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


Selling Options on Futures?
Updated: Views / Replies:641,749 / 6,070
Created: by ron99 Attachments:699

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
 699  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #3331 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,570 since Jul 2011
Thanks: 738 given, 4,405 received
Forum Reputation: Legendary


Zero85 View Post
Woahhh baby! Anybody sell put options on the S&P Index?

We've been raking it in over the last two weeks, I'm loving it!!

I've got some on.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #3332 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 45,899 since Jun 2009
Thanks: 29,116 given, 81,743 received


Zero85 View Post
We've been

Who are "we" ?

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
 
  #3333 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,256 since Jul 2012
Thanks: 1,059 given, 4,101 received



Zero85 View Post
Woahhh baby! Anybody sell put options on the S&P Index?

We've been raking it in over the last two weeks, I'm loving it!!


Awesome you and your group! Hopefully that will continue.

Personally speaking, everytime I've gotten super excited about making money, shortly thereafter I've been paid back with a big drawdown (often a nasty one at that). Hope that doesn't happen to you!

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:
 
  #3334 (permalink)
1.Fibs 2.??? 3.Profit
Puerto Rico
 
Futures Experience: Intermediate
Platform: thinkorswim
Broker/Data: TD Ameritrade
Favorite Futures: ES
 
rmejia's Avatar
 
Posts: 384 since Oct 2010
Thanks: 3,597 given, 420 received


Zero85 View Post
Woahhh baby! Anybody sell put options on the S&P Index?

We've been raking it in over the last two weeks, I'm loving it!!

I sell S&P puts on VIX spikes. At VIX 11... way too much risk for a VIX spike and little premium. Would not be a lot fun to watch the price of the puts go up 10x+ from a silly VIX spike at these levels.

What are you selling, monthlys, weeklys? How many DTE and what Delta?

Attached Thumbnails
Selling Options on Futures?-2014-06-07-tos_charts.png  
Reply With Quote
 
  #3335 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 260 since Oct 2012
Thanks: 126 given, 75 received

True


Zero85 View Post
Woahhh baby! Anybody sell put options on the S&P Index?

We've been raking it in over the last two weeks, I'm loving it!!

This is true, but I wonder when the hammer will fall?? Will there be sell off not too far away????

Reply With Quote
 
  #3336 (permalink)
Elite Member
Dallas, TX
 
Futures Experience: Advanced
Platform: T4, Zaner360, TOS
Broker/Data: DeCarley Trading
Favorite Futures: Options
 
Posts: 104 since Sep 2013
Thanks: 133 given, 50 received


datahogg View Post
This is true, but I wonder when the hammer will fall?? Will there be sell off not too far away????

I agree. The sell off may not come for months though. What is keeping me from selling ES puts is the ROI, compared to other futures options, sucks.

Reply With Quote
 
  #3337 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,256 since Jul 2012
Thanks: 1,059 given, 4,101 received


mu2pilot View Post
I agree. The sell off may not come for months though. What is keeping me from selling ES puts is the ROI, compared to other futures options, sucks.

Even with the low initial ROI, the way ES has been going up, you can sell a 2% ROI and then a few weeks later buy it back at a price that yields a 5+% ROI.


But still, I think a lot of people will be wiped out if and when volatility suddenly spikes...

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
 
  #3338 (permalink)
Elite Member
Dallas, TX
 
Futures Experience: Advanced
Platform: T4, Zaner360, TOS
Broker/Data: DeCarley Trading
Favorite Futures: Options
 
Posts: 104 since Sep 2013
Thanks: 133 given, 50 received


kevinkdog View Post
Even with the low initial ROI, the way ES has been going up, you can sell a 2% ROI and then a few weeks later buy it back at a price that yields a 5+% ROI.

That is true, although you can do the same thing with other futures options, but starting with a much better ROI/Delta ratio. I just ran the ES thru Dudetooth's spreadsheet and you have to go up to a 4 delta to sniff a 2% ROI.

I did some ZM puts this week with a 1 delta and a 3.88 ROI.

Until I run out of other "options" (or until their ROIs improve), I'm avoiding ES for now.

CORRECTION: Based on Friday's ES closing numbers, the lowest delta offering a 2% ROI is 6.96. That is too close to the fire for me.


Last edited by mu2pilot; June 7th, 2014 at 04:34 PM.
Reply With Quote
 
  #3339 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,256 since Jul 2012
Thanks: 1,059 given, 4,101 received


mu2pilot View Post
That is true, although you can do the same thing with other futures options, but starting with a much better ROI/Delta ratio. I just ran the ES thru Dudetooth's spreadsheet and you have to go up to a 4 delta to sniff a 2% ROI.

I did some ZM puts this week with a 1 delta and a 3.88 ROI.

Until I run out of other "options" (or until their ROIs improve), I'm avoiding ES for now.

CORRECTION: Based on Friday's ES closing numbers, the lowest delta offering a 2% ROI is 6.96. That is too close to the fire for me.

Yep, you are right. One thing I have noticed is that I can "flip" ES otpions (when the ROI doubles) much quicker than most others. I suspect that will end when the market starts heading down.

I agree, 2% ROI for a 7 delta is not the best option to sell, unless you need big volume and can't get better ROI elsewhere.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
 
  #3340 (permalink)
Elite Member
Dallas, TX
 
Futures Experience: Advanced
Platform: T4, Zaner360, TOS
Broker/Data: DeCarley Trading
Favorite Futures: Options
 
Posts: 104 since Sep 2013
Thanks: 133 given, 50 received



kevinkdog View Post
Yep, you are right. One thing I have noticed is that I can "flip" ES otpions (when the ROI doubles) much quicker than most others. I suspect that will end when the market starts heading down.

I agree, 2% ROI for a 7 delta is not the best option to sell, unless you need big volume and can't get better ROI elsewhere.

I agree with all this and I'm not arguing with you.

But, the reason why you can flip ES options quicker is because the market is moving in your direction. All I'm saying is that if you trade any other option and it moves in your direction like the ES has, you'll have a very nice ROI in short order. I don't think there is anything special about the ES. It is a result of its recent market movement.

The challenge I remain to have is finding enough, different options to sell. I don't want to be heavy in any one option. I want diversification and I have it to some degree. But my challenge happens when an option moves in my favor and I lock in 5-10% ROI over a couple weeks' time. I can't always replace it with something else that meets my minimum criteria.

For example, right now, I have RB options that, when I sold them, offered a 3.66% ROI and a 33 DTE. Now, 15 days later, I've made 7.53% on capital risked and can expect only .43% over the next 18 days. As soon as I can find something to replace it, I'm going to buy it back in.

I can see the potential for lowering my minimum ROI standards and replacing something like this with even a 1.5% ROI option. But I am having difficulty getting excited about that ROI.

I'm still learning and am still developing my trading plan. I'll get better.

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)

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

May

An overview of volumetric analytical tools w/Sergey Sokolov @ PTMC

Elite only

John Hoagland (TBA)

Elite only

FuturesTrader71 Extended Ask Me Anything (AMA)

Elite only

Pete @ Jigsaw Trading (TBA)

Elite only

John @ No BS Day Trading (TBA)

Elite only

An Afternoon with FIO member Softsoap (being rescheduled)

Elite only
     

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


All times are GMT -4. The time now is 05:28 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@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 2017-05-27 in 0.13 seconds with 20 queries on phoenix via your IP 54.144.39.205