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Selling Options on Futures?
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Created: by ron99 Attachments:737

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Selling Options on Futures?

  #3351 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
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Zero85 View Post
This is good, very good! Can you give us a heads up if your sold puts or calls on those commodities/indexes?
Just curious how you positioned, because I couple of your key spots are my targets as well going into next week.

My point in showing that table was 1) showing roughly how I diversify and 2) showing ROIs that I am currently getting. Sharing more than that doesn't add to the discussion, which was focused on ROIs and diversifying.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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  #3352 (permalink)
Elite Member
Dallas, TX
 
Futures Experience: Advanced
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Broker/Data: DeCarley Trading
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Zero85 View Post
Ugh, you're way to involved in this ROI metric.
Here's what you need to understand to improve your trading:
THE TREND IS YOUR FRIEND

You're way too technical. Keep things simple, because it is. Here's my number one rule:

PROTECT CASH COLLATERAL, MAKE MONEY CONSISTENTLY.

That's it, don't care how I get there, as long as I get there and sleep soundly at night.

You've obviously got it figured out. I wish you all the best.


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  #3353 (permalink)
Trading Apprentice
NYC +NY/ United States
 
Futures Experience: Advanced
Platform: OptionsXpress
Favorite Futures: Future Option Selling
 
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kevinkdog View Post
Cognitive dissonance

Not so, my trading style is all about flexibility. All I'm saying is that normally I wouldn't trade in those commodities, but when a significant opportunity is "given", such as Feb Nat Gas, I'll take it.

I can see from your attempt at psychanalytical analysis, you must have lost on that one, kevindog? Am I correct Dr. Freud? I compliment you and you shove it in my face. Market Wizard with nearly 1,500 posts huh, you spend more time on here than trading. My turn at psychananalysis: Kevindog= Narcissistic Personality Disorder ( NPD)


Last edited by Zero85; June 8th, 2014 at 07:18 AM.
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  #3354 (permalink)
Trading Apprentice
NYC +NY/ United States
 
Futures Experience: Advanced
Platform: OptionsXpress
Favorite Futures: Future Option Selling
 
Posts: 26 since Mar 2014
Thanks: 13 given, 7 received


kevinkdog View Post
My point in showing that table was 1) showing roughly how I diversify and 2) showing ROIs that I am currently getting. Sharing more than that doesn't add to the discussion, which was focused on ROIs and diversifying.

No problem. This forum is about sharing information and learning from others ideas. You want to keep things to yourself, go for it.

Do me a favor, and don't quote my posts from this point on. I'm here to learn, and share my years of experience. Thanks!

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  #3355 (permalink)
Trading Apprentice
NYC +NY/ United States
 
Futures Experience: Advanced
Platform: OptionsXpress
Favorite Futures: Future Option Selling
 
Posts: 26 since Mar 2014
Thanks: 13 given, 7 received


mu2pilot View Post
You've obviously got it figured out. I wish you all the best.


Sent from my iPad using Tapatalk HD


No, my rules change and get modify under different circumstances that the market throws out. I don't have a set rulebook. You want to chase ROI, as that's the new flavor of the moment, go for it! Oh, a word of advice, watch out for selling coffee calls. Those offer great ROI, but the commodity is so manipulated, you can get run over easily in a matter of days.

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  #3356 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,717 since Jul 2011
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Zero85. that was totally uncalled for. If you can't be civilized then don't post here.

Everybody has different ways of doing things that work for them. Let's respect that.

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  #3357 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,717 since Jul 2011
Thanks: 792 given, 4,759 received
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mu2pilot View Post
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.

If your expected ROI on the RB is only .43% then you surely can find something else that will get you a higher return than that. That is what I am doing, dropping those with low returns left on them and moving on.

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  #3358 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,717 since Jul 2011
Thanks: 792 given, 4,759 received
Forum Reputation: Legendary

As far as ES, the fundamentals don't support a big crash. Only the technicals.

Fundamentals always win in the long run over technicals in all commodities.

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  #3359 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,368 since Jul 2012
Thanks: 1,130 given, 4,340 received


Zero85 View Post
Not so, my trading style is all about flexibility. All I'm saying is that normally I wouldn't trade in those commodities, but when a significant opportunity is "given", such as Feb Nat Gas, I'll take it.

I can see from your attempt at psychanalytical analysis, you must have lost on that one, kevindog? Am I correct Dr. Freud? I compliment you and you shove it in my face. Market Wizard with nearly 1,500 posts huh, you spend more time on here than trading. My turn at psychananalysis: Kevindog= Narcissistic Personality Disorder ( NPD)


You missed my point. You say you won't trade widowmaker commodities, but that is exactly what you did. You might have seen that Nat Gas trade was a "given," but it really wasn't. There was a lot of risk in that trade - you just did not experience it since the price rise stopped.

My point that thinking you are trading without risk, when in reality you taking on risk, is going to cause problems eventually.

Sorry if you think I shoved it in your face - that was not my intention.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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  #3360 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,368 since Jul 2012
Thanks: 1,130 given, 4,340 received



Zero85 View Post
No problem. This forum is about sharing information and learning from others ideas. You want to keep things to yourself, go for it.

Do me a favor, and don't quote my posts from this point on. I'm here to learn, and share my years of experience. Thanks!

You can always put me on ignore if you wish.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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