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Selling Options on Futures?
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Selling Options on Futures?

  #3231 (permalink)
Elite Member
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Physicsman's Avatar
 
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OEC

OEC = Open E-Cry

They are part of Gain Capital. Standard commision is $1.25, however there is an overnight carrying fee. You can negotiate with them to pay a higher commission in exchange for no overnight carrying fee. What rate you can get depends on your volume and how good a negotiator you are.

Good hunting!

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  #3232 (permalink)
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Physicsman View Post
You can negotiate with them to pay a higher commission in exchange for no overnight carrying fee.

You can also go through another IB that offers the OEC platform and you should be able to get almost the same commission. OEC waives the fee if you are working through another IB and not directly with OEC. I went through a smaller IB and got OEC's standard commission with no overnight carrying fees.


Last edited by Dudetooth; May 2nd, 2014 at 08:32 AM.
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  #3233 (permalink)
Market Wizard
Cleveland, OH
 
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This is interesting. Yesterday when I had to call in to confirm my wire withdrawal from OX they asked why I was pulling out my money. One reason I gave them was that they charged higher than SPAN minimum margin.

Today they lowered margin required on some commodities. CL from 15% to 10 (it was 25% 2 weeks ago). W & NG & RB & HO from 10% to 0. They are still 30% on KC. 10% on LC & LH.

A couple of months ago I complained about this and they lowered milk from 20% to 0. But they didn't lower any others.

So they lost my business because they wanted too long. That will teach them.

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  #3234 (permalink)
Trading for Fun
Huntsville AL/USA
 
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ron99 View Post
This is interesting. Yesterday when I had to call in to confirm my wire withdrawal from OX they asked why I was pulling out my money. One reason I gave them was that they charged higher than SPAN minimum margin.

Today they lowered margin required on some commodities. CL from 15% to 10 (it was 25% 2 weeks ago). W & NG & RB & HO from 10% to 0. They are still 30% on KC. 10% on LC & LH.

A couple of months ago I complained about this and they lowered milk from 20% to 0. But they didn't lower any others.

So they lost my business because they wanted too long. That will teach them.

I noticed that my buying power jumped up today. Thank you, Ron!!!!

I still need to make the switch to DeCarley. I have done the demo and the only thing that bothered me was not seeing the margin requirements. Since then I have down loaded the Excel PC SPAN calculator. It is awesome. Thank y'all for developing that.


Last edited by Raven; May 2nd, 2014 at 11:55 AM. Reason: typo
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  #3235 (permalink)
Market Wizard
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Raven View Post
I noticed that my buying power jumped up today. Thank you, Ron!!!!

I still need to make the switch to DeCarley. I have done the demo and the only thing that bothered me was not seeing the margin requirements. Since then I have down loaded the Excel PC SPAN calculator. It is awesome. Thank y'all for developing that.

You can leave your OX account open and still use their Trade Calculator.

But Zaner360/OEC now has a Trade Calculator.

Click on Trading, then select Margin Calculator. Remember that Net should be a negative number for short options.

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  #3236 (permalink)
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Is Implied Volatility a key issue in trading Futures Options ?

A well-known Stock Option website has the mantra - "If IV of a stock is high relative to its recent IV history, be a
Volatility seller. "

Any comments ?

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  #3237 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
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Collator View Post
Is Implied Volatility a key issue in trading Futures Options ?

A well-known Stock Option website has the mantra - "If IV of a stock is high relative to its recent IV history, be a
Volatility seller. "

Any comments ?

"If IV of a stock is high relative to its recent IV history, be a
Volatility seller. "

or another possibility

"If IV of a stock is high relative to its recent HV history, be a
Volatility seller. "

I think that this varies with the individual. These naked puts are far out of the money. So one line of thought is
that you sell puts as you have the margin available.

A second method will sell puts when IV is higher than average generally during or after a sell off or pull back.
But you might have to wait for this (maybe wait too long.)

I am sure RON99 could add valuable information to this question.

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  #3238 (permalink)
Market Wizard
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Collator View Post
Is Implied Volatility a key issue in trading Futures Options ?

A well-known Stock Option website has the mantra - "If IV of a stock is high relative to its recent IV history, be a
Volatility seller. "

Any comments ?

Depends how far OTM you are selling options. The further OTM you are the less important IV is.

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  #3239 (permalink)
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Collator View Post
Is Implied Volatility a key issue in trading Futures Options ?

A well-known Stock Option website has the mantra - "If IV of a stock is high relative to its recent IV history, be a
Volatility seller. "

Any comments ?

Collator.
Volatility is an interesting animal. IV above HV generally says options are expensive and then you should be a seller. In commodities one of the other factors is seasonality. The thing I have been noticing lately is that high volatility generally indicates the possibility of a disconnect with seasonality. High volatility is also about probability I believe and you can also almost say the same thing about seasonality. If the seasonal pattern is intact then probability is high. I wonder if moderate volatility and an intact seasonal pattern provides a easier ride through to expiry. You can miss out making money waiting for volatility to spike. Then the best result may be to recognize when volatility tends to rise based on a seasonal pattern that is intact. Well then you would think you have the best of both worlds.
Cheers, BlueRoo

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  #3240 (permalink)
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Kazan russia
 
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just thinking about Gyazo - b64fe44705060a6eed18b53a00eb9aa5.png aug cl spread ) who wanna discus ?
my thoughts about jul exp within 92/105

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