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


Selling Options on Futures?
Started: by ron99 Views / Replies:597,704 / 5,837
Last Reply: Attachments:654

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
 654  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #3491 (permalink)
Trading Apprentice
Los Angeles, CA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: NG
 
Posts: 5 since Jun 2014
Thanks: 7 given, 1 received

Soybean gap?

Can someone more knowledgeable about Soybeans explain to me why ZS gapped down on 6/24 when we rolled to the current contract?

Reply With Quote
 
  #3492 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,700 since Dec 2013
Thanks: 1,488 given, 2,558 received
Forum Reputation: Legendary


ron99 View Post
While the totals are higher, most of the growth is in exotic options including options that aren't traded on Globex. OI for options on CL, NG, RB, HO, C, S, GC, ES are lower compared to last year. CL is down by over 50% compared to 3 years ago.

I suspect some of the drop in CL is due to its replacement as the world oil benchmark by Brent. "Dated Brent" always was the worlds physical benchmark, but I believe Brent is now it's finanical benchmark as well.

When Demand>Supply barrels still came across the Atlantic into the Gulf and up pipelines into mid-america. Hence WTI was still market linked - and often the 'premium' barrel in the world.

Then Supply>Demand and you had a surplus of barrels in mid-america that had no home and no where to go. Hence WTI became detached from world oil markets.

Now pipelines have been reversed and oil flows from mid-america down to the Gulf Coast and WTIs relationship (although now a different one) has been reestablished with world oil markets.

Reply With Quote
The following user says Thank You to SMCJB for this post:
 
  #3493 (permalink)
Trading Apprentice
TPE, TW
 
Futures Experience: Beginner
Platform: ib tws
Favorite Futures: gbpusd, vix
 
Posts: 49 since Jul 2014
Thanks: 11 given, 40 received



effective View Post
Thanks for sharing your trade. How do you handle stop loss order in IB? Manually or through contingent order?

Both are fine, if you're comfortable daytrading and disciplined with stop no "just an extra 2c more above my stop.." mentality then manual is fine. I like to watch videos with alerts on so I use contingent with condition of LAST => 10c (your stop), BUY @ MARKET, DAY ORDER, no trigger outside RTH. Most you will lose is an extra 1c with a very fast moving market. If you use limit for 10c you might miss it at a very fast market and lose a few cents extra. Only for something as liquid as SPY near the money options..anything with spread more than 2 ticks I wouldn't do this.

Reply With Quote
The following user says Thank You to k20a for this post:
 
  #3494 (permalink)
Trading Apprentice
Springfield Missouri
 
Futures Experience: Intermediate
Platform: Trader Work Station
Favorite Futures: ES
 
Posts: 8 since Jun 2014
Thanks: 1 given, 1 received


k20a View Post
Both are fine, if you're comfortable daytrading and disciplined with stop no "just an extra 2c more above my stop.." mentality then manual is fine. I like to watch videos with alerts on so I use contingent with condition of LAST => 10c (your stop), BUY @ MARKET, DAY ORDER, no trigger outside RTH. Most you will lose is an extra 1c with a very fast moving market. If you use limit for 10c you might miss it at a very fast market and lose a few cents extra. Only for something as liquid as SPY near the money options..anything with spread more than 2 ticks I wouldn't do this.

This is good. I just started doing some of this with naked puts. What do you mean by Tuesday expirations? I have never seen any of these. What instrument has these?

Reply With Quote
 
  #3495 (permalink)
Trading Apprentice
TPE, TW
 
Futures Experience: Beginner
Platform: ib tws
Favorite Futures: gbpusd, vix
 
Posts: 49 since Jul 2014
Thanks: 11 given, 40 received

Futures Edge on FIO

Which time slot for our live webinar events works best for you?

 

Blaine View Post
This is good. I just started doing some of this with naked puts. What do you mean by Tuesday expirations? I have never seen any of these. What instrument has these?

VIX indices and a few of its derivatives are Tuesday expiries.

Reply With Quote
 
  #3496 (permalink)
Trading Apprentice
Goshen Indiana USA
 
Futures Experience: Intermediate
Platform: TOS, TradeStation
Favorite Futures: ES
 
Posts: 4 since Aug 2012
Thanks: 55 given, 4 received

Great forum! Good job!

Hi everyone...I just wanted to thank all those who have contributed to this thread! A "big" thank you to @ron99 for sharing so many of the things he has learned along the way. I came across this thread last Sept/Oct and have been reading as time would allow. A few weeks ago I began reading from the beginning to better understand the thought process as this has developed. I started trading options in '07 -- I am sure I joined the ranks of many -- made a lot but also lost a lot. 2007 was a fabulous yr. selling premium for me but got caught in the whip of '08. I then lived abroad for nearly 4.5 yrs so I am now looking at selling futures options. I still have many questions and am almost completely through the complete thread.

Keep up the good work everyone...keep posting and hopefully someday I will be able to contribute to this great forum too! Thanks again to all who have made this a great place.

RB

Reply With Quote
The following user says Thank You to RBtrader for this post:
 
  #3497 (permalink)
Trading for Fun
Riga Latvia
 
Futures Experience: Intermediate
Platform: Zaner 360
Favorite Futures: commodyties
 
Posts: 90 since Jan 2013
Thanks: 249 given, 67 received

Margin on CC

How is the SPAN margin for CC Z (dec) 4 Put strike 2700?
Zaner360 show 935$

Reply With Quote
 
  #3498 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,231 since Jul 2012
Thanks: 1,030 given, 4,056 received


uuu1965 View Post
How is the SPAN margin for CC Z (dec) 4 Put strike 2700?
Zaner360 show 935$

Must be something wrong. $935 is actually full margin. SPAN should be $164

I'd call your broker or the trade desk.

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:
 
  #3499 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,419 since Jul 2011
Thanks: 663 given, 4,117 received
Forum Reputation: Legendary


Griffith View Post
Can someone more knowledgeable about Soybeans explain to me why ZS gapped down on 6/24 when we rolled to the current contract?

Because the contract that went off was old crop beans and the new contract is for new crop beans which is having a great growing season and thus lower in price.

Reply With Quote
 
  #3500 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 258 since Oct 2012
Thanks: 126 given, 75 received

Interesting Article


Cold hard facts and proof that selling far OTM options at 30 DTE is a BIG MISTAKE - Trading Talk - Livevol Community


Interesting article. Seems to agree with most of Ron99's ideas.

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

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)
 

Prototyping Trading Strategies in Python w/Ran Aroussi (1PM Eastern US)

Elite only
 

NinjaTrader 8: Tips and Tricks (part 2)

Mar 2
 

An Afternoon With FIO member @michaelleemoore

Elite only
 

Jigsaw Trading: Keys to successfully trading the open

Mar 9

Macro view: Trump Market Risk w/Piers Curran @ Amplify Trading

Elite only

Reading the Psychology of the Market w/Brett Steenbarger & Trading Technologies

Elite only

Hybrid Machine Learning (R and TradeStation) w/Murray Ruggiero

Elite only

Spring Grains Outlook w/Sean Lusk @ Walsh Trading

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 01:51 AM.

no new posts
Page generated 2017-02-24 in 0.14 seconds with 20 queries on phoenix via your IP 54.158.188.59