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Selling Options on Futures?


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Selling Options on Futures?

  #321 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
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britkid99 View Post
I totally agree with you regarding the fiscal cliff "fix" Ron, likely to be a non event and then send commodities/stocks up. I am currently 100% cash at the moment.

I am bullish regarding Oil, my delta studies show accumaltion every time we hit a pivot low. I actually had some long calls on prior to the election which I covered after the push to 89 failed. Seasonality and geo-political outlook also supports higher prices ahead.

The latest Option Seller newsletter is suggesting puts on Gold and RBOB. The problem i have with gold is the margins with IB. As for RBOB the volume and open interest seems all but non-existant for OTM strikes.

Brit

I have a lot in cash right now.

The ROR on GC with exchange minimum margin is low now. Hopefully with the margin drop it will get back to a decent level.

I have been able to get RB options on. You just have to be patient. Put in an ask and sometimes will trade. But if you have to bail you will give up a lot to get out.

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  #322 (permalink)
t jay
Winnipeg Canada
 
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Hey guys, why don't you borrow me some money. I'm just about all out. Lots of option selling going on here, short corn , live cattle strangle , short copper , I am still short energy(supply and demand thing). Got RB options Friday, I know I have to work on my timing.

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  #323 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
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t jay View Post
Hey guys, why don't you borrow me some money. I'm just about all out. Lots of option selling going on here, short corn , live cattle strangle , short copper , I am still short energy(supply and demand thing). Got RB options Friday, I know I have to work on my timing.

When you say short copper do you mean futures? Because there is almost no trading in copper options.

Do you still have those HO calls?

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  #324 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785

A new monthly ICE softs newsletter is out.

https://links.intercontinentalexchange.eb2b.vtrnz.com/ui/modules/display/displayErr.jsp

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  #325 (permalink)
t jay
Winnipeg Canada
 
Posts: 9 since Oct 2012
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Yes , I still have my 310 Dec HO calls. 4 trading days left , am still bearish on Energy in general so see what happens. Also sold a couple of Dec 384 Copper calls. Went down much like you said about RB options, Did not sell for what I wanted , but not too far away.
One thing I place a lot of value in but is not discussed here a lot is Market View/Sentiment. Still bearish because despite Middle East trauma , and other factors price of Oil really hasn't done to much. Up 2.5 , then down 2.5.
Chime in boys , your thoughts and opinions on this little discussed trend indicator.

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  #326 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785


t jay View Post
Yes , I still have my 310 Dec HO calls. 4 trading days left , am still bearish on Energy in general so see what happens. Also sold a couple of Dec 384 Copper calls. Went down much like you said about RB options, Did not sell for what I wanted , but not too far away.
One thing I place a lot of value in but is not discussed here a lot is Market View/Sentiment. Still bearish because despite Middle East trauma , and other factors price of Oil really hasn't done to much. Up 2.5 , then down 2.5.
Chime in boys , your thoughts and opinions on this little discussed trend indicator.

How do you measure Market View/Sentiment?

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  #327 (permalink)
 britkid99 
Derby UK
 
Experience: Intermediate
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ron99 View Post
How do you measure Market View/Sentiment?

When all the Main Stream Media and all the brokers/advisors are saying one thing - Do the opposite.

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  #328 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
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britkid99 View Post
When all the Main Stream Media and all the brokers/advisors are saying one thing - Do the opposite.

Like when they were saying to sell Apple stock?

But it's tough to get consensus on what people are thinking for many commodities.

I do track changes in OI and price. That does show trends. So I use it a little. I just don't put a lot of trust in it.

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  #329 (permalink)
t jay
Winnipeg Canada
 
Posts: 9 since Oct 2012
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My take on it is when a bullish or bearish report or event happens and it fails to move the market in a way that something of that magnitude should the market sentiment is that there is more room to move in the prevailing direction so the market will go there regardless of fundamental changes.
Good example is the grains. Sept and Oct USDA reports very bullish , what was the trend in the fall , bearish. Not sure why but that's what it was. In Market Wizards a couple of the traders there discuss it at length.
Happy Thanksgiving to youall (is that a word ).

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  #330 (permalink)
 britkid99 
Derby UK
 
Experience: Intermediate
Platform: Sierra Chart
Trading: Futures Options, CL
Posts: 175 since Jun 2009
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ron99 View Post
Like when they were saying to sell Apple stock?

But it's tough to get consensus on what people are thinking for many commodities.

I do track changes in OI and price. That does show trends. So I use it a little. I just don't put a lot of trust in it.

Yes, i quite like Apple at these prices especially going in to their busiest period of the year.
Dec 550 puts fetch 14.21 which would give a downside protection to 536 if put to and $1420 odd in the pocket if not, for tying up 55,000 or so for a month.

EDIT: This could be a use for some of the excess margin if not currently needed. Especially if using weekly's which would only tie you up for a week at a time.

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