Selling Options on Futures? - Options on Futures | futures.io
futures io futures trading


Selling Options on Futures?
Started: by ron99 Views / Replies:610,087 / 5,869
Last Reply: Attachments:659

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike

Reply
 659  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #3161 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 259 since Oct 2012
Thanks: 126 given, 75 received

High


New Level View Post
Well I haven't made a real money trade yet but after reading this whole thread I feel like I've been in the trenches with you guys for a while. Thanks to all who have contributed! I found options through tasty trade and then found this thread and I've been consuming everything I can find on options and paper trading ever since. I'll be opening an account with DeCarley soon and plan on keeping things very small and manageable until I have some experience under my belt. As I progress I hope to have some substance to add to the conversation here. I noticed that DeCarley has several levels of service/commissions , from full service at $35 to self directed Pro at $7, as a new trader would a higher service level be worth it?

These are excessively high commissions.

Reply With Quote
The following user says Thank You to datahogg for this post:
 
  #3162 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,236 since Jul 2012
Thanks: 1,046 given, 4,078 received


New Level View Post
Well I haven't made a real money trade yet but after reading this whole thread I feel like I've been in the trenches with you guys for a while. Thanks to all who have contributed! I found options through tasty trade and then found this thread and I've been consuming everything I can find on options and paper trading ever since. I'll be opening an account with DeCarley soon and plan on keeping things very small and manageable until I have some experience under my belt. As I progress I hope to have some substance to add to the conversation here. I noticed that DeCarley has several levels of service/commissions , from full service at $35 to self directed Pro at $7, as a new trader would a higher service level be worth it?

I suggest you talk to Carley directly to get commission rates.There are a lot of options with different FCMs and different platforms, many of which will impact your cost.

Something else to consider is how they charge commissions. Some brokers charge all at the beginning, and some charge both for entry and exit. That may be an important consideration if you exit before expiration.

Another issue to investigate is how "option selling friendly" the broker is. Some deep discount brokers I found were dirt cheap, but did not want option sellers (they felt it was too much risk). Not many brokers are accomodating to option selling.

I can tell you from my personal experience that DeCarley overall prices are very reasonable. Service has been world class. That alone is worth it, in my opinion.

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:
 
  #3163 (permalink)
Elite Member
Amsterdam
 
Futures Experience: None
Platform: J.A.R.V.I.S.
Favorite Futures: N/A
 
Cogito ergo sum's Avatar
 
Posts: 193 since Jul 2010
Thanks: 211 given, 156 received



New Level View Post
Well I haven't made a real money trade yet but after reading this whole thread I feel like I've been in the trenches with you guys for a while. Thanks to all who have contributed! I found options through tasty trade and then found this thread and I've been consuming everything I can find on options and paper trading ever since. I'll be opening an account with DeCarley soon and plan on keeping things very small and manageable until I have some experience under my belt. As I progress I hope to have some substance to add to the conversation here. I noticed that DeCarley has several levels of service/commissions , from full service at $35 to self directed Pro at $7, as a new trader would a higher service level be worth it?

If you intend to execute a specific trading system in a live environment (such as selling OTM options) with predetermined rules I personally don't see any real value added to go full service. In addition, a $35 RT commission for a "small account" can destroy your theoretical edge and can negatively skew your returns depending on your strategy and trade size. I recommend that you model your paper trades with both commission structures to see where you stand from a pure financial point of view.

Broker selection is a different discussion altogether.

Reply With Quote
The following 2 users say Thank You to Cogito ergo sum for this post:
 
  #3164 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,236 since Jul 2012
Thanks: 1,046 given, 4,078 received


Cogito ergo sum View Post
If you intend to execute a specific trading system in a live environment (such as selling OTM options) with predetermined rules I personally don't see any real value added to go full service. In addition, a $35 RT commission for a "small account" can destroy your theoretical edge and can negatively skew your returns depending on your strategy and trade size. I recommend that you model your paper trades with both commission structures to see where you stand from a monetary point of view. As for selecting a broker is a completely different discussion alltogether.

Good points. Make sure you don't pay for more than what you need.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
 
  #3165 (permalink)
Trading Apprentice
NYC +NY/ United States
 
Futures Experience: Advanced
Platform: OptionsXpress
Favorite Futures: Future Option Selling
 
Posts: 26 since Mar 2014
Thanks: 13 given, 7 received

Futures Edge on FIO

What value do you place on the webinars on FIO?

