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


Selling Options on Futures?
Started: by ron99 Views / Replies:609,836 / 5,869
Last Reply: Attachments:659

Welcome to futures io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike

Reply
 659  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #4341 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,452 since Jul 2011
Thanks: 672 given, 4,161 received
Forum Reputation: Legendary


rsm005 View Post
Ron,

Question. I don't have the know to conduct any back tests or get the old data for this. During the Sept/Oct swing down would you have been pushed out of the position due to a margin call? My thought is if that dip can be held then the only thing that I can see forcing an exist is an actual correction in the S&P, but I don't want to get ahead of myself.

Also you mentioned running an analysis of ES against the VIX earlier. Would you be comfortable sharing the results?

Thanks
/rsm005/

Here's your answer. For research, entered options on worst day. 9/19/14.
https://futures.io/options-cfd-trading/12309-selling-options-futures-411.html#post490254

No margin call for options > 63 DTE. Yes for options < 64 DTE.

This post shows why lower DTE went on margin call.
https://futures.io/options-cfd-trading/12309-selling-options-futures-416.html#post493812

I ran another test starting on 10/08/14. Options that were 44 DTE went on margin call. Options 72 or 100 DTE did not. (not posted)

I never have done any research using VIX. I mentioned about researching time decay. I didn't find out anything on that that we didn't already know.

This thread has the free program (if you already have Excel) and links to data for 2013+ so you can do your own reasearch. Dudetooth's SPAN program.
https://futures.io/options-cfd-trading/29125-pc-span.html

Reply With Quote
The following 4 users say Thank You to ron99 for this post:
 
  #4342 (permalink)
Trading Apprentice
Orlando Florida
 
Futures Experience: Advanced
Platform: Multiple
Favorite Futures: ES
 
Posts: 13 since Jun 2013
Thanks: 12 given, 4 received


ron99 View Post
I am now with DeCarley Trading and her customer service is the best I have ever seen. Gain, the FCM I am using through her, has had a few minor issues, but they do get fixed with Carley doing all of the calling to them. I highly recommend her.

Ron,

How do you get comfortable with firm (broker) risk?

Luis


Last edited by UnZane; June 13th, 2015 at 12:14 AM.
Reply With Quote
 
  #4343 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 214 since Jan 2015
Thanks: 13 given, 172 received



ron99 View Post
Here's your answer. For research, entered options on worst day. 9/19/14.
https://futures.io/options-cfd-trading/12309-selling-options-futures-411.html#post490254

No margin call for options > 63 DTE. Yes for options < 64 DTE.

This post shows why lower DTE went on margin call.
https://futures.io/options-cfd-trading/12309-selling-options-futures-416.html#post493812

I ran another test starting on 10/08/14. Options that were 44 DTE went on margin call. Options 72 or 100 DTE did not. (not posted)

I never have done any research using VIX. I mentioned about researching time decay. I didn't find out anything on that that we didn't already know.

This thread has the free program (if you already have Excel) and links to data for 2013+ so you can do your own reasearch. Dudetooth's SPAN program.
https://futures.io/options-cfd-trading/29125-pc-span.html


Thank you so much my friend.

/rsm005/

Reply With Quote
The following user says Thank You to rsm005 for this post:
 
  #4344 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 783 since Nov 2014
Thanks: 1,143 given, 662 received


UnZane View Post
Ron,

How do you get comfortable with firm (broker) risk?

Luis

I was customer of Man Financial, before they went bancrupt. Fortunately I left them early enough, but since then I am conscious of this risk.

I have distributed my money to three brokers independent of each other. Currently I trade with DeCarley, RJO, and brokerjet. (At brokerjet I hold my stocks account, but I could trade futures and options in case of emergency.) Thus, in case of problems of one of the brokers I only lose a part of my money. Additionally, in case one of the accounts is blocked for some days (no trade possible), I could enter off-setting trades in one of the other accounts.

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
  #4345 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,452 since Jul 2011
Thanks: 672 given, 4,161 received
Forum Reputation: Legendary

Futures Edge on FIO

What value do you place on the webinars on FIO?

 

UnZane View Post
Ron,

How do you get comfortable with firm (broker) risk?

Luis

Multiple firms.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #4346 (permalink)
Elite Member
Dallas, Texas
 
Futures Experience: Beginner
Platform: TOS
Favorite Futures: IWM Options
 
Posts: 175 since Oct 2012
Thanks: 417 given, 90 received


UnZane View Post
Ron,

How do you get comfortable with firm (broker) risk?

