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


Selling Options on Futures?
Updated: Views / Replies:658,643 / 6,181
Created: by ron99 Attachments:714

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • 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.

-- Big Mike, Site Administrator

Reply
 714  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #3951 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 260 since Oct 2012
Thanks: 126 given, 75 received

CL


rsm005 View Post
Well, here's the results of my first trade aaannndddd it didn't go well. Total premium collected $960 on CL. Trade was 27% out of the money and t turned on me inside of 30mins on Friday and the first 45mins on Monday morning. Oil shot up a whopping 13% and my mental stop was hit. I executed my trade but the bid/ask was not in my favor and viola...I got creamed. With the ratio spread I contained the damage but in the end I ended up down almost $3k.

The experience left me a little

and

It really sucks that this is how I have to start the experience but I did learn a lot and I'm taking that information with me to the next trade.

1. The position was too large relative to my account size. My gut told me but I ignored it, not again.
2. I need to sell further out of the money. A .04 delta was just not enough. After reading this thread a few times the number should be closer to .02 or .01. copied and pasted datahogg's post on the same thread to get an idea of just how far out. You still probably haven't noticed the rally . Congratulations man...I need to be more in tune with you and ron99's methods.
3. I need to diversify soon. My original goal was to trade one commodity at a time until I understood the fundamentals well and then add others. Although that sounded good it lends itself to big issues when a single trade goes against me. This is especially true as I'm making much smaller trades.
4. Only aim to make 3%-5% per trade. On this particular trade I tried to go with 10% and that just ended up burning me. See point 1.
5. Get a broker that won't nail me on margins. One of the main reasons I couldn't sell a strangle on my original position, which would have mitigated my losses even more, was because OX was adding so much additional margin to do it. This didn't leave me with the residual 3x cash. I've since opened an account with DeCarley and will see how that goes. I could have simply gone with a smaller trade but didn't...and that again goes back to point 1.
6. Losing hurts..not getting back in the game hurts more. I can see how easy it is to just quit and go back to my career and life but then I would learn anything and I know I can learn and be successful at this.

I'm hoping to get some feedback from the more seasoned people here when I structure my next trade. Thanks all.

/A/

"I sold 12 March15 calls at $58 for a $900 premium."

If I read correctly you sold 12 March 58 calls which will expire 03/18/15 .
What was the premium sold for each call? Because 58 x 12 = $696 not $900 .
Just wanted to look back at your trade. Thanks.

Reply With Quote
 
  #3952 (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


datahogg View Post
"I sold 12 March15 calls at $58 for a $900 premium."

If I read correctly you sold 12 March 58 calls which will expire 03/18/15 .
What was the premium sold for each call? Because 58 x 12 = $696 not $900 .
Just wanted to look back at your trade. Thanks.

His strike is 58. Divide $900 by 12 to get his dollars per option.

Mar calls do not expire 3/18/15.


Last edited by ron99; February 3rd, 2015 at 02:01 PM.
Reply With Quote
 
  #3953 (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


ICE is doing the following webinar,

Thursday, February 5, 2015 4:15 pm
Eastern Standard Time (New York)

Using Options to Trade the ICE Sugar and Coffee Markets.

Please join ICE and Zaner Group as they present Paul Forchione, veteran options strategist and author of Trading Options Visually: What You Must Know to Trade Options on Futures, discussing ways to analyze and select appropriate trading strategies using ICE Sugar (SB) and Coffee (KC) options.

Among the topics covered in this webinar are:
•How to match strategic directional and implied volatility strategies for current market conditions
•Ways to employ practical techniques to obtain a trading advantage when entering markets
•Methods to construct well-crafted trading plans

https://icewebinar.webex.com/mw0401lsp11/mywebex/default.do?nomenu=true&siteurl=...6%26siteurl%3Dicewebinar

I have no idea if this will be worthwhile or not. Just thought I would let you know about it.

Reply With Quote
 
  #3954 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 45,947 since Jun 2009
Thanks: 29,139 given, 81,899 received

The futures.io (formerly BMT) webinar at the same time on neural networks will be more fun

Sent from my phone

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
 
  #3955 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 260 since Oct 2012
Thanks: 126 given, 75 received

CL


ron99 View Post
His strike is 58. Divide $900 by 12 to get his dollars per option.

Mar calls do not expire 3/18/15.

At any rate the margin for these calls now is astronomical.

Reply With Quote
 
  #3956 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
Platform: TOS
Favorite Futures: ES, NQ, CL, /6E futures options.
 
Posts: 260 since Oct 2012
Thanks: 126 given, 75 received

CL


ron99 View Post
His strike is 58. Divide $900 by 12 to get his dollars per option.

Mar calls do not expire 3/18/15.

OK when do they expire??

Reply With Quote
 
  #3957 (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


datahogg View Post
OK when do they expire??

