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


Selling Options on Futures?
Updated: Views / Replies:671,456 / 6,238
Created: by ron99 Attachments:729

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
 729  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #481 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,651 since Jul 2011
Thanks: 770 given, 4,579 received
Forum Reputation: Legendary


psears View Post
Hey does anybody have any thoughts on today's corn action? It would be great if someone with access to a good quote screen could fill us newbie's in on the changes in volatility and pricing that occurred from yesterday to today. Considering the size of the spike and how it reversed direction, it should have shaken things up quite a bit! This may make a good case study of why it is important to be selling far out of the money.

Thoughts?

Corn normally goes up in Jan and Feb right after this report.

Even though Mar corn settled 10.00 higher the Mar corn calls above 7.00 settled lower???

Reply With Quote
 
  #482 (permalink)
Elite Member
NW Florida
 
Futures Experience: Intermediate
Platform: OX and TOS
Favorite Futures: Futures Options, Stocks
 
opts's Avatar
 
Posts: 234 since Aug 2012
Thanks: 29 given, 107 received

shane: I have been using OX for several years and have no complaints aside from their charts which are very average. Barchart or Ninjatrader (free) is all I need.

Pears:

Take a look here

http://http://www.ccstrade.com/futures/seasonal/

Very important stuff here for seasonal tendencies.

As for the grains: the crop progress report came out today with a bullish bias. However corn (May in particular) settled about 14 cents below the reaction high. The current price is almost at the 50% retracement level. The seasonal tendency for corn this time of year is for prices to be range-bound, pull back towards July, then move up in the summer.

My 2 cents is still range-bound here. I'm giving the grains a few more days to digest this news and see how this snow front will affect wheat prices too. No worries, selling options gives you plenty of time to decide what to do....pun very well intended here.

Reply With Quote
The following user says Thank You to opts for this post:
 
  #483 (permalink)
Trading for Fun
Houston, Texas
 
Futures Experience: Advanced
Platform: Interactive Brokers, OptionsXpress
Broker/Data: Options Express
Favorite Futures: Options on Futures
 
MJ888's Avatar
 
Posts: 165 since Sep 2012
Thanks: 37 given, 123 received



ron99 View Post
I'm surprised they gave you the lower rate as a new customer. I guess I should have asked sooner when I moved there!

Yeah, I am delighted too and didn't think OX would go that low. But I did start the conversation by telling them that I only pay a flat rate of $2.32 at IB and that is also inclusive of all fees and paying $12.99 plus fees is unjustified no matter how great the services were at OX. They put me on hold for a few minutes and then came back with $3.99 no strings attached. I am glad I asked.

Reply With Quote
The following user says Thank You to MJ888 for this post:
 
  #484 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,651 since Jul 2011
Thanks: 770 given, 4,579 received
Forum Reputation: Legendary


opts View Post
shane: I have been using OX for several years and have no complaints aside from their charts which are very average. Barchart or Ninjatrader (free) is all I need.

Pears:

Take a look here

http://http://www.ccstrade.com/futures/seasonal/

Very important stuff here for seasonal tendencies.

As for the grains: the crop progress report came out today with a bullish bias. However corn (May in particular) settled about 14 cents below the reaction high. The current price is almost at the 50% retracement level. The seasonal tendency for corn this time of year is for prices to be range-bound, pull back towards July, then move up in the summer.

My 2 cents is still range-bound here. I'm giving the grains a few more days to digest this news and see how this snow front will affect wheat prices too. No worries, selling options gives you plenty of time to decide what to do....pun very well intended here.

In 2012 Mar corn was down 40 cents on the bearish report on Jan 12th. The next day it was down 12 more cents. From that point to the end of Feb it was up 54 cents even though there was a bearish report.

In 2011 Mar corn was up 24 cents on a bullish report. From 1/12 to 2/25 Mar corn was up 81 more cents.

Corn OI gained 80-90,000 in those 6 weeks. Hedging and speculating for the new year.

With the bullish report, I can easily see corn running higher for 6 weeks.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
  #485 (permalink)
Trading for Fun
Houston, Texas
 
Futures Experience: Advanced
Platform: Interactive Brokers, OptionsXpress
Broker/Data: Options Express
Favorite Futures: Options on Futures
 
MJ888's Avatar
 
Posts: 165 since Sep 2012
Thanks: 37 given, 123 received


opts View Post
As for the grains: the crop progress report came out today with a bullish bias. However corn (May in particular) settled about 14 cents below the reaction high. The current price is almost at the 50% retracement level. The seasonal tendency for corn this time of year is for prices to be range-bound, pull back towards July, then move up in the summer.

My 2 cents is still range-bound here. I'm giving the grains a few more days to digest this news and see how this snow front will affect wheat prices too. No worries, selling options gives you plenty of time to decide what to do....pun very well intended here.