 
Hmm, so things got interesting after Friday's market moving jobs data report. Gold shot up quite a bit, the S&P Index took it a sharp dive, and unrelated to the market, coffee futures skyrockets over $10.00 in a day. Nasdaq was rocked too.

Looks like volatility is back in action, creating some good option selling premium. How are you guys going to play it?

I'm thinking of selling some S&P puts, and perhaps a couple of coffee calls at the very high range, (over 300). Time to make hay fellas!

Reply With Quote
The following user says Thank You to Zero85 for this post:
 
  #3166 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 259 since Oct 2012
Thanks: 126 given, 75 received

Last Thursday 04/03


Zero85 View Post
Hmm, so things got interesting after Friday's market moving jobs data report. Gold shot up quite a bit, the S&P Index took it a sharp dive, and unrelated to the market, coffee futures skyrockets over $10.00 in a day. Nasdaq was rocked too.

Looks like volatility is back in action, creating some good option selling premium. How are you guys going to play it?

I'm thinking of selling some S&P puts, and perhaps a couple of coffee calls at the very high range, (over 300). Time to make hay fellas!

I sold some NQ NQM4 2810 puts @ $76.00. 76 DTE. Delta=0.022 , IM= 417 (Per TOS).

Reply With Quote
The following 2 users say Thank You to datahogg for this post:
 
  #3167 (permalink)
Banned: Rude behavior, doesn't want to be here
Zug / Switzerland
 
Futures Experience: Advanced
Platform: Different
Favorite Futures: Option and Futures
 
Stan Dan's Avatar
 
Posts: 67 since Sep 2013
Thanks: 64 given, 35 received


datahogg View Post
I sold some NQ NQM4 2810 puts @ $76.00. 76 DTE. Delta=0.022 , IM= 417 (Per TOS).

And what is your stop loss? Level on the script or how do you define your stop loss when shorting any options?

Reply With Quote
The following user says Thank You to Stan Dan for this post:
 
  #3168 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 259 since Oct 2012
Thanks: 126 given, 75 received

Stop Loss


Stan Dan View Post
And what is your stop loss? Level on the script or how do you define your stop loss when shorting any options?

My drop dead stop loss is that given by RON99. But I may make adjustment before that.

Reply With Quote
 
  #3169 (permalink)
Elite Member
hk
 
Futures Experience: Intermediate
Platform: NinjaTrader
 
Posts: 48 since Apr 2010
Thanks: 16 given, 12 received


kevinkdog View Post
I suggest you talk to Carley directly to get commission rates.There are a lot of options with different FCMs and different platforms, many of which will impact your cost.

Something else to consider is how they charge commissions. Some brokers charge all at the beginning, and some charge both for entry and exit. That may be an important consideration if you exit before expiration.

Another issue to investigate is how "option selling friendly" the broker is. Some deep discount brokers I found were dirt cheap, but did not want option sellers (they felt it was too much risk). Not many brokers are accomodating to option selling.

I can tell you from my personal experience that DeCarley overall prices are very reasonable. Service has been world class. That alone is worth it, in my opinion.

Any option selling friendly broker suggestion ?

Sent from my GT-N7105 using Tapatalk

Reply With Quote
 
  #3170 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,236 since Jul 2012
Thanks: 1,046 given, 4,078 received



energetic View Post
Any option selling friendly broker suggestion ?

Sent from my GT-N7105 using Tapatalk

I use DeCarley (through Gain) and OptionsExpress. I'm happy with both.

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

PTMC Protrader Platform First Look w/Sergey Sokolov

Elite only

Spring Grains Outlook w/Sean Lusk @ Walsh Trading

Elite only

FIO Video Journal Challenge featuring NinjaTrader ($2,000+ of prizes)

April

Process above all else w/Anthony Crudele @ Futures Radio Show

Elite only

Machine Learning - Quantitative Trading w/Martin Froehler @ Quantiacs

Elite only

Market Dynamics w/Peter Davies @ Jigsaw Trading

Elite only

Ask Me Anything w/Patrick Rooney @ Trading Technologies

Apr 18

Ask Me Anything w/FuturesTrader71

Apr 19

Machine Learning w/Kris Longmore

Elite only

Market Analysis w/Dave Forss

Apr 25

Introducing iSystems with Stage 5 Trading

Apr 27
     

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 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 Brokers and Data Feeds 1 July 30th, 2011 09:16 AM


All times are GMT -4. The time now is 03:13 AM.

no new posts
Page generated 2017-03-26 in 0.14 seconds with 20 queries on phoenix via your IP 54.87.65.140