2/17/15

Reply With Quote
 
  #3958 (permalink)
Trading Apprentice
Richmond, VA/USA
 
Futures Experience: None
Platform: NinjaTrader
Favorite Futures: stocks
 
Posts: 29 since Nov 2012
Thanks: 3 given, 8 received

Fundamental grain outlook sources

Hi all,

This is my first post since the total destruction of my trading account courtesy of naked Gold puts explosion of a couple of years back :-(
I have been reading this threat from the start, and am currently at post 86. Good stuff-can't believe it's still going!

I'm thinking about getting back into option selling (with a few changes from the last time :-) and was thinking about just concentrating on the grains (specifically corn) to start with. My long-term goal is to learn one market at a time and become good at that, then slowly adding more markets until I can talk about them like Ron99 and the rest of you players do.

I want to start reading fundamental reports and get knowledgable about what is causing the longer-term trends. I know The Hightower Report has been mentioned here, although I know it talks about more than just grains. Is it worth the money? How about the USDA reports like WASDE? Good or a waste of time (40 pages!)? Any other reports y'all can think of that might help me become knowledagble in the corn/grains?

Currently reading Cordier's book, listening to a book on the grains business while driving, and reading your posts. I know this can be done for the long-term, since you all can't be just lucky over so many years :-) so I am in this for the long haul (retirement), and ready to study...

Thoughts?

Reply With Quote
 
  #3959 (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


psears View Post
Hi all,

This is my first post since the total destruction of my trading account courtesy of naked Gold puts explosion of a couple of years back :-(
I have been reading this threat from the start, and am currently at post 86. Good stuff-can't believe it's still going!

I'm thinking about getting back into option selling (with a few changes from the last time :-) and was thinking about just concentrating on the grains (specifically corn) to start with. My long-term goal is to learn one market at a time and become good at that, then slowly adding more markets until I can talk about them like Ron99 and the rest of you players do.

I want to start reading fundamental reports and get knowledgable about what is causing the longer-term trends. I know The Hightower Report has been mentioned here, although I know it talks about more than just grains. Is it worth the money? How about the USDA reports like WASDE? Good or a waste of time (40 pages!)? Any other reports y'all can think of that might help me become knowledagble in the corn/grains?

Currently reading Cordier's book, listening to a book on the grains business while driving, and reading your posts. I know this can be done for the long-term, since you all can't be just lucky over so many years :-) so I am in this for the long haul (retirement), and ready to study...

Thoughts?

You can get Hightower, Wyckoff, Gramza and Dow Jones opinion/news for free from OX. Just open an account and I don't think you even have to put any money in it. My current OX account has 11 cents in it.

USDA data is good. USDA forecasts are poor.

If you are doing grains the main thing you will need to watch is weather across the globe. That makes trading grains volatile because weather is unpredictable.

One seasonal in grains I play is price dropping in Sep and rising in Oct.

PS I got nailed on that Sep 2011 Gold drop too. It was so unpredictable.


Last edited by ron99; February 6th, 2015 at 12:15 PM.
Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #3960 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 901 since Nov 2014
Thanks: 1,302 given, 881 received
Forum Reputation: Legendary



psears View Post
Hi all,

This is my first post since the total destruction of my trading account courtesy of naked Gold puts explosion of a couple of years back :-(
I have been reading this threat from the start, and am currently at post 86. Good stuff-can't believe it's still going!

I'm thinking about getting back into option selling (with a few changes from the last time :-) and was thinking about just concentrating on the grains (specifically corn) to start with. My long-term goal is to learn one market at a time and become good at that, then slowly adding more markets until I can talk about them like Ron99 and the rest of you players do.

I want to start reading fundamental reports and get knowledgable about what is causing the longer-term trends. I know The Hightower Report has been mentioned here, although I know it talks about more than just grains. Is it worth the money? How about the USDA reports like WASDE? Good or a waste of time (40 pages!)? Any other reports y'all can think of that might help me become knowledagble in the corn/grains?

Currently reading Cordier's book, listening to a book on the grains business while driving, and reading your posts. I know this can be done for the long-term, since you all can't be just lucky over so many years :-) so I am in this for the long haul (retirement), and ready to study...

Thoughts?


Major part of my option selling program currently is grains & beans. But in my opinion it is important to trade a large variety of commodities to avoid clump risk.

Hightower is free of charge also with deCarley Trading and RJO. It is certainly worth reading.

I also like the weekly report of Arlan Suderman (Water Street Solutions): "MarketSense Weekly". It covers Supply & Demand, weather short-term and long-term etc. You will find it via google.

My favourite regarding grains & beans is the internal reporting of RJO for their customers.

The most important thing about the USDA reports is the reaction of the markets to these reports. I only read the abstract of Hightower.

I wish you a successful re-start of your option selling activities.

Best regards from Austria, Myrrdin

Reply With Quote

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)

July Journal Challenge w/$1100 in prizes from TopstepTrader

July

John @ No BS Day Trading (TBA)

Elite only

An Afternoon with FIO member Softsoap (being rescheduled)

Elite only
     

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 Reviews of 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 Reviews of Brokers and Data Feeds 1 July 30th, 2011 09:16 AM


All times are GMT -4. The time now is 10:05 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-06-24 in 0.15 seconds with 20 queries on phoenix via your IP 54.196.17.157