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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,597 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old March 1st, 2014, 12:37 PM   #3091 (permalink)
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uuu1965 View Post
Would you applay the same margin rules (3x excees) for option spread trading (sell nearest strike and buy futher one)?

P.S. I would like to say thanks for DeCarley broker service advice

Yes because if the margin has become >3X excess on a spread the futures have really moved quite a distance against you. More than just a naked option.

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Old March 2nd, 2014, 12:57 AM   #3092 (permalink)
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njr1 View Post
Hi there,

I also sell naked option and am also looking for someone who follows the same approach as what I do. Basically, I use the approach outlined in "James_Cordier,_Michael_Gross: The_Complete_Guide_To_Selling_Options"

I looked at the link that you suggested in your profile but unfortunately I don't read Russian. Do you normally post on here or other forums. I'm keen to bounce ideas off each other regarding possible trade setup etc......

that was my little expirience, next time i'll post here
p.s. google translator is your helper

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Old March 2nd, 2014, 04:12 AM   #3093 (permalink)
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Help me out, I am confused. I believe I am misunderstanding something here.

With KCK14 closing at 180.30 on Friday, I decided to buy one ITM KCK41800C at 14.23 for $5,336.25. Commission would be $5.27

Let's say I hold this option until expiration, at what price would KCK14 need to be trading at for me to be profitable?

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Old March 2nd, 2014, 06:42 AM   #3094 (permalink)
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MJ888 View Post
Help me out, I am confused. I believe I am misunderstanding something here.

With KCK14 closing at 180.30 on Friday, I decided to buy one ITM KCK41800C at 14.23 for $5,336.25. Commission would be $5.27

Let's say I hold this option until expiration, at what price would KCK14 need to be trading at for me to be profitable?

the KC should stay higher than 180+14.23=194.23 on expiration

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Old March 2nd, 2014, 09:05 AM   #3095 (permalink)
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mixpol View Post
the KC should stay higher than 180+14.23=194.23 on expiration

And between 180 and 194.23, you'll lose some, but not all, of the premium you paid.

Below 180 you are out the full amount.

What is your plan with this trade, MJ ?

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Old March 2nd, 2014, 12:29 PM   #3096 (permalink)
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St Paul, MN, USA
 
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Azucar!

The table below is from iVolatility.com. Sugar is seeing 1-year highs in implied volatility due to the heat/no rain story in Brazil, which sent coffee soaring a month ago.

So... NG, KC and SB have all had big price and volatility moves recently and even ZW (Chicago wheat) and HE/LH (Lean Hogs) have had moderate pops in IV in the last few days. For those who like to see higher IV before selling options, it's good to see more candidates. For a while, NG was the best game in town, but you risked getting your face ripped off.

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Selling Options on Futures?-sugar.png  
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Old March 2nd, 2014, 01:48 PM   #3097 (permalink)
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mixpol View Post
that was my little expirience, next time i'll post here
p.s. google translator is your helper

Hey Mixpol,

Cool, I'll look to post on this forum as well....You looking at anything particular in the coming week?

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Old March 2nd, 2014, 03:21 PM   #3098 (permalink)
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kevinkdog View Post
And between 180 and 194.23, you'll lose some, but not all, of the premium you paid.

Below 180 you are out the full amount.

What is your plan with this trade, MJ ?

Kevin,

I am not actually in this trade. I was using the trade calculator on OptionsXpress and the profit and loss chart gave me odd info. So I was just wondering if the info was wrong or was I missing something.

The way you explained it was what I thought it was, it was just that OptionsXpress was wrong and was confusing me.

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Old March 2nd, 2014, 03:33 PM   #3099 (permalink)
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MJ888 View Post
Kevin,

I am not actually in this trade. I was using the trade calculator on OptionsXpress and the profit and loss chart gave me odd info. So I was just wondering if the info was wrong or was I missing something.

The way you explained it was what I thought it was, it was just that OptionsXpress was wrong and was confusing me.

You are right, their profits calculations are off by a factor of 10. It is because they think the price right now is 1800. It is 180.

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Old March 2nd, 2014, 03:35 PM   #3100 (permalink)
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Thanks for verifying that Kevin

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