Luis

A lot of the brokers tout the SIPC guarantee up to 500k, I don't think that applies to futures but stock and options.

Reply With Quote
 
  #4347 (permalink)
Trading Apprentice
Boise, ID
 
Futures Experience: Advanced
Platform: Thinkorswim
Favorite Futures: ES
 
Posts: 10 since Feb 2015
Thanks: 7 given, 7 received


ron99 View Post
Multiple firms.

I think trading with one of the more established public firms such as TD Ameritrade (Thinkorswim) can substantially reduce the risk of your broker going bust. Public companies are subject to more scrutiny and oversight so they can't just disappear with your money overnight. I've been selling tons of ES puts with Thinkorswim of TD Ameritrade and happy with their service so far.


Last edited by hain241; June 13th, 2015 at 04:18 PM.
Reply With Quote
 
  #4348 (permalink)
Trading for Fun
St Paul, MN, USA
 
Futures Experience: Advanced
Platform: Abacus
Broker/Data: RJO, Interactive Brokers
Favorite Futures: Commodity Futures & Options
 
Posts: 193 since Jan 2014
Thanks: 112 given, 182 received


hain241 View Post
I think trading with one of the more established public firms such as TD Ameritrade (Thinkorswim) can substantially reduce the risk of your broker going bust. Public companies are subject to more scrutiny and oversight so they can't just disappear with your money overnight. I've been selling tons of ES puts with Thinkorswim of TD Ameritrade and happy with their service so far.

In general, I agree with your statement about larger, public firms, but let's not forget that Man Financial was public and went bust over a weekend, and the largest banks and brokerages on Wall Street accepted govt bailouts (TARP, immediate conversion to a commercial bank, etc) to avoid going bust in short order. I realize that a few in the bailout group were 'forced' to join the group for public perception reasons, but the fact remains that in a crisis, the financial strength of any bank/brokerage/trader can disappear in days.

Reply With Quote
 
  #4349 (permalink)
Elite Member
Colorado
 
Futures Experience: Advanced
Platform: MultiCharts
Broker/Data: IB & Iqfeed
Favorite Futures: ES , CL
 
sptrader's Avatar
 
Posts: 522 since Apr 2010
Thanks: 1,061 given, 662 received


hain241 View Post
I think trading with one of the more established public firms such as TD Ameritrade (Thinkorswim) can substantially reduce the risk of your broker going bust. Public companies are subject to more scrutiny and oversight so they can't just disappear with your money overnight. I've been selling tons of ES puts with Thinkorswim of TD Ameritrade and happy with their service so far.

************************************************************
What are their options margins for ES ? (better than IB at least ?)
I'm looking for a good options broker, IB is fine for Futures but not options.

Reply With Quote
 
  #4350 (permalink)
Trading Apprentice
Boise, ID
 
Futures Experience: Advanced
Platform: Thinkorswim
Favorite Futures: ES
 
Posts: 10 since Feb 2015
Thanks: 7 given, 7 received



sptrader View Post
************************************************************
What are their options margins for ES ? (better than IB at least ?)
I'm looking for a good options broker, IB is fine for Futures but not options.

Thinkorswim uses SPAN margin for futures options. IB requires 2 or 3 times of SPAN so it's definitely not a good choice for futures options sellers in terms of margin requirements at least.

Reply With Quote
The following 2 users say Thank You to hain241 for this post:

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)

PTMC Protrader Platform First Look w/Sergey Sokolov

Elite only

Spring Grains Outlook w/Sean Lusk @ Walsh Trading

Elite only

FIO Video Journal Challenge featuring NinjaTrader ($2,000+ of prizes)

April

Process above all else w/Anthony Crudele @ Futures Radio Show

Elite only

Machine Learning - Quantitative Trading w/Martin Froehler @ Quantiacs

Elite only

Market Dynamics w/Peter Davies @ Jigsaw Trading

Elite only

Ask Me Anything w/Patrick Rooney @ Trading Technologies

Apr 18

Ask Me Anything w/FuturesTrader71

Apr 19

Machine Learning w/Kris Longmore

Elite only

Market Analysis w/Dave Forss

Apr 25

Introducing iSystems with Stage 5 Trading

Apr 27
     

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


All times are GMT -4. The time now is 03:46 PM.

no new posts
Page generated 2017-03-25 in 0.14 seconds with 20 queries on phoenix via your IP 54.166.19.237