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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,065 / 5,727
Last Reply:Yesterday (12:40 PM) Attachments:642

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Selling Options on Futures?

Old December 30th, 2014, 06:21 PM   #3871 (permalink)
Trading Apprentice
dade fl
 
Futures Experience: Intermediate
Platform: Zaner 360, Tradestation, T4
Favorite Futures: Oil futures and options
 
Posts: 21 since Nov 2014
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danny770 View Post
which brokers are better to sell options on Futures?
Options xpress? TOS? IB?

Thanks

Hi Danny, I also recommend DeCarley Trading, she and her team are the best and they can offer you lots of different platforms and clearing houses. I have traded with Tradestation options futures and I don't recommend it unless you have a million dollars and you don't care about margins, or service or a good platform. Because the tradestation for stocks and futures platform is not the same for options on futures. And if you ever try that options platform you are going to feel like you are in a cave. Good luck.

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Old December 31st, 2014, 10:24 AM   #3872 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
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Thanks

Thanks to everyone who has contributed ideas this year to this thread. (Especially RON99.)
I have had a good year.

And for my 2c:

"Small losses are OK, but big losses hurt."

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Old January 6th, 2015, 10:20 AM   #3873 (permalink)
Market Wizard
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Schork sent out a free energy newsletter. It is interesting reading.

http://www.schorkreport.com/newsletters/schork-TSR-20150105.pdf

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Old January 8th, 2015, 06:42 AM   #3874 (permalink)
Trading for Fun
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ron99 View Post
I guess I am on a deserted island. Anybody know a place that discusses selling options on futures?

Don't worry mate, you aren't Robinson Careuso? (spelling) I've bought, sold and written options on futures from currently and going back to the early/mid 90s, it was a lot different back then and I used to be pretty wild and reckless in those days.lol Cheers John

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Old January 21st, 2015, 10:52 PM   #3875 (permalink)
Trading for Fun
Amarillo Texas/USA
 
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Price projection for crude oil

Futures Edge on FIO

Are you a NinjaTrader user?

 
I am entirely a newbie to futures. If you can help me with this.

If I have a price projection for crude to reach 28 in exactly 2 months from now, March 20th.

I see that we are in a trading channel for the last month and a half with oil which oil is now following quite nicely.
My prediction is that we are going to see 28 in eight or nine weeks.

The simplest way I know how to play that would be to buy a 1x bear crude ETF (DNO or SZO) with a cash account with no margin. The next step up would be to make the same trade on margin.

With limited experience at this, any recommendations as to making the most profitable trade possible using leverage.
Please, if recommending options, state the expiration date and which price options or if recommending futures, please be very specific.

I would like to understand the strategy behind this.

Just in purely, mathematical terms, having a price projection forward. How best to capitalize on such a price projection. This is something that should be understandable.

Thank you

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Old January 21st, 2015, 11:18 PM   #3876 (permalink)
Trading Apprentice
dade fl
 
Futures Experience: Intermediate
Platform: Zaner 360, Tradestation, T4
Favorite Futures: Oil futures and options
 
Posts: 21 since Nov 2014
Thanks: 21 given, 7 received

Run!

Hi, if you believe so strongly in your model buy a put with 2 month to expiration and just sit back and enjoy the ride. Worst case, you lose the cost of the put. But that shouldn't be a problem that model looks solid! Good luck.

e4williams View Post
I am entirely a newbie to futures. If you can help me with this.

If I have a price projection for crude to reach 28 in exactly 2 months from now, March 20th.

I see that we are in a trading channel for the last month and a half with oil which oil is now following quite nicely.
My prediction is that we are going to see 28 in eight or nine weeks.

The simplest way I know how to play that would be to buy a 1x bear crude ETF (DNO or SZO) with a cash account with no margin. The next step up would be to make the same trade on margin.

With limited experience at this, any recommendations as to making the most profitable trade possible using leverage.
Please, if recommending options, state the expiration date and which price options or if recommending futures, please be very specific.

I would like to understand the strategy behind this.

Just in purely, mathematical terms, having a price projection forward. How best to capitalize on such a price projection. This is something that should be understandable.

Thank you


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Old January 22nd, 2015, 09:39 AM   #3877 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 257 since Oct 2012
Thanks: 126 given, 75 received


e4williams View Post
I am entirely a newbie to futures. If you can help me with this.

If I have a price projection for crude to reach 28 in exactly 2 months from now, March 20th.

I see that we are in a trading channel for the last month and a half with oil which oil is now following quite nicely.
My prediction is that we are going to see 28 in eight or nine weeks.

The simplest way I know how to play that would be to buy a 1x bear crude ETF (DNO or SZO) with a cash account with no margin. The next step up would be to make the same trade on margin.

With limited experience at this, any recommendations as to making the most profitable trade possible using leverage.
Please, if recommending options, state the expiration date and which price options or if recommending futures, please be very specific.

I would like to understand the strategy behind this.

Just in purely, mathematical terms, having a price projection forward. How best to capitalize on such a price projection. This is something that should be understandable.

Thank you

What if you are wrong? What if you are completely wrong? What happens?

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Old January 22nd, 2015, 11:10 AM   #3878 (permalink)
Trading for Fun
Amarillo Texas/USA
 
Futures Experience: Intermediate
Platform: none
Favorite Futures: Stocks
 
Posts: 61 since Dec 2014
Thanks: 30 given, 11 received

Oil at 25??


datahogg View Post
What if you are wrong? What if you are completely wrong? What happens?

Good point. I may be completely wrong. I'll probably just short DNO on margin with a stop to back out of the trade if the trade goes bad. If it takes an extra month to reach my price objective it won't cost me anything like it would with puts. But it's very hard to see oil going up much in the next couple of months.

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Old January 23rd, 2015, 10:21 AM   #3879 (permalink)
Elite Member
Chicago, IL
 
Futures Experience: Beginner
Platform: RTrader
Favorite Futures: CL
 
Posts: 15 since Apr 2013
Thanks: 9 given, 1 received


e4williams View Post
Good point. I may be completely wrong. I'll probably just short DNO on margin with a stop to back out of the trade if the trade goes bad. If it takes an extra month to reach my price objective it won't cost me anything like it would with puts. But it's very hard to see oil going up much in the next couple of months.

First of all, this thread is discussing selling options on futures, and not other trading strategies.

Second of all, irvino81 is correct. Buy a put on crude oil is a much better way of making a short bet on the CL market. I like the analogy of buying options as buying a lottery ticket. You "lose" the price you pay for the option, with the intent of possibly striking it big.

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Old January 25th, 2015, 01:21 AM   #3880 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 213 since Jan 2015
Thanks: 13 given, 172 received


All,

I hope everybody's been doing well and having a fantastic start to the new year. I'm really glad that I had a chance to stumble across this thread. A friend of mine introduced me to the idea of selling puts on equities and I've been researching the subject for quite some time now. I came across Cordier's book a few weeks ago almost by accident on Amazon and was completely sold on the idea of selling options on commodities. I think it suits my style which is very macro level, much better than equities. I've been doing quite a lot of research on the various commodities markets out there and have a very good idea about what my first trade will be, sell calls against crude. What I'm hoping to do is write my analysis of why I'm making the trade on this thread and see if I can get some feedback, good or bad.

My eventual goal is to use this first trade as a stepping stone to get a better understanding of how to engineer my business going forward.

Thanks everyone, this thread truly has been an eye-opener. I'm hoping to place my analysis on here in the next day or so.

/A/

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