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


Selling Options on Futures?
Started: by ron99 Views / Replies:611,340 / 5,869
Last Reply: Attachments:659

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
 659  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #3781 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,766 since Dec 2013
Thanks: 1,519 given, 2,645 received
Forum Reputation: Legendary


daydayup8 View Post
Did you mean sell NG calls? I thought NG would go higher from the previous reports and charts, I maybe wrong, I am very new in NG, just noticed it went higher at the end of last year and early this year.

I was joking.

CafeGrande posted the image below which implies a 2 Std Dev move in NGH would be $7. I was making the joke that people could safely sell the $7 call. In reality I'm one of the last people that would recommend that a non very experience NG trader short NGH calls. A lot of money made and lost here last year on March NG Calls - some interesting reads if you have time.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following user says Thank You to SMCJB for this post:
 
  #3782 (permalink)
Elite Member
tennessee/USA
 
Futures Experience: Intermediate
Platform: Quotetracker, TOS
Broker/Data: OX TOS
Favorite Futures: ES
 
Posts: 83 since Aug 2014
Thanks: 267 given, 8 received

I read the whole threat. Thanks. It looks like NG starts the up-trend again.

SMCJB View Post
I was joking.

CafeGrande posted the image below which implies a 2 Std Dev move in NGH would be $7. I was making the joke that people could safely sell the $7 call. In reality I'm one of the last people that would recommend that a non very experience NG trader short NGH calls. A lot of money made and lost here last year on March NG Calls - some interesting reads if you have time.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Reply With Quote
 
  #3783 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,766 since Dec 2013
Thanks: 1,519 given, 2,645 received
Forum Reputation: Legendary



daydayup8 View Post
It looks like NG starts the up-trend again.

Forecasts all shifting colder... Dec Futures have rallied 50+c in the last 6 days.
If you think that's significant - physical gas for the balance of the month delivered to Algonquin (aka Boston) - the most expensive and volatile gas in the country - was up $1.70 today to $8.30!

Reply With Quote
The following user says Thank You to SMCJB for this post:
 
  #3784 (permalink)
Trading for Fun
St Paul, MN, USA
 
Futures Experience: Advanced
Platform: Abacus
Broker/Data: RJO, Interactive Brokers
Favorite Futures: Commodity Futures & Options
 
Posts: 193 since Jan 2014
Thanks: 112 given, 182 received


SMCJB View Post
I was joking.

CafeGrande posted the image below which implies a 2 Std Dev move in NGH would be $7. I was making the joke that people could safely sell the $7 call. In reality I'm one of the last people that would recommend that a non very experience NG trader short NGH calls. A lot of money made and lost here last year on March NG Calls - some interesting reads if you have time.

And I was kidding about adding a side order of (short) soybean meal calls, which have also increased significantly in price and in implied volatility recently. The plane ticket reference is from an old trading joke - the "O'Hare Hedge" - where you put on trades you can't afford and then buy a ticket to Rio or someplace that doesn't have an extradition treaty with the US.

If the trade goes your way, you have a great vacation and come back a hero. If it doesn't, you're broke and can never return home, but at least you can live out your days in a tropical country.

Reply With Quote
The following 2 users say Thank You to CafeGrande for this post:
 
  #3785 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,766 since Dec 2013
Thanks: 1,519 given, 2,645 received
Forum Reputation: Legendary

Futures Edge on FIO

SMCJB View Post
Forecasts all shifting colder...

This is an interesting piece from the Washington Post about how Typhoon Nuri and the Arctic Oscillation look to be about to bring an early blast of cold to the US.

Typhoon Nuri forecast to kick-start a parade of cold outbreaks in Eastern U.S. - The Washington Post

Reply With Quote
The following 2 users say Thank You to SMCJB for this post:
 
  #3786 (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

For anyone that missed SMCJB's post from last December about March/April NG it's worthwhile reading:

https://futures.io/options-cfd-trading/12309-selling-options-futures-262.html#post375470


Enjoy,

Chris

Reply With Quote
The following 2 users say Thank You to MGBRoadster for this post:
 
  #3787 (permalink)
Trading for Fun
Reno, USA
 
Futures Experience: Intermediate
Platform: esignal
Favorite Futures: Oil
 
Posts: 70 since Jul 2011
Thanks: 14 given, 9 received

Crude Oil

Sold to open 25 January 105 Calls. Credit received 0.03 per contract. Delta 0.01 DTE=41

any thoughts appreciated

again still a beginner

thanks

V

Reply With Quote
 
  #3788 (permalink)
Market Wizard
Houston TX
 
Futures Experience: Advanced
Platform: XTrader
Broker/Data: Advantage Futures
Favorite Futures: Energy
 
Posts: 1,766 since Dec 2013
Thanks: 1,519 given, 2,645 received
Forum Reputation: Legendary


vmaiya73 View Post
Sold to open 25 January 105 Calls. Credit received 0.03 per contract. Delta 0.01 DTE=41

any thoughts appreciated

What are you fees?

Reply With Quote
 
  #3789 (permalink)
Trading for Fun
Reno, USA
 
Futures Experience: Intermediate
Platform: esignal
Favorite Futures: Oil
 
Posts: 70 since Jul 2011
Thanks: 14 given, 9 received

A lot,

I use optionsxpress so even though I should have collected $750 it was only $626

Commission: $87.50
exchange fee: $36.50

V

Reply With Quote
 
  #3790 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,236 since Jul 2012
Thanks: 1,046 given, 4,078 received



vmaiya73 View Post
Sold to open 25 January 105 Calls. Credit received 0.03 per contract. Delta 0.01 DTE=41

any thoughts appreciated

again still a beginner

thanks

V


One issue I have found after doing this for 2 years is that lower premiums require selling more contracts, and when a trade like that goes bad, it can get ugly quickly.

I think at one point last winter I was short 70 Nat Gas calls, and most of them were sold with low premium. I narrowly escaped that.

Instead of 25 at .03, I'd look for 15 at .05 or something like that, if it can be done. Roughly same amount of premium, but you'll be glad you kept the number of contracts small.

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 5 users say Thank You to kevinkdog 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)
 

Spring Grains Outlook w/Sean Lusk @ Walsh Trading

Elite only

FIO Video Journal Challenge featuring NinjaTrader ($2,000+ of prizes)

April

Process above all else w/Anthony Crudele @ Futures Radio Show

Elite only

Machine Learning - Quantitative Trading w/Martin Froehler @ Quantiacs

Elite only

Market Dynamics w/Peter Davies @ Jigsaw Trading

Elite only

Ask Me Anything w/Patrick Rooney @ Trading Technologies

Apr 18

Ask Me Anything w/FuturesTrader71

Apr 19

Machine Learning w/Kris Longmore

Elite only

Market Analysis w/Dave Forss

Apr 25

Introducing iSystems with Stage 5 Trading

Apr 27
     

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 11:00 AM
Recommend futures, options Broker? sam1197 Brokers and Data Feeds 17 March 27th, 2013 12:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 04:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 12:40 PM
Zen-Fire Futures options tici88 Brokers and Data Feeds 1 July 30th, 2011 09:16 AM


All times are GMT -4. The time now is 03:21 AM.

no new posts
Page generated 2017-03-29 in 0.13 seconds with 20 queries on phoenix via your IP 54.157.52.205