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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,200 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old August 12th, 2015, 05:18 PM   #4721 (permalink)
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rsm005 View Post
That's crazy. That margin number was lifted straight from the platform when the trade was made. I spoke to my broker and she said that there can be discrepancies like that and to check the statement to be 100% sure!!!! I've tried to use dudetooth's calculator but just can't figure it out. I'll spend a bit more time on that and see what comes out of it.

/rsm005/

Which platform are you using? I'm guessing it can't correctly compute IM for the end of the month options.

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Old August 12th, 2015, 05:29 PM   #4722 (permalink)
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Ron,

Are you using all the money to sell put or do you leave some extra money in your account since it is traditionally weak season for ES (such as Sell in May, go away...)?

Thanks.

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Old August 12th, 2015, 05:52 PM   #4723 (permalink)
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ron99 View Post
Which platform are you using? I'm guessing it can't correctly compute IM for the end of the month options.

Zaner360.

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Old August 12th, 2015, 05:53 PM   #4724 (permalink)
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daydayup8 View Post
Ron,

Are you using all the money to sell put or do you leave some extra money in your account since it is traditionally weak season for ES (such as Sell in May, go away...)?

Thanks.

I ignore the seasonalities of ES. Virtually none of them are consistent year to year. My accounts are full with ES puts right now. 2,560 short puts.

ES has been in a narrow 139 point range the whole year. 1988 to 2128.
Since Feb 4th the range has been 2039 to 2128. 89 point range.

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Old August 12th, 2015, 06:02 PM   #4725 (permalink)
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Futures Edge on FIO

Are you a NinjaTrader user?

 

rsm005 View Post
Zaner360.

They just started giving IM on options last year I think. It is not without mistakes yet. Always double check with your statement.

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Old August 12th, 2015, 06:03 PM   #4726 (permalink)
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Thank you, I will re-evaluate my positions and put a little more. I have been using only half of the money since June.
Too cautious maybe...


ron99 View Post
I ignore the seasonalities of ES. Virtually none of them are consistent year to year. My accounts are full with ES puts right now. 2,560 short puts.

ES has been in a narrow 139 point range the whole year. 1988 to 2128.
Since Feb 4th the range has been 2039 to 2128. 89 point range.


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Old August 12th, 2015, 06:05 PM   #4727 (permalink)
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First trade on in options today.

Short 1 ES 1680 Put at .50.

Starting super small to get a feel for how margins change along with the market.

Thanks again to @ron99 and others on this thread, wouldn't have started selling options without it.

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Old August 12th, 2015, 06:26 PM   #4728 (permalink)
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TheTradeSlinger View Post
First trade on in options today.

Short 1 ES 1680 Put at .50.

Starting super small to get a feel for how margins change along with the market.

Thanks again to @ron99 and others on this thread, wouldn't have started selling options without it.

Starting small is the best way!

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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Old August 12th, 2015, 06:38 PM   #4729 (permalink)
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ron99 View Post
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The ~240% in 31 months is equal to 3.9% per month compounded monthly. That is a 58% per year rate.

The ~228% in 31 months is equal to 3.8% per month compounded monthly. That is a 56% per year rate.

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Old August 12th, 2015, 09:12 PM   #4730 (permalink)
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rsm005 View Post
To add a bit more color the the trade 130 days out vs the one that's approx. 100 days out, here's how the margin has behaved after the most recent pounding by the Chinese currency devaluation.

Contract: OESV5 P1750
Quantity: 80
Premium: $4.55
Days to Expiration at Open: 93
Initial Margin: $978
Days Open: 8
Current IM: $872
Margin as of 8/12/2015: $810

Contract: OEWX5 P1750
Quantity: 40
Premium: $9.75
Days to Expiration at Open: 132
Initial Margin: $978
Days Open: 3
Current IM: $1,315 (ouch)
Margin as of 8/12/2015: $1,251

Notice how little time has actually affected the position further out in time. That $9 premium looked very sexy .... but it would have been a far better use of capital to have a larger position in the OESV5.

/rsm005/

So how far in the red did things go at the worst point?

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