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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,132 / 5,728
Last Reply:December 6th, 2016 (05:26 PM) Attachments:642

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Selling Options on Futures?

Old December 18th, 2014, 01:05 PM   #3851 (permalink)
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irvino81 View Post
Hi Ron, thanks for your opinion, it is the first one I ever get on the topic and I appreciate it. So according to you, if I check tradestation futures 9.0 quotes for coffee options they are going to be the same for every broker in the planet ? Those options models are going to shoot the same numbers for everybody, every market maker is going to arrive at the same conclusion for bids and offers at all times?
Here I have a picture of my screen from a couple of minutes ago of some positions I have on oil. Some Short some long. The platform glitch repeated the 61 put. Notice the values of the bids and asks are different (Third and Fourth Columns are Bids and Asks)

Yes same bids and asks for everybody on the planet. All market makers send their bids and asks to the CME or ICE. This isn't like stock options.

The reason for the wide spread between bid and ask is you are looking at deep ITM options. Nobody really wants to trade them so they have a very wide spread.

Look at a 50 or 55 put. Much closer spread.


Last edited by ron99; December 18th, 2014 at 07:12 PM.
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Old December 18th, 2014, 01:06 PM   #3852 (permalink)
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irvino81 View Post
Hi Ron, thanks for your opinion, it is the first one I ever get on the topic and I appreciate it. So according to you, if I check tradestation futures 9.0 quotes for coffee options they are going to be the same for every broker in the planet ? Those options models are going to shoot the same numbers for everybody, every market maker is going to arrive at the same conclusion for bids and offers at all times?
Here I have a picture of my screen from a couple of minutes ago of some positions I have on oil. Some Short some long. The platform glitch repeated the 61 put. Notice the values of the bids and asks are different (Third and Fourth Columns are Bids and Asks)


For futures, all quotes are distributed by the exchanges, and everyone in the world sees the same bid and ask.

Maybe you are thinking of Forex market, where each broker could make his own bid/ask quote, since there is no centralized exchange.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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Old December 18th, 2014, 04:53 PM   #3853 (permalink)
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irvino81 View Post
Hi Ron, thanks for your opinion, it is the first one I ever get on the topic and I appreciate it. So according to you, if I check tradestation futures 9.0 quotes for coffee options they are going to be the same for every broker in the planet ? Those options models are going to shoot the same numbers for everybody, every market maker is going to arrive at the same conclusion for bids and offers at all times?
Here I have a picture of my screen from a couple of minutes ago of some positions I have on oil. Some Short some long. The platform glitch repeated the 61 put. Notice the values of the bids and asks are different (Third and Fourth Columns are Bids and Asks)

There is one exception: There are commodities that you can trade at different exchanges. You can trade wheat at CME as well as at Matif in France; you can trade Cocoa at ICE as well as in London. Prices will be different, but also conditions of the trade are not the same: Eg. the place of delivery usually is different, also often the quality of the product you have to deliver.

Best regards, Myrrdin


Last edited by myrrdin; December 18th, 2014 at 05:08 PM. Reason: typing error
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Old December 18th, 2014, 05:10 PM   #3854 (permalink)
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myrrdin View Post
There is one exception: There are commodities that you can trade in different exchanges. You can trade wheat at CME as well as at Matif in France; you can trade Cocoa at ICE as well as in London. Prices will be different, but also conditions of the trade are not the same: Eg. the place of delivery usually is different, also often the quality of the product you have to deliver.

Best regards, Myrrdin

This is not what he was asking. He was asking about the KC contract.

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Old December 18th, 2014, 05:25 PM   #3855 (permalink)
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ron99 View Post
This is not what he was asking. He was asking about the KC contract.

1. The thumbnail of irvin081 shows CL options, not KC.

2. I thought the additional information might be useful for novice traders.

3. I get the impression you want to have your private forum here. I accept this, and will not post any further comments.

Best regards, Myrrdin

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Old December 18th, 2014, 07:09 PM   #3856 (permalink)
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myrrdin View Post
1. The thumbnail of irvin081 shows CL options, not KC.

2. I thought the additional information might be useful for novice traders.

3. I get the impression you want to have your private forum here. I accept this, and will not post any further comments.

Best regards, Myrrdin

1. He said coffee options at Trade Station.

2. You offered no help because you didn't answer the question of why the wide spread at one exchange.

3. How is your prediction that CL wouldn't go below $65 and how are those Dec 2015 $50 crude puts working out for you?

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Old December 18th, 2014, 07:37 PM   #3857 (permalink)
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Fellows, lets get back to business and put our personal differences aside. I understand the options quotes offered by tradestation "should" be the same as those offered by IB. But just for the sake of the argument, is it possible for your broker if she is trading against you to post a bogus quote on an option matrix? Silver options come to mind since they carry a big margin requirement and margin calls can be nasty. And for those of you with experience in this business, I'm honestly asking and I really appreciate everybody for their contribution.

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Old December 18th, 2014, 07:51 PM   #3858 (permalink)
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irvino81 View Post
Fellows, lets get back to business and put our personal differences aside. I understand the options quotes offered by tradestation "should" be the same as those offered by IB. But just for the sake of the argument, is it possible for your broker if she is trading against you to post a bogus quote on an option matrix? Silver options come to mind since they carry a big margin requirement and margin calls can be nasty. And for those of you with experience in this business, I'm honestly asking and I really appreciate everybody for their contribution.

All bids and asks are sent to the exchange, combined together and sent out as the only source of data on platforms. The broker has nothing to do with it. Trade Station has the same bids and asks as IB, Gain, RJO, ADM, TOS and everybody else because they all get them from the same place. CME, ICE, etc.

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Old December 18th, 2014, 08:41 PM   #3859 (permalink)
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NG calls

So bought the new option selling book from James Cordier's website and signed up for some stuff and got sent a news letter for december.

He is recommending selling the march 8.5 natural gas calls.

any thoughts ?

thanks

V

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Old December 18th, 2014, 08:57 PM   #3860 (permalink)
Market Wizard
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vmaiya73 View Post
So bought the new option selling book from James Cordier's website and signed up for some stuff and got sent a news letter for december.

He is recommending selling the march 8.5 natural gas calls.

any thoughts ?

thanks

V

Maybe later but not now when call prices are very low.

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