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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:568,237 / 5,727
Last Reply:December 2nd, 2016 (12:40 PM) Attachments:642

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Selling Options on Futures?

Old January 26th, 2016, 06:52 AM   #5251 (permalink)
Elite Member
Steubenville Ohio
 
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jokertrader View Post
How do i make it work for a diagonal

I can get lets say CLJ6 put spread to work but if i try

CLJ6 33 put -1
CLK6 31 put +1
It doesnt work

For the J6, futures and options month are the same
I do the same for K6 - am i doing something wrong?

any thanks to Dudetooth, Ron for this.. finally i have a backtesting solution (should have joined u guys a while ago.. oh well never too late)

Did you mark both sides of that spread in the S1 column with the same number and select both rows before clicking Track Historic (that is how the spreadsheet knows you want it to be treated as a spread)?

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Old January 26th, 2016, 04:22 PM   #5252 (permalink)
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rutherford NJ
 
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I dont think it worked

Have it exactly as you have it - I dont think its giving me what i want
What am i doing wrong?
thanks in advance

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Old January 26th, 2016, 04:32 PM   #5253 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
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Favorite Futures: Options on Futures
 
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jokertrader View Post
Have it exactly as you have it - I dont think its giving me what i want
What am i doing wrong?
thanks in advance

The may 31 put had zero open interest on 20151209. So you can't get margin for that option or when it is included in a spread. Switch to a 30 put.

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Old January 28th, 2016, 05:02 PM   #5255 (permalink)
World'sWorstTrader
Knoxville Tennessee USA
 
Futures Experience: Intermediate
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Favorite Futures: ES, NQ, CL, /6E futures options.
 
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Futures Edge on FIO



Whew....................I'm relieved. I wasn't sure what would happen.

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Old January 30th, 2016, 12:40 PM   #5256 (permalink)
Trading Apprentice
New York
 
Futures Experience: Beginner
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Hi All,
Just I just registered for this forum specifically to learn more about writing options. Name is Steve, I'm 29, and a novice investor when it comes to options and commodities. I have been building up a modest retirement portfolio of stock equities since 2007.

I am very intrigued by the idea of diversifying and selling premium on futures options. I'm Currently reading Cordier's Complete Guide to Selling Options and came here to watch and learn how you experienced and active traders think and make decisions.

Looking forward to getting getting started and getting to know you fine folks and learning from your experiences as well

Does anyone have any recommendations as far as a Paper Trading platform or tools to track options trade positions?

Thank you all and happy weekend!


-Steve

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Old January 30th, 2016, 02:00 PM   #5257 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
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Favorite Futures: Options on Futures
 
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waterbug700 View Post
Hi All,
Just I just registered for this forum specifically to learn more about writing options. Name is Steve, I'm 29, and a novice investor when it comes to options and commodities. I have been building up a modest retirement portfolio of stock equities since 2007.

I am very intrigued by the idea of diversifying and selling premium on futures options. I'm Currently reading Cordier's Complete Guide to Selling Options and came here to watch and learn how you experienced and active traders think and make decisions.

Looking forward to getting getting started and getting to know you fine folks and learning from your experiences as well

Does anyone have any recommendations as far as a Paper Trading platform or tools to track options trade positions?

Thank you all and happy weekend!


-Steve

Welcome Steve.

Starting with this post
https://futures.io/options-futures/12309-selling-options-futures-515.html#post545480

I explain how you can historically track options on futures using Dudetooth's excellent Excel spreadsheet.

I made my own Excel sheet to track currently held options in my accounts. It isn't too hard to do.

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Old January 31st, 2016, 09:18 AM   #5258 (permalink)
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Long Island, NY
 
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Warren534 View Post
If you use TOS, or watch tastytrade, high implied volatility would be based on the Implied Volatility Rank or Percentile being at a very high level, say over 75 or 80. This compares Implied Volatility level for an underlying against itself, say over the last 12 months, or some other period.

So to follow up on this, on Thursday 1/28 with CLJ6 at 34.75, implied volatility at 68%, with an IV Rank at 94%, I wrote the following option strangles:

34.5 put and 35 call for 5.93 (essentially a straddle)
29.5 put and 43 call for 1.89
26 put and 46 call for .93

My expectation is that CL will move into a trading range for the next few weeks. If so, implied volatility will decline sharply, IV Rank will get back down towards 50%. Also, time will pass, so both will result in substantial decline in option premiums. With just the choppiness on Friday 1/29, implied volatility fell to 62%, IV Rank declined to 82%, and these positions are already showing good profits.

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Old January 31st, 2016, 12:02 PM   #5259 (permalink)
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LOS ANGELES, UNITED STATES
 
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Warren534 View Post
So to follow up on this, on Thursday 1/28 with CLJ6 at 34.75, implied volatility at 68%, with an IV Rank at 94%, I wrote the following option strangles:

34.5 put and 35 call for 5.93 (essentially a straddle)
29.5 put and 43 call for 1.89
26 put and 46 call for .93

My expectation is that CL will move into a trading range for the next few weeks. If so, implied volatility will decline sharply, IV Rank will get back down towards 50%. Also, time will pass, so both will result in substantial decline in option premiums. With just the choppiness on Friday 1/29, implied volatility fell to 62%, IV Rank declined to 82%, and these positions are already showing good profits.

Don't see any value in this hindsight trade, should post trades as you enter them, not talk about them after they are in profit.

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Old January 31st, 2016, 06:13 PM   #5260 (permalink)
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jcrother View Post
Don't see any value in this hindsight trade, should post trades as you enter them, not talk about them after they are in profit.

This is not a trade journal thread where people post trades as they do them.

Really, your first post ever is to criticize another poster?

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