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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,414 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old March 2nd, 2015, 03:07 PM   #4041 (permalink)
Trading Apprentice
Richmond, VA/USA
 
Futures Experience: None
Platform: NinjaTrader
Favorite Futures: stocks
 
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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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Old March 2nd, 2015, 04:12 PM   #4042 (permalink)
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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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Old March 2nd, 2015, 04:34 PM   #4043 (permalink)
Market Wizard
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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Old March 2nd, 2015, 05:38 PM   #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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Old March 2nd, 2015, 09:14 PM   #4045 (permalink)
Market Wizard
OH
 
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Futures Edge on FIO

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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Old March 3rd, 2015, 05:48 PM   #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 06:46 PM.
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Old March 4th, 2015, 12:39 AM   #4047 (permalink)
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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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Old March 4th, 2015, 10:37 AM   #4048 (permalink)
Market Wizard
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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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Old March 4th, 2015, 02:17 PM   #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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Old March 4th, 2015, 02:20 PM   #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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