NexusFi: Find Your Edge


Home Menu

 





Selling Options on Futures?


Discussion in Options

Updated
      Top Posters
    1. looks_one ron99 with 2,221 posts (4,489 thanks)
    2. looks_two SMCJB with 346 posts (733 thanks)
    3. looks_3 kevinkdog with 341 posts (400 thanks)
    4. looks_4 myrrdin with 288 posts (408 thanks)
      Best Posters
    1. looks_one SMCJB with 2.1 thanks per post
    2. looks_two ron99 with 2 thanks per post
    3. looks_3 myrrdin with 1.4 thanks per post
    4. looks_4 kevinkdog with 1.2 thanks per post
    1. trending_up 1,934,752 views
    2. thumb_up 9,259 thanks given
    3. group 458 followers
    1. forum 7,370 posts
    2. attach_file 794 attachments




 
Search this Thread

Selling Options on Futures?

  #4271 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785


rsm005 View Post
Ron,

One quick question. Do you guys prefer positions that expire EOM or middle of the month. Does it even matter with this your method?

Thanks,
/rsm005/

The EOM options have far less volume and OI. Makes it harder to get in and out.

Started this thread Reply With Quote
The following 2 users say Thank You to ron99 for this post:

Can you help answer these questions
from other members on NexusFi?
NexusFi Journal Challenge - April 2024
Feedback and Announcements
ZombieSqueeze
Platforms and Indicators
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Request for MACD with option to use different MAs for fa …
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Retail Trading As An Industry
58 thanks
Battlestations: Show us your trading desks!
50 thanks
NexusFi site changelog and issues/problem reporting
47 thanks
GFIs1 1 DAX trade per day journal
32 thanks
What percentage per day is possible? [Poll]
31 thanks

  #4272 (permalink)
 RBtrader 
Goshen Indiana USA
 
Experience: Intermediate
Platform: TOS, TradeStation
Trading: ES
Posts: 11 since Aug 2012
Thanks Given: 113
Thanks Received: 18


ron99 View Post
The EOM options have far less volume and OI. Makes it easier to get in and out.

Are you sure? I would have thought less volume and OI makes it more difficult to get out of.

Thanks again for this thread Ron! I have been reading and re-reading many pages of the thread and have been doing some small position option trades for several months now. Listening and observing the many "truths" offered here builds confidence and profits!

Reply With Quote
The following 2 users say Thank You to RBtrader for this post:
  #4273 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785



RBtrader View Post
Are you sure? I would have thought less volume and OI makes it more difficult to get out of.

Thanks again for this thread Ron! I have been reading and re-reading many pages of the thread and have been doing some small position option trades for several months now. Listening and observing the many "truths" offered here builds confidence and profits!

My mistake. Fixed.

You're welcome.

Started this thread Reply With Quote
The following user says Thank You to ron99 for this post:
  #4274 (permalink)
 rsm005 
vancouver BC/Canada
 
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
Thanks Given: 13
Thanks Received: 205

First trade made using my actual trading account. I'll try to keep posting on here to give you guys an idea of how its playing out.

Commodity: ES
Option: OESU5 P1700
Expiration: Sept. 18th 2015
Premium: $5.25
Quantity: 50
Initial Margin: $45,450
Current S&P: 2111.25
Date Position Opened: 6/3/2015
Days to Expiration: 102


Thanks,
/rsm005/

Reply With Quote
The following 2 users say Thank You to rsm005 for this post:
  #4275 (permalink)
 TradeAnonymous 
Chicago IL, USA
 
Posts: 8 since Jun 2015

That initial margin looks way off.... Another mention: If Fed raises rates before Sept that option is going to go in your face faster than you can blink an eye, very risky position. If you're selling options in ES right now, you should be selling credit put spreads so you at least know where your risk is limited to. Helps weather volatility too.

Reply With Quote
  #4276 (permalink)
 TradeAnonymous 
Chicago IL, USA
 
Posts: 8 since Jun 2015

My mistake, did not notice your lot size.

Reply With Quote
  #4277 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785


TradeAnonymous View Post
That initial margin looks way off.... Another mention: If Fed raises rates before Sept that option is going to go in your face faster than you can blink an eye, very risky position. If you're selling options in ES right now, you should be selling credit put spreads so you at least know where your risk is limited to. Helps weather volatility too.

Don't pay attention to this guy. He doesn't know anything for sure.

Started this thread Reply With Quote
  #4278 (permalink)
Chubbly
Ottawa
 
Posts: 87 since May 2015
Thanks Given: 67
Thanks Received: 88

Ron: I was just curious if you would share what your portfolio ratios are approximately? I assume that you trade other futures other than ES. The reason l ask is I am trying to calculate what a safe % of my portfolio I want to apply to a single underlying. I have read a few places that 30 was a good number to ensure that a portfolio is diverse enough that there is a low degree of correlation. I think it would be hard to find that many futures options products that I could apply a variation of this strategy. I could be wrong I am still very new to this compared to you.

Reply With Quote
  #4279 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785


Chubbly View Post
Ron: I was just curious if you would share what your portfolio ratios are approximately? I assume that you trade other futures other than ES. The reason l ask is I am trying to calculate what a safe % of my portfolio I want to apply to a single underlying. I have read a few places that 30 was a good number to ensure that a portfolio is diverse enough that there is a low degree of correlation. I think it would be hard to find that many futures options products that I could apply a variation of this strategy. I could be wrong I am still very new to this compared to you.

I don't know if my current type of trading should be used by traders not in my situation.

I currently am only selling ES puts. Nothing else.

Others that are more diversified should answer your question.

Started this thread Reply With Quote
The following 2 users say Thank You to ron99 for this post:
  #4280 (permalink)
 rsm005 
vancouver BC/Canada
 
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
Thanks Given: 13
Thanks Received: 205


Ron,

I know you're getting peppered so I apologize for continuing to pile on but let me ask you something about positioning. Suppose the following scenario, you trade with 100 contracts. Do you sell all of them at a single strike or do you split it up across multiple strikes expiring at multiple times?

I'm trying to figure out the best way to structure trades going forward. I put my 50 contracts at 1700 but was debating putting 20 at 1700 and 40 at 1600 and then thought of putting 20 at 1700 in Sept and 50 at 1650 expiring in August. I just kept things simple for now but wanted to know if there is a preference?

/rsm005/

Reply With Quote





Last Updated on July 28, 2023


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts