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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,106 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old September 17th, 2014, 06:27 PM   #3641 (permalink)
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jeez, I am getting old, I plan to 'sell', not 'buy'. OK, then, I will just forget about it. Please continue to send alerts if you spot any good opportunities. Thanks.

ron99 View Post
You will not make that buying options. Only selling the option.

I doubt you will find a buyer at 0.01 since it settled today at 0.005.


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Old September 17th, 2014, 06:29 PM   #3642 (permalink)
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kronie View Post
this is excellent, and congradulations on your successful trade

to earn that I can almost guarantee more excitement in the Emini pits..

what really concerns me, are the required necessary funds on account (margin) based on the increased SEC Reg-T margin on option trades, particularly naked options too...

what about $35,000?

This is a futures account and not subject to Reg-T. The margin requirement is set by SPAN. As I posted, the margin requirement per option with I opened this trade was $389.40. My rule is to set aside 3X the margin requirement to do a trade, so I set aside $1168.20 for each option to leave a cushion in the event it goes against me.

You can compare SPAN margins in futures accts to Portfolio Margin that some equity firms offer. Much lower requirements than Reg-T.

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Old September 17th, 2014, 07:14 PM   #3643 (permalink)
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ron99 View Post
The SEC does not regulate option on futures trading.

pm me please....

so, really?

come to think of it, its the FTC, not SEC

these derivatives and derivatives of derivatives have so fractured the markets that the concept of synthetics has real chops....

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Old September 18th, 2014, 10:40 AM   #3644 (permalink)
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Delta value in OX

The delta in OX is not correct, for example, for ESX41600P, ES 1600p with expiration November, the delta is 0.04 at OX now, but it was 0.0237 when I put on this position( I still had IB at that time, got delta from IB), with ES higher, this delta should be even lower. I know a lot of folks here used OX before, then how did you get correct delta? Thanks!

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Old September 18th, 2014, 10:45 AM   #3645 (permalink)
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daydayup8 View Post
The delta in OX is not correct, for example, for ESX41600P, ES 1600p with expiration November, the delta is 0.04 at OX now, but it was 0.0237 when I put on this position( I still had IB at that time, got delta from IB), with ES higher, this delta should be even lower. I know a lot of folks here used OX before, then how did you get correct delta? Thanks!

I just went to OX. On the option chain it shows a delta of 0.02. On the Trade Calculator it shows a delta of 0.02.

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Old September 18th, 2014, 10:56 AM   #3646 (permalink)
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look at this, am I getting wrong data? it is from Trade Calculator.
PSoes that mean I should use 0.04/2 as the right delta? I just realized that. That could be the reason.

ron99 View Post
I just went to OX. On the option chain it shows a delta of 0.02. On the Trade Calculator it shows a delta of 0.02.


Attached Thumbnails
Selling Options on Futures?-delta.png  

Last edited by daydayup8; September 18th, 2014 at 11:03 AM.
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Old September 18th, 2014, 11:02 AM   #3647 (permalink)
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daydayup8 View Post
look at this, am I getting wrong data? it is from Trade Calculator.

Change your quantity to one.

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Old September 18th, 2014, 11:09 AM   #3648 (permalink)
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Just realized that, poor me! I have another position with 4 put, when I used the Trade Calculator to get the changing IM (since ES was down a few days ago), I was stunned to found out my delta was 0.12, something like that. luckily, I did not buy them back since I was guessing OX gave me wrong delta.


ron99 View Post
Change your quantity to one.


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Old September 18th, 2014, 11:13 AM   #3649 (permalink)
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ron99 View Post
You will not make that buying options. Only selling the option.

I doubt you will find a buyer at 0.01 since it settled today at 0.005.

where did you get the settled price? I searched around, did not find it. OX is 0.00. Thanks.


Last edited by daydayup8; September 18th, 2014 at 11:35 AM.
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Old September 18th, 2014, 11:51 AM   #3650 (permalink)
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daydayup8 View Post
where did you get the settled price? I searched around, did not find it. Thanks.

From my data provider, QST. On OX you can get it on the option chains the next day. OX shows 0.005 as 0.00.

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