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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,479 / 5,734
Last Reply:4 Hours Ago (01:01 AM) Attachments:642

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Selling Options on Futures?

Old July 17th, 2015, 04:09 PM   #4551 (permalink)
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Hi Myrrdin,

It looks like we both have a similar read on Cotton as we have shorted in some of the same strikes! I'm short calls at 70, 72 and 75, and similarly for puts I'm short at 60, 58, and 57.

With the erratic price action over the past weeks, I'm about to start flattening my positions and book my profits. Time to look for another opportunity where ever it comes up!

Cordially,
PM!

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Old July 17th, 2015, 04:36 PM   #4552 (permalink)
World'sWorstTrader
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ron99 View Post
More risk protection in the event of a Black Swan day. ROI is about the same as naked option. Slightly less protection for medium drop (150-250) in futures (because of lower IM and thus lower excess).

I'm using them because I am going on 10 day vacation and won't be in front of computer all day.

I'm not sure yet if I will use them all of the time. I might for retirement accounts and use IMx4. Ultra protection on those.

10 day vacation

When I am out of my office, or on vacation, I take my lap top with me to keep up with positions.
More than once I have placed orders at airports between connecting flights.

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Old July 18th, 2015, 12:20 AM   #4553 (permalink)
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Selling on thu n buying on mon



myrrdin View Post
Interesting. This would imply that it is better to sell on Thursdays than on Fridays.

Did you make this observation regularly ? Or might there be some special effect today ? I could imagine that volatility came down after the situation in Greece gets clearer. Among other things, the German parliament has signed the deal now.

Best regards, Myrrdin

Dan Sheridan who worked with market makers for more than 20 years trading on floor n who has his mentoring firm has said in his few videos on CBOE that market makers start suppressing vols on thu aft noon, so option sellers don't have any advantage of time decay over weekends assuming there are no other major events.

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Old July 18th, 2015, 01:00 AM   #4554 (permalink)
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Anyone who has a position in oil?

It seems as if everyone is trading ES right now. :-)

I am also in oil. I am neutral right now so have an IC on. I am also in oil because sadly I am still with IB (it is almost impossible to find a good futures broker who allows selling options for Canadians) and the IM is better with with CL than ES at IB

I am at 40% after 7 days and was tempted to take it off today but will let it go to 50%


Last edited by Chubbly; July 18th, 2015 at 02:12 AM.
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Old July 18th, 2015, 01:30 AM   #4555 (permalink)
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Futures Edge on FIO

Are you a NinjaTrader user?

 

myrrdin View Post

I quit many short option trades with minor losses or some profits long before my standard limit (double premium) is reached. In case an important resistance is violated, the fundamentals have changed, or before an important report which seems too "dangerous" to me.

Good luck !

Best regards, Myrrdin

Myrrdin - Sorry I am quoting your post from March but I am rereading the thread. When you mention your limit of double premium. Is that the double of the maximum premium for the position or double the premium of your intended take profit level (eg 50% of max prem)

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Old July 18th, 2015, 02:09 AM   #4556 (permalink)
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Chubbly View Post
Myrrdin - Sorry I am quoting your post from March but I am rereading the thread. When you mention your limit of double premium. Is that the double of the maximum premium for the position or double the premium of your intended take profit level (eg 50% of max prem)

That is double the amount I received when I sold the option. Thus, I need (a little bit more than) one winner to compensate for one loser. (I liquidate winners in the commodities often at 10 %.)

Best regards, Myrrdin

PS: Excellent idea to reread the thread. There is a lot of valuable information. No problem to ask questions regarding older posts.

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Old July 18th, 2015, 10:50 PM   #4557 (permalink)
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datahogg View Post
10 day vacation

When I am out of my office, or on vacation, I take my lap top with me to keep up with positions.
More than once I have placed orders at airports between connecting flights.

On my laptop now during vacation.

I never stay anywhere without wifi.

High today 68 degrees in Maine.

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Old July 19th, 2015, 06:59 PM   #4558 (permalink)
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Nice!

68 degrees sounds great Ron! It is 98 here in Houston! Ewwwww!

Hello everyone! Sorry I have not posted in such a long time but I do follow this thread on a daily basis. Glad to see that most are all doing decently with premium selling.

I took a full time job at a major hotel in my area as a Concierge. My schedule was a mess for awhile. Worked two AMs and two PMs and was on call one day a week. But I finally was able to get the schedule that I wanted for PM only. (3:30PM-10:30PM) Perfect for selling options!

Hopefully, I will respond more than I have!

MJ

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Old July 20th, 2015, 11:52 AM   #4559 (permalink)
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Hey all,

I tried to put in a couple of extra positions to begin my experiment about expiry dates and how long they take to reach 50% but have a question.

OESX5 P1700 which expires on Nov. 20th is the standard monthly contract has 0 open interest and 0 volume
OESW5 P1700 which expires on Nov. 30th seems to be a weekly contract has 320 open interest and 0 volume

Here's my question. Is there a difference or issue trading the Nov. 30th rather than the standard monthly contract? Are there liquidity issues as they ramp up over time? I'm tempted to wait until the standard Nov. 20th builds up some volume before trading but wanted some feedback.

Thanks,
/rsm005/

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Old July 20th, 2015, 11:59 AM   #4560 (permalink)
World'sWorstTrader
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rsm005 View Post
Hey all,

I tried to put in a couple of extra positions to begin my experiment about expiry dates and how long they take to reach 50% but have a question.

OESX5 P1700 which expires on Nov. 20th is the standard monthly contract has 0 open interest and 0 volume
OESW5 P1700 which expires on Nov. 30th seems to be a weekly contract has 320 open interest and 0 volume

Here's my question. Is there a difference or issue trading the Nov. 30th rather than the standard monthly contract? Are there liquidity issues as they ramp up over time? I'm tempted to wait until the standard Nov. 20th builds up some volume before trading but wanted some feedback.

Thanks,
/rsm005/

With zero (0) open interest you may not be able to open a position.

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