with unlikelyhood of rising supply due to increasing production costs, weather problems and low prices.

Brit

Reply With Quote
 
  #292 (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
Rosho,

Actually he is making the case for selling puts in the next few quarters, on the basis of rising global demand and current depressed prices coupled with unlikelyhood of rising supply due to increasing production costs, weather problems and low prices.

Brit

my mistake, misread your post.

gonna start looking at cost of straddles/strangles much more when they approach big technical levels. if silver/gold gets back down to the ~26/1550 levels and consolidates for a while wld expect to see the price of a straddle bump up significantly due to high demand.

Reply With Quote
 
  #293 (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

Coffee


I have been watching Coffee KC looking for signs that the downtrend is coming to an end.
If you look at my chart you can see at

1 There is a push lower on cummulative volume but price makes a higher low. This is indicative of limit orders absorbing the selling ie lot of effort (to go down) but little result. This is hidden divergence.

2 This time there is push to a lower low for price but buyers are holding on creating a bullish divergence

3 Buyers are entering in greater numbers, a combination of fresh new buyers and short covering from sellers from the 159 level.

This looks like the start of some long accumulation taking place,
Could we go lower? Of course if there is another push down and the recent buyers at 3 have to sell to cover that would drive down prices another leg.

I will be watching for price to take out the 158 level

Brit

Attached Thumbnails
Selling Options on Futures?-cofee.jpg  
Reply With Quote
 
  #294 (permalink)
Trading Apprentice
Winnipeg Canada
 
Futures Experience: Intermediate
Platform: Metatrader
Favorite Futures: Options
 
Posts: 8 since Oct 2012
Thanks: 3 given, 0 received

I am watching coffee too. Settled at 155 Friday , I am thinking of selling Mar 185 call if there is a bit of a bounce next week. Record crop coming up, increase in demand but increase in volume could be more sellers coming to the table.

Reply With Quote
 
  #295 (permalink)
Trading Apprentice
Medellin
 
Futures Experience: Beginner
Platform: non
Favorite Futures: options in futures
 
Posts: 32 since Apr 2012
Thanks: 36 given, 12 received

Caffee March calls

I also believe, contrary to James Cordier recommendation to sell puts, coffee will stay low in the following months. I sold coffee march 200 calls at 0.72.

Reply With Quote
 
  #296 (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


t jay View Post
I am watching coffee too. Settled at 155 Friday , I am thinking of selling Mar 185 call if there is a bit of a bounce next week. Record crop coming up, increase in demand but increase in volume could be more sellers coming to the table.

Welcome t jay,

Of course there is always the possibility that price goes nowhere much by March 2013 and it might be profitable to sell calls and puts for a deep OTM strangle.

@alferdoe

It will be interesting to see if his (James Cordier) obsevations are proved worthwhile or not. Do you receive his email correspondence?

@ron99
What are your thoughts on Coffee, Ron

Reply With Quote
 
  #297 (permalink)
Trading for Fun
Huntsville AL/USA
 
Futures Experience: Intermediate
Platform: optionsXpress
Favorite Futures: Options on Futures
 
Posts: 54 since May 2012
Thanks: 80 given, 26 received

I will chime in. I had 10 KC Puts expire this past Friday. They were 1300 and 1350 Puts. I think KC puts are still a pretty safe bet. The only thing I did not like was the margin required. It started off at a reasonable level when I sold them 3 months ago. The problem is the margin stayed really high. Usually as time ticks along and it looks like the puts will expire worthless, the margin required drops. Even on Friday the margin per contract was over $2,500 while the value of the put had gone to almost nothing. I could have bought them back but I had plenty of margin and didn't need to waste my money.

Reply With Quote
 
  #298 (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


Raven View Post
I will chime in. I had 10 KC Puts expire this past Friday. They were 1300 and 1350 Puts. I think KC puts are still a pretty safe bet. The only thing I did not like was the margin required. It started off at a reasonable level when I sold them 3 months ago. The problem is the margin stayed really high. Usually as time ticks along and it looks like the puts will expire worthless, the margin required drops. Even on Friday the margin per contract was over $2,500 while the value of the put had gone to almost nothing. I could have bought them back but I had plenty of margin and didn't need to waste my money.

I too noticed the high margins on even far out strikes. Try making it a spread instead of naked as the high margin on the buying leg cancels out a lot of the selling margin without giving up too much premium. This can result in a much better ROI

For instance compare 1350 naked with a 1350/1200 spread.

Brit

Reply With Quote
The following user says Thank You to britkid99 for this post:
 
  #299 (permalink)
Trading Apprentice
Toronto/Canada
 
Futures Experience: Advanced
Platform: Sierra Charts
Favorite Futures: Options
 
Posts: 25 since Oct 2012
Thanks: 20 given, 5 received

I have the Coffee Jan 135 puts on , I only did 2 as the margin is so high!I may look at the Feb 2.00 Calls

What do you think of the latest newsletter? They recommend looking at Cotton Calls.

Reply With Quote
 
  #300 (permalink)
Trading Apprentice
Winnipeg Canada
 
Futures Experience: Intermediate
Platform: Metatrader
Favorite Futures: Options
 
Posts: 8 since Oct 2012
Thanks: 3 given, 0 received


Don't get the newsletter but I must agree , Cotton calls would probably do well. Read a article and fundamentally it would be a good move , lots of cotton around and the exports , India and China, are not looking to buy as apparently they have lots in house. I just sold 31000 Dec Heating Oil calls for 0.0227. Been a good 24 hours for 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)

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

August
 

Ask Me Anything (AMA) w/Rod Casilli @ Collective2

Aug 23
 

Prototyping Python Strategies (part 3, Live Trading) w/Ran Aroussi [1PM ET]

Elite only
 

Develop Strategies and Perfect Execution w/Brannigan Barrett @ 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 10:54 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 2017-08-19 in 0.09 seconds with 19 queries on phoenix via your IP 54.156.32.80