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Selling Options on Futures?
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Selling Options on Futures?

  #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

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  #3192 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 273 since Oct 2012
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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.

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  #3193 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
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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

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  #3194 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 273 since Oct 2012
Thanks: 126 given, 79 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.

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  #3195 (permalink)
Trading for Fun
St Paul, MN, USA
 
Futures Experience: Advanced
Platform: Abacus
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Coffee options

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.

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  #3196 (permalink)
Elite Member
London/UK
 
Futures Experience: Intermediate
Platform: IBs ladder / Market Delta charts
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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.

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  #3197 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
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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

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  #3198 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 273 since Oct 2012
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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.

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  #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, 5 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

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  #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, 5 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

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