Selling Options on Futures? (Page 347) - Options on Futures | futures.io
futures.io futures trading
 

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures


Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,446 / 5,734
Last Reply:2 Hours Ago (01:01 AM) Attachments:642

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
 642  
 
Thread Tools Search this Thread

Selling Options on Futures?

Old July 2nd, 2014, 01:15 PM   #3461 (permalink)
Trading for Fun
Riga Latvia
 
Futures Experience: Intermediate
Platform: Zaner 360
Favorite Futures: commodyties
 
Posts: 83 since Jan 2013
Thanks: 219 given, 59 received


mixpol View Post
vola is mega up

Did you mean that vol increase "eat up" all gain from futures move in my direction?

Reply With Quote
     

Old July 2nd, 2014, 01:17 PM   #3462 (permalink)
Trading Apprentice
Kazan russia
 
Futures Experience: Intermediate
Platform: QST
Broker/Data: Vision
Favorite Futures: CL
 
Posts: 31 since Dec 2013
Thanks: 2 given, 4 received


uuu1965 View Post
Did you mean that vol increase "eat up" all gain from futures move in my direction?

exactly!! skew is working

Reply With Quote
     

Old July 7th, 2014, 03:13 PM   #3463 (permalink)
Elite Member
SLC, UT
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: Futures Options on ES, CL
 
Posts: 4 since Oct 2010
Thanks: 7 given, 4 received


For closing trades that go against you, when do most of you get out? Do you look at the margin requirement during the day or wait until after the close? I get that there are probably arguments to be made both ways but I'm curious how most of you are managing it. Cordier's book talks about some people preferring to wait until the exit conditions are met at the close so that hiccups in the intra-day don't force you out early. Obviously the trade-off to this is when the trade continues to go against you.

I've been watching my positions and placing orders during the day this first little while, but now starting to use the awesome XLS-SPAN by DudeTooth and wondering if it might be a little easier to just check and manage trades each evening after I can download the risk arrays for that day and track the positions there.

I know this was discussed a little bit in the past at least far as exiting losing trades, but I can't find the post.

Reply With Quote
     

Old July 7th, 2014, 03:52 PM   #3464 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,327 since Jul 2011
Thanks: 634 given, 3,905 received


trelum View Post
For closing trades that go against you, when do most of you get out? Do you look at the margin requirement during the day or wait until after the close? I get that there are probably arguments to be made both ways but I'm curious how most of you are managing it. Cordier's book talks about some people preferring to wait until the exit conditions are met at the close so that hiccups in the intra-day don't force you out early. Obviously the trade-off to this is when the trade continues to go against you.

I've been watching my positions and placing orders during the day this first little while, but now starting to use the awesome XLS-SPAN by DudeTooth and wondering if it might be a little easier to just check and manage trades each evening after I can download the risk arrays for that day and track the positions there.

I know this was discussed a little bit in the past at least far as exiting losing trades, but I can't find the post.

I never look at margin requirement changes during the day. Like you said it could reverse.

During the day I am watching the change in premium price.

But if a position is going against me I look at the news to see why it is doing that. If it is a long term fundamental change then I may get out. But that depends on DTE, historical commodity volatility, distance option strike is from futures, spec position on DCOT reports, etc.

Reply With Quote
     
The following 4 users say Thank You to ron99 for this post:
     

Old July 8th, 2014, 01:05 AM   #3465 (permalink)
Elite Member
SINGAPORE
 
Futures Experience: Intermediate
Platform: TDAmeritrade
Favorite Futures: Crude Oil and ES
 
Posts: 2 since May 2014
Thanks: 1 given, 0 received

SPAN Excel Spreadsheet

Futures Edge on FIO
Hi I am relatively new to this Forum but saw some comments that there is a SPAN excel worksheet made available in this Forum.

Can anyone be kind enough to point me to where I can download this excel spreadsheet and provide some comments or direct me on how to use the spreadsheet.

Thanks for any help available.