I am considering selling some May corn calls, particularly strikes above 850, even 900

Reply With Quote
The following 3 users say Thank You to MJ888 for this post:
 
  #486 (permalink)
Trading for Fun
Huntsville AL/USA
 
Futures Experience: Intermediate
Platform: optionsXpress
Favorite Futures: Options on Futures
 
Posts: 54 since May 2012
Thanks: 80 given, 26 received


MJ888 View Post
Yeah, I am delighted too and didn't think OX would go that low. But I did start the conversation by telling them that I only pay a flat rate of $2.32 at IB and that is also inclusive of all fees and paying $12.99 plus fees is unjustified no matter how great the services were at OX. They put me on hold for a few minutes and then came back with $3.99 no strings attached. I am glad I asked.

That is great. I called and negotiated with them about a year ago. The gave me $6.99 per contract. I really like OX. I have two accounts with them and their customer service is top notch.

I am having one problem right now with the trade calculator. It works for a market order but if I type in a limit price it won't work. I never place market orders.

Reply With Quote
 
  #487 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,651 since Jul 2011
Thanks: 770 given, 4,579 received
Forum Reputation: Legendary


Raven View Post
That is great. I called and negotiated with them about a year ago. The gave me $6.99 per contract. I really like OX. I have two accounts with them and their customer service is top notch.

I am having one problem right now with the trade calculator. It works for a market order but if I type in a limit price it won't work. I never place market orders.

I leave the market price line checked and click calculate. If you then hit the Trade Now button it will bring up the correct futures options order form. If you click on the bid price, if that is the price you want to sell the option, it puts that price in the limit price box.

I suspect the limit price on trade calc are for something other than futures options.

Reply With Quote
 
  #488 (permalink)
Elite Member
Milton Keynes UK
 
Futures Experience: Intermediate
Platform: Investor/RT, Sierra Chart
Favorite Futures: Futures Options, CL
 
Posts: 156 since Jun 2009
Thanks: 74 given, 115 received

Long Term Oil

I have said previously that I was bullish on Oil and twice bought calls which made a couple of dollars each.
The reason for my bullish mode can be seen from the chart below.

There was massive buying in October when consolidating at the 90-95 range. These buyers mainly held despite the crash down to 85's where they rebought or new buyers entered.

The subsequent pushes to 90 have been met with selling creating a distribution effect. The resolution of the Fiscal Cliff has rocketed prices as high as 94. At the same time the selling has continued and the volume delta has now touched the blue line. From a delta analysis point of view this says that the buyers from the lows at 85 have mainly covered their longs, or an inventory grab has occured.

This means we need new buyers to come in (or sellers to buy to cover) for prices to move on up. There aren't many sellers holding shorts as much of the selling was long covering. What there still is though, is 40000 buyers holding from the 90-95's area, so they are basically at break even at the moment.

It maybe they are long term bulls waiting for the 100's. I would expect some further consolidation in this range and it will be interesting to see if the delta bleeds off further or a seaonal dip down is bought into.

On a personal note I missed the latest advance due to fiscal cliff worries so I would love to see a pull back to 90-91 area, resistance becoming support, as an area to buy calls again or at least sell puts.

Thoughts anyone?
Brit

Attached Thumbnails
Selling Options on Futures?-oil-big-picture.jpg  

Last edited by britkid99; January 13th, 2013 at 10:59 AM. Reason: spelling
Reply With Quote
 
  #489 (permalink)
Elite Member
Brisbane , Australia
 
Futures Experience: Intermediate
Platform: NT, OX
Favorite Futures: Futures
 
Posts: 47 since Sep 2009
Thanks: 27 given, 10 received

[/ATTACH]
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).



Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Hey Brit, pretty much agree with your analysis..... I'll be looking for a close above 95 with targets of 100 to get long. There were some decent pushes from 92.50 last week.

Enjoying everyone's thinking in this thread. I am fairly new to options, but am impressed with what I have researched so far.

Cheers

Crez

Reply With Quote
The following user says Thank You to crez for this post:
 
  #490 (permalink)
Trading Apprentice
Richmond, VA/USA
 
Futures Experience: None
Platform: NinjaTrader
Favorite Futures: stocks
 
Posts: 29 since Nov 2012
Thanks: 3 given, 8 received

How much income from selling option contracts?


Hey Ron99 and anyone else who is doing this full time,

I was wondering how big of a bank roll one would likely need to be able to do this full time and make $100,000/yr.

Also wondering if anyone thinks a hedge fund could could be started based on selling OTM options as is discussed here?

Thanks!

Reply With Quote

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)

July Journal Challenge w/$1100 in prizes from TopstepTrader

July
 

An Afternoon with FIO member Softsoap

Elite only

Battlestations: Show us your trading desks and win $750 in prizes

August
 

Extended Ask Me Anything w/Brett Steenbarger

Elite only

Prototyping Python Strategies (part 3) w/Ran Aroussi

Elite only

Brannigan Barrett w/Axia Futures

Elite only

Introduction to Phillip Capital futures brokerage services

Aug TBD

How Monte Carlo Analysis Can Help Your Trading w/Kevin Davey

Elite only
     

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 02:34 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 2017-07-25 in 0.07 seconds with 19 queries on phoenix via your IP 54.166.136.90