Selling Options on Futures? - Options on Futures | futures io social day trading
futures io futures trading


Selling Options on Futures?
Updated: Views / Replies:695,274 / 6,330
Created: by ron99 Attachments:735

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • 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.

-- Big Mike, Site Administrator

Reply
 735  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #4611 (permalink)
Trading Apprentice
Barcelona
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: TS
Favorite Futures: Future options
 
Posts: 14 since Mar 2015
Thanks: 7 given, 7 received

I would like to share a link I've found interesting:

Think Tank Charts 2 - David Larew - Public ChartList - StockCharts.com

It is very profitable to sell PUTS in the green dots. You don't need to wait for 1 month to lose 50% of the value. In my case my record is in 4 days. I hope this link will help you in the future

Reply With Quote
The following 2 users say Thank You to Hills for this post:
 
  #4612 (permalink)
Trading for Fun
Riga Latvia
 
Futures Experience: Intermediate
Platform: Zaner 360
Favorite Futures: commodyties
 
Posts: 97 since Jan 2013
Thanks: 352 given, 70 received


ron99 View Post
But a higher delta.

Thanks for the study.

Why do the spreads have a higher delta?

For study I used ~ 100 point spread (for example, ESJ3 1250/1150) .

Reply With Quote
The following user says Thank You to uuu1965 for this post:
 
  #4613 (permalink)
Elite Member
Huntington WV
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: ES, CL
 
TheTradeSlinger's Avatar
 
Posts: 402 since Jun 2015
Thanks: 639 given, 508 received


I'm going to walk through an example here to see if I have the right idea.

Using data for the ES futures option from: CMEGROUPOPTIONS

Ok, lets take the 1800 strike put for September.

The last price was 1.70. 1.70 divided by .25 (tick value) times $12.50 = $85 premium to the seller minus fees and commissions? (assume we could sell at the last price)

I've got to be doing something wrong because that seems incredible.

Reply With Quote
 
  #4614 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,721 received
Forum Reputation: Legendary


TheTradeSlinger View Post
I'm going to walk through an example here to see if I have the right idea.

Using data for the ES futures option from: CMEGROUPOPTIONS

Ok, lets take the 1800 strike put for September.

The last price was 1.70. 1.70 divided by .25 (tick value) times $12.50 = $85 premium to the seller minus fees and commissions? (assume we could sell at the last price)

I've got to be doing something wrong because that seems incredible.

It's easier to multiply price by 50.

Why is that incredible?

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #4615 (permalink)
Elite Member
Huntington WV
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: ES, CL
 
TheTradeSlinger's Avatar
 
Posts: 402 since Jun 2015
Thanks: 639 given, 508 received


ron99 View Post
It's easier to multiply price by 50.

Why is that incredible?

Its something I've never studied and it seems like a potentially useful way of making steady income.

Thank you for the webinar you did ron99,

Reply With Quote
The following user says Thank You to TheTradeSlinger for this post:
 
  #4616 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,721 received
Forum Reputation: Legendary


uuu1965 View Post
For study I used ~ 100 point spread (for example, ESJ3 1250/1150) .

FYI he used a short leg with a 9.72 delta and a long leg with a 4.23 delta.

Reply With Quote
 
  #4617 (permalink)
Trading Apprentice
Vlaanderen Belgium
 
Futures Experience: Advanced
Platform: IB
Favorite Futures: Oil, spy, es, estx50
 
Posts: 19 since Jul 2015
Thanks: 1 given, 3 received


TheTradeSlinger View Post
Its something I've never studied and it seems like a potentially useful way of making steady income.

Obviously someone who hasn't been active in the stock market for a long period.
A 10% drop is perfectly possible for so many trading weeks.

Please calculate how many succesful months you have to make to recover from one losing month.

I don't say you should not make this trade. But i shiver when i hear words like "incredible" and "steady income". It suggests that you were not in the market in 2008 or 2001. Those who were, would never use that kind of words, because history told them a very valuable lesson.

Reply With Quote
 
  #4618 (permalink)
Trading for Fun
Riga Latvia
 
Futures Experience: Intermediate
Platform: Zaner 360
Favorite Futures: commodyties
 
Posts: 97 since Jan 2013
Thanks: 352 given, 70 received

Safe trading

Hi,
I try to develop further as far as possible safe put selling on ES (behind a IM cushion, low delta etc.) and establish some rulles or parametrs (without any predictions - that remain for other guys).
It's clear that no one strategy give you a 100% safety and there isn't any Holy grail. By being in the market you take the risk and try to manage it.

1. September and October 2008: largest drop in 30 days = 379.75 points
(worldwide mortage and credit crisis, bank collapse etc.) - best solution: avoid to sell puts (we were previously aware of that).
2. August 2011: largest drop in 30 days = 231.25 points
(debt crisis in Europe, USA government bailout, Standard&Poor's downgraded America's credit reiting) - best solution: avoid to sell puts (we were previously aware of that).
3. October 2014: largest drop in 30 days = 157.75 points - what the reasons? or just normal market correction? Could we know before? Any ideas?

P.S. Thanks Ron for data of largest drop.

Reply With Quote
The following 2 users say Thank You to uuu1965 for this post:
 
  #4619 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,721 received
Forum Reputation: Legendary


jawadde001 View Post
Obviously someone who hasn't been active in the stock market for a long period.
A 10% drop is perfectly possible for so many trading weeks.

Please calculate how many succesful months you have to make to recover from one losing month.

I don't say you should not make this trade. But i shiver when i hear words like "incredible" and "steady income". It suggests that you were not in the market in 2008 or 2001. Those who were, would never use that kind of words, because history told them a very valuable lesson.

Please read the whole thread before you come in here making comments like this.

We have risk controls in place to limit losses.

The only word he used that would be inaccurate is "steady". The income from this trading style is not steady monthly. It is up and down. But on a yearly basis you could say steady.

Reply With Quote
The following 2 users say Thank You to ron99 for this post:
 
  #4620 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,721 received
Forum Reputation: Legendary



uuu1965 View Post
Hi,
I try to develop further as far as possible safe put selling on ES (behind a IM cushion, low delta etc.) and establish some rulles or parametrs (without any predictions - that remain for other guys).
It's clear that no one strategy give you a 100% safety and there isn't any Holy grail. By being in the market you take the risk and try to manage it.

1. September and October 2008: largest drop in 30 days = 379.75 points
(worldwide mortage and credit crisis, bank collapse etc.) - best solution: avoid to sell puts (we were previously aware of that).
2. August 2011: largest drop in 30 days = 231.25 points
(debt crisis in Europe, USA government bailout, Standard&Poor's downgraded America's credit reiting) - best solution: avoid to sell puts (we were previously aware of that).
3. October 2014: largest drop in 30 days = 157.75 points - what the reasons? or just normal market correction? Could we know before? Any ideas?

P.S. Thanks Ron for data of largest drop.

There was no way to predict the Oct 14 drop. No red flag like the other drops. If you stay with IMx3 and a lower delta then the max drawdown is not catastrophic. Each person needs to decide what max drawdown they are comfortable with and trade accordingly.

Reply With Quote
The following user says Thank You to ron99 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)

FuturesTrader71: TBA

Elite only

Al Brooks: TBA

Elite only

Jigsaw Trading: TBA

Oct 19

RandBots: TBA

Oct 24
     

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


All times are GMT -4. The time now is 05:52 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
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.
no new posts
Page generated 2017-09-25 in 0.08 seconds with 19 queries on phoenix via your IP 54.156.67.164