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Selling Options on Futures?
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Created: by ron99 Attachments:699

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Selling Options on Futures?

  #4041 (permalink)
Trading Apprentice
Richmond, VA/USA
 
Futures Experience: None
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Awesome reply Ron, and pretty much what I thought you were going to say regarding Cordier's apparently inappropriate use of longer time frame history charts (I mean, who HASN'T heard of the recent fracking revolution?!?!)
My goal now is to spend A LOT of time studying the EIA website which has a ton of fundamental info and try to learn some good old fashioned supply and demand metrics.

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  #4042 (permalink)
Trading Apprentice
Richmond, VA/USA
 
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BTW Ron, what would you think of selling May '15 calls? The premiums seem pretty fat right now (EIA showing volatility being fairly high currently). Maybe sell at 3.25 -3.45 for $400 -$240 per contract? Or would you go even farther out?

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  #4043 (permalink)
Market Wizard
Cleveland, OH
 
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psears View Post
BTW Ron, what would you think of selling May '15 calls? The premiums seem pretty fat right now (EIA showing volatility being fairly high currently). Maybe sell at 3.25 -3.45 for $400 -$240 per contract? Or would you go even farther out?

I would never sell NG calls with a delta 0.10 to 0.18. But that is my style.

But selling calls with an eye on the weather would be a good idea now.

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  #4044 (permalink)
Trading Apprentice
Richmond, VA/USA
 
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I'm at work so I can't see the deltas right now, but are you talking more like 3.75?
That premium for May '15 is only $60 now; even less after commissions. Would that even be worth it for you? Or do you just buy a whole lot of contracts?

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  #4045 (permalink)
Market Wizard
Cleveland, OH
 
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psears View Post
I'm at work so I can't see the deltas right now, but are you talking more like 3.75?
That premium for May '15 is only $60 now; even less after commissions. Would that even be worth it for you? Or do you just buy a whole lot of contracts?

May is too low DTE. Look at June.

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  #4046 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
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So I added a second position today.

Sold 3 May26th GC P1000 at 1.1 with a delta of .01
Bought 1 May26th GC P1010 at 1.6 as a hedge

Total Margin = $886 per contract.
Projected percentage gain = 6.3%

I'm watching the price to see if an opportunity to leg into the call side shows up. I'm eying GC C1550 with a delta of .02 but for now mostly maintaining my cash position and watching my margins.

/rsm005/


Last edited by rsm005; March 3rd, 2015 at 05:46 PM.
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  #4047 (permalink)
Elite Member
Singapore
 
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ron99 View Post
.

I use DeCarley (Carley Garner) and trade at OEC (owned by Gain). Great customer service by Carley.

Could you let me know

1. whether OEC margin requirement is at minimum span margin?
2. Advantages and disadvantages of OEC over DeCarley?

Thanks

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  #4048 (permalink)
Market Wizard
Cleveland, OH
 
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tbs8877 View Post
Could you let me know

1. whether OEC margin requirement is at minimum span margin?
2. Advantages and disadvantages of OEC over DeCarley?

Thanks

1. yes

2. OEC might be a little lower commissions. But when there is a problem Carley knows who to talk to at Gain to get the problem fixed. If you are at OEC you will just talk to the person paid to answer phones or chats. No guarantee they will know how to get your problem fixed quickly.

The little bit more you pay to Carley can easily be made up with her fixing a problem quicker than you going direct to OEC. Getting one problem fixed quicker and getting a trade done sooner can easily pay for her increased costs. Plus you have less stress dealing with the OEC people on the phone.

Just so everybody reading this understands, OEC (Open E Cry), Futures Online and Gain are the same company.

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The following 2 users say Thank You to ron99 for this post:
 
  #4049 (permalink)
Trading Apprentice
Zurich
 
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Hi Ron, just sold my first put 1550 June 15 for 4.10 . Additionally excess margin dropped some 630.00 . Is that a fair margin requirement? The firm is Ironbeam.

Kind Regards

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  #4050 (permalink)
Trading for Fun
Reno, USA
 
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Coffee


Amazing volatility in coffee; down 9 yesterday almost up 9 today. Definitely oversold so looking for a bounce up. I have /KC 230 calls for about 2 weeks now got in at 0.25/contract

Vijay

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