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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,534 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old September 9th, 2015, 01:38 PM   #5001 (permalink)
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ron99 View Post
Number of 2% moves in S&P in the past 13 sessions: seven.

Number of 2% moves in prior 167 sessions: one.

Along the same lines as what @ron99 posred. The swings in prices are way out of normal ranges

The S&P 500*Hasn't Seen This Many 'All or Nothing Days' Since 2011 - Bloomberg Business

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Old September 9th, 2015, 07:08 PM   #5002 (permalink)
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ron99 View Post
Number of 2% moves in S&P in the past 13 sessions: seven.

Number of 2% moves in prior 167 sessions: one.


grausch View Post
A similar thing happened in 2007 - I measured moves in terms of ATR, i.e. 1ATR, 2ATR, etc. Before the crisis began moves of greater than 2ATR were highly unlikely. Once it got into full swing moves greater than 2ATR were much more common.

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Old September 9th, 2015, 08:11 PM   #5003 (permalink)
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Chubbly View Post
That other service also had a bad May 2010

index etf credit spread iron condor option advisory options trading system service using puts and calls, spreads and condors trader strategies

What I don't like is that they keep say "we were forced to roll our spreads at no cost" when in reality When you roll a position, you’re buying to close an existing position and selling to open a new one.

Someone who is naive would think you could just roll forever to get out of bad positions

Well you can, that's if you got enough margin, but if you had enough margin then your returns will be too low.

Rolling is a suckers game, works until your margin hits your pain point and you get crap premium for it.

Good to see people are buying vix or puts to hedge the downside, spreads are a lot smarter.

Sent from my SM-N9005 using Tapatalk

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Old September 15th, 2015, 01:23 PM   #5004 (permalink)
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Well, rolling might be a suckers game - many people think the very same about short selling options in general.

If my account would be divided in 2 accounts, the first one applying maginx5, the other following marginx3 -- but only AFTER vol spikes have turned up ---- what would the outcome be for the aggregated accounts?

So our standard rules to the second account just selling at times of high volatility only, but with first account regularily selling less contracts (plus rolling allowed)?

Thanks

Forex37



P.S. I love to have contributed post 5005 - lovely number

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Old September 16th, 2015, 01:18 PM   #5005 (permalink)
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Futures Edge on FIO
After all the discussion surrounding Aug 24th and 25th I lost track of who made the trade, but whoever sold October ES 1400 puts at $4.00 or more on the 24th (I think I'm remembering correctly) -- jolly good show!

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Old September 16th, 2015, 01:49 PM   #5006 (permalink)
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CafeGrande View Post
After all the discussion surrounding Aug 24th and 25th I lost track of who made the trade, but whoever sold October ES 1400 puts at $4.00 or more on the 24th (I think I'm remembering correctly) -- jolly good show!

That was @SMCJB.

https://futures.io/options-cfd-trading/12309-selling-options-futures-482.html#post515129

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Old September 16th, 2015, 02:20 PM   #5007 (permalink)
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On 8/28 I sold ESz5p1400s for 8.50 along with buying ESz5p1100s for 2.45 and buying 2 for each short ESv5p800 for 0.20. Got out today at 3.90 and 0.70. Keeping 800s. So that is a net of 2.65 for 19 days held.

My preliminary research is showing that there are better ways to do covered spreads than the trade above. Buying 2 options one month in front of short month looks promising. Still working on the research.

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Old September 17th, 2015, 06:29 PM   #5008 (permalink)
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A favor please.


ron99 View Post
On 8/28 I sold ESz5p1400s for 8.50 along with buying ESz5p1100s for 2.45 and buying 2 for each short ESv5p800 for 0.20. Got out today at 3.90 and 0.70. Keeping 800s. So that is a net of 2.65 for 19 days held.

My preliminary research is showing that there are better ways to do covered spreads than the trade above. Buying 2 options one month in front of short month looks promising. Still working on the research.

Hi,

If not to much of a bother would you please tell me what you have as IM with your
broker for a 1785 ES Put expiring 9/25?

I am with IB and called them today to question their IM.
They show it at $5502.01 with maintenance at $4401.61.

When speaking with the margin department they tried to insist it
was 2 times span at most.

Thanks,
Sam

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Old September 17th, 2015, 09:30 PM   #5009 (permalink)
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LordV View Post
Hi,

If not to much of a bother would you please tell me what you have as IM with your
broker for a 1785 ES Put expiring 9/25?

Thanks,
Sam

GAIN Capital has the IM at $1496. You will probably need to add the value of the option to get an apples v. apples comparison.

IB, as mentioned elsewhere in this thread, is hit-and-miss as far as being a good place to sell options. Most people say for ES they really ratchet up the margins. I trade a number of physical commodity options through them and they're fine for certain products ... maybe exchange minimum plus 10% or so.


Last edited by CafeGrande; September 17th, 2015 at 09:40 PM.
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Old September 18th, 2015, 02:16 AM   #5010 (permalink)
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ron99 View Post
On 8/28 I sold ESz5p1400s for 8.50 along with buying ESz5p1100s for 2.45 and buying 2 for each short ESv5p800 for 0.20. Got out today at 3.90 and 0.70. Keeping 800s. So that is a net of 2.65 for 19 days held.

My preliminary research is showing that there are better ways to do covered spreads than the trade above. Buying 2 options one month in front of short month looks promising. Still working on the research.

Ron,

Do you mind sharing your alternative covered spread model? Also, why did you pick these specific strikes?

Thanks,
/rsm005/

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