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 1,950,287 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?

  #431 (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


MJ888 View Post
Here we go, an example of what I am referring to britkid99: CL options are closed right now. The market price on my April 105 calls is showing 0.82037 but the last trade on the IB platform is showing 0.72 and when I check for settlement price elsewhere it is showing 0.74 so where is IB getting 0.82037 from? I have seen even wider discrepancies in the past.

Ron99, what does it the settlement show in OX for the April 105 calls?

On the options chain it shows .74.

All of my account balances right now reflect the settlement prices or the last trade if something has traded since the market reopened tonight.

OX used to pick up the settlements sometime overnight. Now they get them before the markets reopen.

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Build trailing stop for micro index(s)
Psychology and Money Management
Exit Strategy
NinjaTrader
Better Renko Gaps
The Elite Circle
 
  #432 (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


MJ888 View Post
Yes Britkid99 I am referring to exactly the market price and market value on the account panel. And yes, you are right that sometimes the numbers can be in my favor too. Either way, it is not reflecting my true P/L, especially when the markets are closed. I too keep a cash buffer but the combination of inflated margins and wrong closing prices can distort the value of an account temporarily since the numbers usually correct themselves around midnight.

Ron99, do you have this issue with your options positions at OX? At IB, the market price of the premium sometimes fluctuates even when the markets are closed.

No.

Do you mean the premium changes when the markets are closed on the weekends? Because a lot of option markets are open 23 hours a day during the week.

Started this thread Reply With Quote
  #433 (permalink)
MJ888
Houston, Texas
 
Posts: 165 since Sep 2012
Thanks Given: 37
Thanks Received: 150



ron99 View Post
No.

Do you mean the premium changes when the markets are closed on the weekends? Because a lot of option markets are open 23 hours a day during the week.

No not over the weekends or holidays. But they do change when markets are open, which is fine but the premium price does not reflect the actual price. Like the example we are talking about, the April CL 105 calls, futures are a touch lower now. We all agree that settlement was 0.74 and there has been no trades in the night session but the premium in my IB account page has changed from 0.80 to 0.83, currently it is showing 0.81268

Reply With Quote
  #434 (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


kronie View Post
I am really glad there's a topic on options on futures,

this is something that I always wanted to get back around to and learn,

I'll take the time to read and catch up on this thread....

hey, Micro E-mini futures, how do you find them in contrast to Options of Futures?

Welcome. Enjoy the reading.

I can't help you on the micros.

Started this thread Reply With Quote
  #435 (permalink)
MJ888
Houston, Texas
 
Posts: 165 since Sep 2012
Thanks Given: 37
Thanks Received: 150

I don't trade micros either. I traded ES options awhile ago but have not recently.

Reply With Quote
  #436 (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


kronie View Post
yeah, these were my sentiments too,

one basic question, do you try to avoid the Financials, given their significant volatility?, especially since they go towards extreme ranges within the mean / average trading range of prices, and from an options perspective, only complex condor and straddles might possibly benefit profitably, certainly not straight forward calls or puts in anticipation of predictable or anticipate one direction price moves?

these are some of the questions and issues that drove me from equity / index option trading at the CBOT and ASE, and towards basket trading ETF's and Emini futures....

Welcome.

I avoid financials because is is hard enough keeping track of fundamentals of 16 commodities that I trade. I just don't have time for more.

Started this thread Reply With Quote
  #437 (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


MJ888 View Post
No not over the weekends or holidays. But they do change when markets are open, which is fine but the premium price does not reflect the actual price. Like the example we are talking about, the April CL 105 calls, futures are a touch lower now. We all agree that settlement was 0.74 and there has been no trades in the night session but the premium in my IB account page has changed from 0.80 to 0.83, currently it is showing 0.81268

That's crazy. No reason for those prices.

Started this thread Reply With Quote
  #438 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,647 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338


MJ888 View Post
No not over the weekends or holidays. But they do change when markets are open, which is fine but the premium price does not reflect the actual price. Like the example we are talking about, the April CL 105 calls, futures are a touch lower now. We all agree that settlement was 0.74 and there has been no trades in the night session but the premium in my IB account page has changed from 0.80 to 0.83, currently it is showing 0.81268

Isn't that just the current quote worst case price?

I trade futures spreads, and sometimes overnight the prices will have no quotes (or just a bid, with no ask price, or vice versa), so I see some crazy prices. Maybe that is what you are seeing in your options account.

Follow me on Twitter Reply With Quote
  #439 (permalink)
 
kronie's Avatar
 kronie 
NYC + NY / USA
 
Experience: Advanced
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Trading: EMD, 6J, ZB
Posts: 796 since Oct 2009


MJ888 View Post
I just checked the CME prices for April CL 105 calls. High today was 0.78 Low was 0.72 and closed at 0.72 so basically it NEVER even traded at 0.82 so why does it say 0.82 on my IB account page?

this sort of problem used to be very, very common, when we traded unlisted or OTC options,

then came along the CBOE and standardization did away with these "away" quotes, where settlement prices and wildly different quotes for the same underlying occur on more than one exchange...

cavaet emptor?

caver emperor?

who knows...

Reply With Quote
  #440 (permalink)
MJ888
Houston, Texas
 
Posts: 165 since Sep 2012
Thanks Given: 37
Thanks Received: 150


Now that April CL futures are down 73 cents the price on the April CL 105 calls are showing 0.63 which is more towards where it should be.

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