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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,025 / 5,728
Last Reply:22 Hours Ago (05:26 PM) Attachments:642

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Selling Options on Futures?

Old July 11th, 2015, 12:02 AM   #4481 (permalink)
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Adding more on 80/70/60 DTE to existing position

Hi Ron,
I am newbie who just started after reading your superb thread here. When you open position of short puts at 91-100 DTE, do you advise adding to it at say 80 then 70 then 60 DTE irrespective of ES going up or down?
I shall be grateful if you could advise.
Dilip

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Old July 11th, 2015, 06:00 AM   #4482 (permalink)
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rsm005 View Post
Man, the bad news around /ES keeps coming in waves. First Greece, then China, then Puerto Rico. I'm not sure how far the downside to this will go, seems like everyone is making for the door.

/rsm005/

The actual market is perfect for this strategy. VIX is a little bit high and we see the smart money is buying in supports, so you just need to sell in this supports and wait. Last 7/8/15 I sold some 1510 oct puts at 4 and if next monday we see a gap above 2080 (resistance level) I will be able to close this position in less than 10 days. On the other hand I have to say I have some EOM Sep 1650 sold last 6/25 at 3.1 that are not working that well.

I prefer to use just 25% of my margin instead of 33%. I feel more comfortable.

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Old July 11th, 2015, 07:43 AM   #4483 (permalink)
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daydayup8 View Post
I think OX increased margin about 25%, for example, the SPAN margin for ESV51575p (98 DTE) is $576 today, but it is $759 in OX, the delta is also wrong, it is 0.01 at OX while it should be 0.0315 according to SPAN. Anybody has the same information for this strike in OX?

Thanks.

I don't have IM for that specific strike, but I do have OX's IM for the ESU5 P1650. OX is showing the same as RJO and OEC ... $689.

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Old July 11th, 2015, 07:56 AM   #4484 (permalink)
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I was referred to this thread by Big Mike on my thread here (https://futures.io/brokers-data-feeds/36273-quantatative-trading-intraday-options-data-analysis-software.html#post502886). Is there a place I can download tick data for SPY along with options data? Thank you.

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Old July 11th, 2015, 09:29 AM   #4485 (permalink)
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Futures Edge on FIO

daydayup8 View Post
I think OX increased margin about 25%, for example, the SPAN margin for ESV51575p (98 DTE) is $576 today, but it is $759 in OX, the delta is also wrong, it is 0.01 at OX while it should be 0.0315 according to SPAN. Anybody has the same information for this strike in OX?

Thanks.

If you download and run the IM using SPAN spreadsheet or PC-SPAN after 7 pm ET you will get the IM for the next day. OX does not update their IM until the middle of the night.

$759 is the IM that was released at 7 pm Thu 7/9 for Friday's trading.

$576 is the IM that was released at 7 pm Fri 7/10 for Monday's trading.

This am OX has the correct numbers.

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Old July 11th, 2015, 09:51 AM   #4486 (permalink)
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dvbattul View Post
Hi Ron,
I am newbie who just started after reading your superb thread here. When you open position of short puts at 91-100 DTE, do you advise adding to it at say 80 then 70 then 60 DTE irrespective of ES going up or down?
I shall be grateful if you could advise.
Dilip

Welcome.

No. I always add new positions that are 90-120 DTE.

Look at the table in this post.
https://futures.io/options-cfd-trading/12309-selling-options-futures-422.html#post495393

The option that was 63 DTE hit the exit point and lost money. The options further DTE were able to ride out that dip.

NOTE that post was wrong in stating the positive ROI for the 63 DTE option because it hit the exit point and lost money. It actually lost 20.3% of starting account value.

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Old July 11th, 2015, 09:55 AM   #4487 (permalink)
Market Wizard
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vitrader View Post
I was referred to this thread by Big Mike on my thread here (https://futures.io/brokers-data-feeds/36273-quantatative-trading-intraday-options-data-analysis-software.html#post502886). Is there a place I can download tick data for SPY along with options data? Thank you.

Sorry I can't help you. Anybody else?

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Old July 11th, 2015, 01:36 PM   #4488 (permalink)
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Thank you guys, I am using Dudetooth's excellent PC-SPAN program for the IM. I checked the IM in OX just now, it is updated and it is correct now.

Thanks again.

ron99 View Post
If you download and run the IM using SPAN spreadsheet or PC-SPAN after 7 pm ET you will get the IM for the next day. OX does not update their IM until the middle of the night.

$759 is the IM that was released at 7 pm Thu 7/9 for Friday's trading.

$576 is the IM that was released at 7 pm Fri 7/10 for Monday's trading.

This am OX has the correct numbers.


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Old July 12th, 2015, 12:55 AM   #4489 (permalink)
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Adding to same opened position

Thanks, Ron. The table shows opening different strikes at 63/90/120DTEs. This is not what I meant. What I meant is adding to the same strike opened at 90 DTE but after 10/20 days ie at 80/70 DTE if position is still open but keeping same target of exiting at 50% of original premium at 90DTE. If after 10/20 days, ES is down you may require more cash for new additional options and if ES up then less cash and new premium may have increased or decreased accordingly.

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Old July 12th, 2015, 11:36 AM   #4490 (permalink)
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dvbattul View Post
Thanks, Ron. The table shows opening different strikes at 63/90/120DTEs. This is not what I meant. What I meant is adding to the same strike opened at 90 DTE but after 10/20 days ie at 80/70 DTE if position is still open but keeping same target of exiting at 50% of original premium at 90DTE. If after 10/20 days, ES is down you may require more cash for new additional options and if ES up then less cash and new premium may have increased or decreased accordingly.

The table shows that putting on new positions that have less then 90 DTE is more risky because they are more likely to go on margin call if ES moves aggressively against you.

Because of this I don't add new positions at the same strike or the same month if the DTE is less than 90.

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