Reply With Quote
     

Old July 8th, 2014, 06:39 AM   #3466 (permalink)
Trading for Fun
Lancashire UK
 
Futures Experience: Intermediate
Platform: Tradestation, Interactive Brokers, OX
Favorite Futures: ES Z CL EURJPY
 
Posts: 52 since Jan 2013
Thanks: 42 given, 30 received


thinktrader View Post
Hi I am relatively new to this Forum but saw some comments that there is a SPAN excel worksheet made available in this Forum.

Can anyone be kind enough to point me to where I can download this excel spreadsheet and provide some comments or direct me on how to use the spreadsheet.

Thanks for any help available.

There's a thread here:

https://futures.io/options-cfd-trading/29125-pc-span.html

Reply With Quote
     
The following 3 users say Thank You to MGBRoadster for this post:
     

Old July 10th, 2014, 04:12 PM   #3467 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received

Short Strangle

For those who are experienced with the short strangle. After a short strangle is sold ( a far out of the money put and call) generally is it good to make adjustments or just monitor for conditions that will require an exit from a portion or all of the strangle? Does maintenance of delta within a certain range by buying or selling work well??

Reply With Quote
     

Old July 11th, 2014, 04:35 AM   #3469 (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

For the love of strangles


datahogg View Post
For those who are experienced with the short strangle. After a short strangle is sold ( a far out of the money put and call) generally is it good to make adjustments or just monitor for conditions that will require an exit from a portion or all of the strangle? Does maintenance of delta within a certain range by buying or selling work well??

DataHogg,

I sell about 4 to 5 of these each month. I look for an accumulation or distribution price action to justify even considering the trade or at the least slow moving trend action. After that I trade time, the shorter the better for me. But definitely a minimum of 28 DTE. Next it is probability, over 90% please. And last I look for some volatility to give me an adequate return for risk.

I manage my strangles aggressively. First by trading the futures every few days when there is an opportunity to scalp. This provides a buffer and some padding or extra profit.

But then when things don't go to plan I try to move quickly. So here is an example Soyabeans SQ14. I sold 1600 and 1260 at 65 DTE. We know what has happened recently in SQ14 with it last closing near 12.36.

So what did I do...well I saw the distribution pattern was ending and when it cross below the 75dma I sold 1460. Then when it confirmed the lower high falling below 1340 I sold 1420. Then when it broke below 1300 which I had believed would hold I sold 1320. And finally when it broke below 1265 I sold 1300 buying back the 1660 puts. So now the trade is all calls.

There are still 10 DTE. So the game is not finished.

What I am discovering through a few of my trading buddies is that I need to learn to use the greeks more to manage my trades and just selling options is not the only solution and that had I purchased some deep OTM puts as part of this campaign I might have come through further ahead.

Cheers,
BlurRoo

Reply With Quote
     
The following 2 users say Thank You to BlueRoo for this post:
     

Old July 11th, 2014, 10:03 AM   #3470 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received



BlueRoo View Post
DataHogg,

.

I manage my strangles aggressively. First by trading the futures every few days when there is an opportunity to scalp. This provides a buffer and some padding or extra profit.

Cheers,
BlurRoo


When trading the futures how does this relate to the strangle? Also sounds like you move a short put/call when it is
threatened?

Reply With Quote
     

Reply



futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures > Selling Options on Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Al Brooks: Stop Losing when a Good Trade goes Bad, Correcting Mistakes

Elite only
 

Trading Technologies: ADL hands-on

Dec 13

Normal webinar schedule resumes after the holidays

January

Ernie Chan: Risk Management

Elite only

Dedicated Trading Servers: Advantages/Disadvantages w/sam028

Elite only

An Afternoon with FIO member Massive I

Elite only

Leo Murphy: TBA

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 12:00 PM
Recommend futures, options Broker? sam1197 Brokers and Data Feeds 17 March 27th, 2013 01:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 05:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 01:40 PM
Zen-Fire Futures options tici88 Brokers and Data Feeds 1 July 30th, 2011 10:16 AM


All times are GMT -4. The time now is 03:41 AM.

Copyright © 2016 by 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 2016-12-09 in 0.18 seconds with 20 queries on phoenix via your IP 50.16.17.16