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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,146 / 5,728
Last Reply:December 6th, 2016 (05:26 PM) Attachments:642

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Selling Options on Futures?

Old August 22nd, 2014, 02:04 PM   #3541 (permalink)
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daydayup8 View Post
Ron, the DeCarly charged $7 for round trip for selling options, is that right? what about their margin?
for example, if I want to sell Sep 12,2014 1850 put (bid 1.7, ask 1.9, alpha=0.04), IM is 6685, MM is 5348 at IB.
since I am familiar with ES, I may focus on ES option selling for now. Commodity trading is very new to me.

Do you know anybody here focusing on selling ES options? thanks!

On top of commissions and exchange fees, DeCarley is also charging an additional 0.75 cents (1.5 RT) fee. This was not disclosed to me when I opened an account with them. Otherwise service is good if not on the expensive side.

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Old August 22nd, 2014, 02:26 PM   #3542 (permalink)
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effective View Post
On top of commissions and exchange fees, DeCarley is also charging an additional 0.75 cents (1.5 RT) fee. This was not disclosed to me when I opened an account with them. Otherwise service is good if not on the expensive side.

I have found after years of chasing the lowest cost trading fees that it wasn't worth chasing the lowest dollar. Good customer service is worth the couple of extra bucks more.

If you calculate you ROI with a $2 higher cost it hardly changes the ROI as long as you sold the option for above $50. Maybe 0.1%.

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Old August 22nd, 2014, 02:56 PM   #3543 (permalink)
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ron99 View Post
I have found after years of chasing the lowest cost trading fees that it wasn't worth chasing the lowest dollar. Good customer service is worth the couple of extra bucks more.

If you calculate you ROI with a $2 higher cost it hardly changes the ROI as long as you sold the option for above $50. Maybe 0.1%.

Perhaps. I just did not like that the fact that the "fee" was not disclosed to me at the beginning. That seems to be a recurring theme with brokers, you get quoted a commission and then find these fees. Still her service is very good.

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Old August 22nd, 2014, 06:56 PM   #3544 (permalink)
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daydayup8 View Post
Ron, the DeCarly charged $7 for round trip for selling options

Please use the DeCarley broker thread to ask broker questions or read/post reviews:

https://futures.io/brokers-data-feeds/22520-carley-garner-decarleytrading-com-carleygarnertrading-com.html

Or to ask Carley a question about anything options/trading related used the AMA thread:

https://futures.io/options-cfd-trading/26310-decarley-trading-s-carley-garner-se...ing-ask-me-anything.html

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Old August 23rd, 2014, 09:34 AM   #3545 (permalink)
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Futures Edge on FIO
Thanks Mike, I didn't know this before. I went over the link and found my answers, thanks guys, a lot of new information for me to absorb in a short period:-)


Big Mike View Post
Please use the DeCarley broker thread to ask broker questions or read/post reviews:

https://futures.io/brokers-data-feeds/22520-carley-garner-decarleytrading-com-carleygarnertrading-com.html

Or to ask Carley a question about anything options/trading related used the AMA thread:

https://futures.io/options-cfd-trading/26310-decarley-trading-s-carley-garner-se...ing-ask-me-anything.html

Mike



Last edited by daydayup8; August 23rd, 2014 at 10:44 AM.
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Old August 24th, 2014, 01:49 PM   #3546 (permalink)
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Options on Futures


ron99 View Post
I guess I am on a deserted island. Anybody know a place that discusses selling options on futures?

You can view and learn over at get tasty tastytrade live or archives. Tom teach's his daughter Case WDIS .
TOS platform in chat archives as well.
I hope you enjoy and post some futures options in BM.
In tasty check out dough as well.

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Old August 24th, 2014, 09:16 PM   #3547 (permalink)
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MJ888, how much capital did you put down to open the acct with OX that they granted you with this good commission rate? I am wondering if I open an 20k acct with them, they don't even consider to lower the commission for me. Any inputs will be appreciated.

ddu


MJ888 View Post
I have been using Interactive Brokers to sell options on futures since 2003. But I am going to switch over to Options Express soon. As Ron99 said in an earlier post, he checked out TOS and it is not friendly to options sellers.

For the past week I have been comparing IB with OX. Hands down IB has the better overall trading platform and lowest commissions, I pay under $3 for each option traded. But for the purpose of selling far OTM options, I would use OX because the margin requirements are as close to SPAN as you can find. If you scroll back and read this post, me and Ron99 have found that at times the margin requirements at IB can be more than 600% higher compared to OX. For example, I currently have an April CL strangle for three options at 70 Puts and 105 Calls. My initial margin requirement at IB is close to $15,000 whereas with XO, my margin would be about $7,600. Huge difference! I can use the extra margin to place additional positions!

Last week I called OX and told them how cheap my commissions were at IB, after some back and forth negotiating, OX gave me a rate of $3.99 per option with no minimum trade quotas. To me, this is great because I can easily make up for the difference in commissions by being able to trade twice the size I normally do at IB.


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Old August 24th, 2014, 10:04 PM   #3548 (permalink)
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ddu, OX is 3.50 per half turn for all traders unless you have traded with them for years and have a large balance. But OX is not SPAN minimum margin in all cases.

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Old August 24th, 2014, 10:40 PM   #3549 (permalink)
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Ron, thanks, I am thinking maybe to open one regular acct with OX and open one IRA with DeCarly ... I don't know yet... I am still so concerned about Black Swan/fat finger thing ( the margin call I got from IB still scared me a lot that I am not confident enough yet to start selling option again. Just cant pull the trigger yet. I plan to finish Cordier's book and this thread first, searching around until I am very clear about how to control risk, then I can move on..


ron99 View Post
ddu, OX is 3.50 per half turn for all traders unless you have traded with them for years and have a large balance. But OX is not SPAN minimum margin in all cases.


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Old August 24th, 2014, 10:49 PM   #3550 (permalink)
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Futures Experience: Intermediate
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$3.5 is good enough, after you told me, I checked their website again, I did find the option on future is $3.5, I thought it was $12.95 flat, thank you Ron!
I maybe also consider to sell option on commodity like Cordier said to diversify the risk, if I only trade ES option, Black swan/ fat finger feel like inevitable.


ron99 View Post
ddu, OX is 3.50 per half turn for all traders unless you have traded with them for years and have a large balance. But OX is not SPAN minimum margin in all cases.


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