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Selling Options on Futures?
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Selling Options on Futures?

  #381 (permalink)
Elite Member
Portland OR
 
Futures Experience: Intermediate
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Favorite Futures: Stocks
 
Posts: 56 since Dec 2012
Thanks: 87 given, 29 received

I am glad to have found this thread and appreciate the time and effort by many to spread the knowledge and keep the thread alive, especially ron99 and britkid99.

I am starting on the Futures Options journey in 2013; been trading stocks, options on stocks/indices(spreads, condors, butterflies) and bonds for a few years. I opened an account with Optionsxpress after doing some research (thank you Ron for your insights on OX) even though their commissions are on the higher side.

I plan to play the strategy of selling far OTM, Delta<0.03, initial margin + 2x the maintenance margin as cash reserve.

Happy and prosperous 2013 to all!

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  #382 (permalink)
Elite Member
NW Florida
 
Futures Experience: Intermediate
Platform: OX and TOS
Favorite Futures: Futures Options, Stocks
 
opts's Avatar
 
Posts: 234 since Aug 2012
Thanks: 29 given, 107 received

Barrington:

I've been with OX for about 5 years. Their customer service is great. If it costs a little more $ per trade with them but the customer service makes it worth every penny for me.

Should be a very volatile week coming up.

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  #383 (permalink)
Elite Member
Portland OR
 
Futures Experience: Intermediate
Platform: None
Favorite Futures: Stocks
 
Posts: 56 since Dec 2012
Thanks: 87 given, 29 received


I am waiting on the ACH clearance from OX. So far am liking their interface and ease of use of their website. Also, called them a couple of times during/after account setup and was pleased with the quick response. Since, I won't be doing big volume or day trade etc. the commissions should work out OK.

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  #384 (permalink)
Elite Member
NW Florida
 
Futures Experience: Intermediate
Platform: OX and TOS
Favorite Futures: Futures Options, Stocks
 
opts's Avatar
 
Posts: 234 since Aug 2012
Thanks: 29 given, 107 received

Their Android mobile trading ap has come a long way also.


Anyone have any thoughts on Unleaded Gasoline options? High premiums but low volume, if any, on the far OTM strikes.

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  #385 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,616 since Jul 2011
Thanks: 756 given, 4,492 received
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Barrington View Post
I am glad to have found this thread and appreciate the time and effort by many to spread the knowledge and keep the thread alive, especially ron99 and britkid99.

I am starting on the Futures Options journey in 2013; been trading stocks, options on stocks/indices(spreads, condors, butterflies) and bonds for a few years. I opened an account with Optionsxpress after doing some research (thank you Ron for your insights on OX) even though their commissions are on the higher side.

I plan to play the strategy of selling far OTM, Delta<0.03, initial margin + 2x the maintenance margin as cash reserve.

Happy and prosperous 2013 to all!

Welcome and Good Luck!

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  #386 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,616 since Jul 2011
Thanks: 756 given, 4,492 received
Forum Reputation: Legendary


opts View Post
Their Android mobile trading ap has come a long way also.


Anyone have any thoughts on Unleaded Gasoline options? High premiums but low volume, if any, on the far OTM strikes.

Yes RB options aren't easy to get on, but the ROI is very good.

Normally RB puts are great to sell early in the year. Steady rise in futures Dec to Apr. RB and CL drop significantly in May. So plan on being out of them before May.

I plan on putting on RB puts.

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  #387 (permalink)
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Futures Experience: Intermediate
Platform: OX and TOS
Favorite Futures: Futures Options, Stocks
 
opts's Avatar
 
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Thanks: 29 given, 107 received

Happy New Years Everyone and please remember all those that keep us safe:


Trade well in to 2013

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  #388 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
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OK I have my final results for 2012.

Long options - 44 trades of 862 contracts = 109k loss. I had bought a bunch of ES calls that weren't timed correctly. Plus a few other calls. Trying to predict direction is not easy.

Short futures - 10 trades of 92 contracts = 15k loss.

Futures spreads - 29 trades of 116 contracts = 50k profit. Mainly seasonal spreads.

Short options - 746 trades of 5,034 contracts = 150k profit. A lot less contracts than 2011 but more profit.

Long futures - 216 trades of 949 contracts = 619k profit. Mainly milk futures.

I traded 15 different commodities. CL, C, DA (Milk), DY (Whey), ES, GC, HG, HO, KC, LH, NG, RB, SB, SI, S.

ROI was 75.1%. Not as good as last year. The long options hurt.

But here is the thing that surprised me. Of the 746 trades I sold options, 744 were net profitable. Only 2 trades of 21 contracts lost money. 99.7% winners.

I have an Access database setup into which I enter every trade. Then I am able to do searches to get this data.

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  #389 (permalink)
Market Wizard
Cleveland Ohio/United States
 
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ron99 View Post
OK I have my final results for 2012.

Long options - 44 trades of 862 contracts = 109k loss. I had bought a bunch of ES calls that weren't timed correctly. Plus a few other calls. Trying to predict direction is not easy.

Short futures - 10 trades of 92 contracts = 15k loss.

Futures spreads - 29 trades of 116 contracts = 50k profit. Mainly seasonal spreads.

Short options - 746 trades of 5,034 contracts = 150k profit. A lot less contracts than 2011 but more profit.

Long futures - 216 trades of 949 contracts = 619k profit. Mainly milk futures.

I traded 15 different commodities. CL, C, DA (Milk), DY (Whey), ES, GC, HG, HO, KC, LH, NG, RB, SB, SI, S.

ROI was 75.1%. Not as good as last year. The long options hurt.

But here is the thing that surprised me. Of the 746 trades I sold options, 744 were net profitable. Only 2 trades of 21 contracts lost money. 99.7% winners.

I have an Access database setup into which I enter every trade. Then I am able to do searches to get this data.

Your 2012 performance is REALLY impressive. Congrats!

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The following user says Thank You to kevinkdog for this post:
 
  #390 (permalink)
Elite Member
Portland OR
 
Futures Experience: Intermediate
Platform: None
Favorite Futures: Stocks
 
Posts: 56 since Dec 2012
Thanks: 87 given, 29 received



ron99 View Post
OK I have my final results for 2012.

Long options - 44 trades of 862 contracts = 109k loss. I had bought a bunch of ES calls that weren't timed correctly. Plus a few other calls. Trying to predict direction is not easy.

Short futures - 10 trades of 92 contracts = 15k loss.

Futures spreads - 29 trades of 116 contracts = 50k profit. Mainly seasonal spreads.

Short options - 746 trades of 5,034 contracts = 150k profit. A lot less contracts than 2011 but more profit.

Long futures - 216 trades of 949 contracts = 619k profit. Mainly milk futures.

I traded 15 different commodities. CL, C, DA (Milk), DY (Whey), ES, GC, HG, HO, KC, LH, NG, RB, SB, SI, S.

ROI was 75.1%. Not as good as last year. The long options hurt.

But here is the thing that surprised me. Of the 746 trades I sold options, 744 were net profitable. Only 2 trades of 21 contracts lost money. 99.7% winners.

I have an Access database setup into which I enter every trade. Then I am able to do searches to get this data.

Way to go!! Congrats and wish you a successful 2013!

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