Selling Options on Futures? (Page 320) - Options on Futures | futures.io
futures.io futures trading
 

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures


Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,890 / 5,728
Last Reply:11 Hours Ago (05:26 PM) Attachments:642

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
 642  
 
Thread Tools Search this Thread

Selling Options on Futures?

Old April 12th, 2014, 05:27 PM   #3191 (permalink)
Trading for Fun
Brisbane, Queensland, Australia
 
Futures Experience: Intermediate
Platform: OX, Z360, Excel
Broker/Data: DeCarley
Favorite Futures: Futures and Future Options
 
Posts: 121 since Aug 2013
Thanks: 75 given, 96 received

Different Genres of Diversity


kevinkdog View Post
I am slowly migrating from a lot of diversification (5% max margin per instrument, maybe sell 8-10 instruments) to higher percentages, less instruments. Maybe that will help...

Kevinkdog,

I think I am meeting you half way from the other end of rarely trading anything other than CL. Over 12 months ago this thread inspired me to look for diversification. There is a great deal to learn about different commodities. They are all different and have different features. No where near the simplicity of equity options. But those commodities mentioned such a S, HE, C and others do offer opportunities. I think it is about a mix of skills. Diversity is not just about different assets. It is about different trading strategies and techniques. I would even say technical analysis can be a great help to the option seller. I have also found starting to understand the demand and supply of a commodity, current market factors with seasonal patterns provides confidence for trades a signal minded approach to DOTM selling might others ignore. The journey and game is forever entertaining.

Blueroo

Reply With Quote
     
The following 2 users say Thank You to BlueRoo for this post:
     

Old April 13th, 2014, 08:45 AM   #3192 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received

Simulation


mixpol View Post
Gyazo - b0ac61d7a38f3629f2afc19e03ac6d71.png i'm gonna think to put these spreads in

It appears you are using the TOS platform. This is a complex position with a lot of commissions.
I think it would be better to use simulation for this before using real money. You might be surprised at how
much you can lose.

Reply With Quote
     

Old April 13th, 2014, 11:51 AM   #3193 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
Thanks: 2 given, 4 received



datahogg View Post
It appears you are using the TOS platform. This is a complex position with a lot of commissions.
I think it would be better to use simulation for this before using real money. You might be surprised at how
much you can lose.

i've had such trades in demo and wrote results in my topic ???? ???????? ??????? ?? ???? ? ???????? 400?

it has greeks numbers much better than naked options, also look at ROI! fees in Vision are pretty comfortable 9 per round

Reply With Quote
     
The following user says Thank You to mixpol for this post:
     

Old April 13th, 2014, 04:23 PM   #3194 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received

Will try.


mixpol View Post
i've had such trades in demo and wrote results in my topic ???? ???????? ??????? ?? ???? ? ???????? 400?

it has greeks numbers much better than naked options, also look at ROI! fees in Vision are pretty comfortable 9 per round

OK thanks for the info although I don't speak Russian. I will try this in simulation.

Reply With Quote
     

Old April 13th, 2014, 11:26 PM   #3195 (permalink)
Trading for Fun
St Paul, MN, USA
 
Futures Experience: Advanced
Platform: Abacus
Broker/Data: RJO, Interactive Brokers
Favorite Futures: Commodity Futures & Options
 
Posts: 189 since Jan 2014
Thanks: 108 given, 171 received

Coffee options

Futures Edge on FIO

Are you a NinjaTrader user?

 
FWIW, the implied volatility in coffee is at a 9+ year high (my records only go back to late 2004) and there is a pretty healthy call skew, i.e. you can sell 100% or more OTM at 15-20 IV points higher than ATM, which is currently around 55%.

Of course, given the drought in Brazil and the annual frost scare, you might have some sleepless nights and a depleted bank account if prices and IV spike from their already steep levels. Kind of like natural gas did in Jan/Feb.

Reply With Quote
     

Old April 14th, 2014, 08:14 AM   #3196 (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


CafeGrande View Post
FWIW, the implied volatility in coffee is at a 9+ year high (my records only go back to late 2004) and there is a pretty healthy call skew, i.e. you can sell 100% or more OTM at 15-20 IV points higher than ATM, which is currently around 55%.

Of course, given the drought in Brazil and the annual frost scare, you might have some sleepless nights and a depleted bank account if prices and IV spike from their already steep levels. Kind of like natural gas did in Jan/Feb.


re NG i lost loads on the increase in margin calls - i had money to cover the ramp in vol/premiums but didnt factor in margin increases by the exchange. so its important to be aware of the possibility of these also.

Reply With Quote
     
The following user says Thank You to rosho01 for this post:
     

Old April 14th, 2014, 08:23 AM   #3197 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
Thanks: 2 given, 4 received


rosho01 View Post
re NG i lost loads on the increase in margin calls - i had money to cover the ramp in vol/premiums but didnt factor in margin increases by the exchange. so its important to be aware of the possibility of these also.

exactly! in KC i'd preffer to sell puts

Reply With Quote
     

Old April 14th, 2014, 10:22 AM   #3198 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received

Gamma


mixpol View Post
Gyazo - b0ac61d7a38f3629f2afc19e03ac6d71.png i'm gonna think to put these spreads in

The thing that appears as a negative for this spread is the high negative gamma ( -42) . High negative gamma is like
sitting on the top of a ball. Any direction you go you will lose. Negative gamma is bad for a positive theta spread.

Reply With Quote
     
The following user says Thank You to datahogg for this post:
     

Old April 14th, 2014, 10:40 AM   #3199 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
Thanks: 2 given, 4 received


datahogg View Post
The thing that appears as a negative for this spread is the high negative gamma ( -42) . High negative gamma is like
sitting on the top of a ball. Any direction you go you will lose. Negative gamma is bad for a positive theta spread.

if u r selling naked options you also have gamma<0, so no free cheese

Reply With Quote
     

Old April 17th, 2014, 12:24 AM   #3200 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
Thanks: 2 given, 4 received



mixpol View Post
i guess crude oil may exp within 104/97.5! and 110 jun is good to sell! in real acc we may short 114call for greater security


here you are! settl may CL =103.76 !!
congrats u all

my analize in jun CL exp in 106/93 range!! lets see

Reply With Quote
     

Reply



futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures > Selling Options on Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

NinjaTrader 8: Features and Enhancements, Tips and Tricks

Dec 6
 

Al Brooks: Stop Losing when a Good Trade goes Bad, Correcting Mistakes

Elite only
 

Trading Technologies: Algo Design Lab hands-on

Dec 13
     

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 12:00 PM
Recommend futures, options Broker? sam1197 Brokers and Data Feeds 17 March 27th, 2013 01:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 05:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 01:40 PM
Zen-Fire Futures options tici88 Brokers and Data Feeds 1 July 30th, 2011 10:16 AM


All times are GMT -4. The time now is 04:39 AM.

Copyright © 2016 by 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 2016-12-07 in 0.15 seconds with 20 queries on phoenix via your IP 54.159.239.251