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


Selling Options on Futures?
Updated: Views / Replies:692,923 / 6,325
Created: by ron99 Attachments:735

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
 735  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #301 (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
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.

Sounds like the article you read was the same thing.

Got to love the farmers mentality; last year prices were high due to shortages so lets grow loads this year and make a bomb - Oh there's a supply glut and the bottom just fell outta the market - Doh

Reply With Quote
 
  #302 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,719 received
Forum Reputation: Legendary


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.

A 185 call is way too close to ITM to be safe. That's a .1304 delta now.

The crop coming up is the "low" year. Every other year the trees produce more. The crop just harvested was the good or higher production year.

Reply With Quote
 
  #303 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,719 received
Forum Reputation: Legendary


Why is it that I get emails telling me there are new posts in the thread then they quit coming even though there are more new posts? It still says I am subscribed to the thread.

Reply With Quote
 
  #304 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,719 received
Forum Reputation: Legendary


britkid99 View Post
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

I will sell options on expiration day if there are bids far enough OTM for me to be comfortable. Your trade worked but 20 points is risky. Glad it worked for you.

Reply With Quote
 
  #305 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,719 received
Forum Reputation: Legendary


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.

If your strike is close to ITM the margin doesn't drop much on the ICE softs. Further OTM it does drop.

Reply With Quote
 
  #306 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,719 received
Forum Reputation: Legendary


t jay View Post
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.

Futures at 3.00 and you sold 3.10 calls? One day you will get burned badly doing that.

I hope I am not coming on too strong, but I have seen too many trades like that wipe out a trader. I hope you take this as cordial advise.

Reply With Quote
The following 2 users say Thank You to ron99 for this post:
 
  #307 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,719 received
Forum Reputation: Legendary

Good News!

CME is lowering margins on several contracts effective next Wed 11/21.

GC down 18%
SI down 28%
NG down 10%
LC down 17%
LH down 16%

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-498.pdf

Reply With Quote
The following 5 users say Thank You to ron99 for this post:
 
  #308 (permalink)
Trading Apprentice
Winnipeg Canada
 
Futures Experience: Intermediate
Platform: Metatrader
Favorite Futures: Options
 
Posts: 8 since Oct 2012
Thanks: 3 given, 0 received


ron99 View Post
A 185 call is way too close to ITM to be safe. That's a .1304 delta now.

The crop coming up is the "low" year. Every other year the trees produce more. The crop just harvested was the good or higher production year.

Just for the record , here is a quote from ICO Oct,2012 report. Crop year 2012/13 has now started in all exporting countries, and on the basis of the information
currently available, total production is estimated at around 147 million bags, compared to 134.5 million
bags in 2011/12. The majority of this increase can be attributed to the on‐year in the biennial cycle of
Arabica production in Brazil.
Tx for the input on the call, 185 probably is too close as we are buying a march call months away.

Reply With Quote
 
  #309 (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 currently have KC Feb 200 Call & 135 Put on...so far so good.

Looking at the April GC 1400 Puts... Delta .0296

Reply With Quote
 
  #310 (permalink)
Trading Apprentice
Toronto/Canada
 
Futures Experience: Advanced
Platform: Sierra Charts
Favorite Futures: Options
 
Posts: 25 since Oct 2012
Thanks: 20 given, 5 received



ron99 View Post
Why is it that I get emails telling me there are new posts in the thread then they quit coming even though there are more new posts? It still says I am subscribed to the thread.

They send you a e-mail when there is a new post, then don't send another one until you have logged in & out .

Reply With Quote
The following 3 users say Thank You to Mark59 for this post:

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)
 

Monte Carlo Analysis w/Kevin Davey

Elite only
 

How-to Choose a Futures Broker w/Lynette Lim @ Phillip Capital

Sep 20
 

Alternative Views on Traditional Tools w/Rhonda Jones

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 09:39 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 2017-09-19 in 0.08 seconds with 19 queries on phoenix via your IP 54.225.41.203