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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,836 / 5,734
Last Reply:Yesterday (01:01 AM) Attachments:642

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Selling Options on Futures?

Old March 28th, 2016, 02:20 AM   #5361 (permalink)
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rsm005 View Post
Thanks Ron,

I'm not sure if it's something I'm doing but the pivot table seems very fragile. I run the spreadsheet and there's data under historical but I see this in the pivot table...regardless of date or prices..


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Am I missing something?

/rsm005/

I figured it out. There seems to be a blank column in the HistData table that I didn't notice. Gets recreated every time the tracker is run. Specifically the Column is AI with a value of "1".

Thanks,
/rsm005/

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Old March 28th, 2016, 08:46 AM   #5362 (permalink)
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rsm005 View Post
I figured it out. There seems to be a blank column in the HistData table that I didn't notice. Gets recreated every time the tracker is run. Specifically the Column is AI with a value of "1".

Thanks,
/rsm005/

Yes put a number 1 in cell, column AI row 1. Then on HistPivot sheet right click on any number and click on Refresh

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Old March 28th, 2016, 05:02 PM   #5363 (permalink)
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Hi all, new here.

I've been trading Forex for a while and have started Selling Options on Forex with brokers FXDD / AVA Options and Saxo. I want to look at Selling Options on Commodities as well. FXDD and AVA only do Gold & Silver, Saxo do more commodities but is there anyone else that offers the facility to sell options on Commodities that let UK residents open accounts? Thanks for your help.

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Old March 29th, 2016, 07:29 AM   #5364 (permalink)
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Ashur View Post
Hi all, new here.

I've been trading Forex for a while and have started Selling Options on Forex with brokers FXDD / AVA Options and Saxo. I want to look at Selling Options on Commodities as well. FXDD and AVA only do Gold & Silver, Saxo do more commodities but is there anyone else that offers the facility to sell options on Commodities that let UK residents open accounts? Thanks for your help.

There is a lot of information on brokers on this site. You might want to have a more detailed look in this thread as well as in the forum "brokers and data feeds".

I am very happy selling options with DeCarley Trading. Excellent Service. I am European myself, and, thus, assume they let UK residents open accounts. But you have to check.

Best regards, Myrrdin

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Old March 29th, 2016, 12:30 PM   #5365 (permalink)
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Ron, if he wants to put that he is from the USA, Kazakhstan, or Mongolia that's his biz. If someone adds good content, asks the right questions and polite, why would any one care where he/she is from?

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Old March 31st, 2016, 10:16 PM   #5366 (permalink)
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Hi @ron99, I was going back to your spreadsheet you posted here:


ron99 View Post
Attached is a spreadsheet with all of the raw data including Drawdowns.

I am now using a short with a 6.00 delta and two longs with 1.50 deltas each. Slightly different than this example.

If you exit a few times at 30-40% loss then you won't have much money left. Probably less than you started with.

I understand the first table. I was wondering about the second table:

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How did you pick your long and shorts in this table? Looking back these werent short 6 (or 5) delta with 2 long 1.5 delta.

I also wanted to confirm this strategy to test it over the markets the past few months:

On 12/23/15 I looked at these:
Short 1x ESJ6 P1600 delta 5.21
Long 2x ESJ6 P1375 delta 1.58

It would have hit a margin call on 1/20/2016 with 40 percent draw down. Did I do this right? ALso getting out at 30 days would have been a big loss.

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Thanks for your help in advance.

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Old March 31st, 2016, 11:26 PM   #5367 (permalink)
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Mo111 View Post
Hi @ron99, I was going back to your spreadsheet you posted here:



I understand the first table. I was wondering about the second table:

Attachment 205176

How did you pick your long and shorts in this table? Looking back these werent short 6 (or 5) delta with 2 long 1.5 delta.

I also wanted to confirm this strategy to test it over the markets the past few months:

On 12/23/15 I looked at these:
Short 1x ESJ6 P1600 delta 5.21
Long 2x ESJ6 P1375 delta 1.58

It would have hit a margin call on 1/20/2016 with 40 percent draw down. Did I do this right? ALso getting out at 30 days would have been a big loss.

Attachment 205182



Thanks for your help in advance.

No...you're correct. This one of the big challenges with this method of trading and this spread. You will be protected from a flash crash but not a slow, steady grind down.

/rsm005/

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Old April 1st, 2016, 03:18 PM   #5368 (permalink)
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Mo111 View Post
Hi @ron99, I was going back to your spreadsheet you posted here:



I understand the first table. I was wondering about the second table:

How did you pick your long and shorts in this table? Looking back these werent short 6 (or 5) delta with 2 long 1.5 delta.

I also wanted to confirm this strategy to test it over the markets the past few months:

On 12/23/15 I looked at these:
Short 1x ESJ6 P1600 delta 5.21
Long 2x ESJ6 P1375 delta 1.58

It would have hit a margin call on 1/20/2016 with 40 percent draw down. Did I do this right? ALso getting out at 30 days would have been a big loss.

Thanks for your help in advance.

The table with the white background is naked 3.00 delta options.

What's crazy is that if you sold a 1750 put naked it would have never went on margin call (max 88% with 30% drawdown). But you would have had no protection from a flash crash.

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Old April 2nd, 2016, 04:46 PM   #5369 (permalink)
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@Mo111

After running simulation after simulation for months there is only one solution I've found to survive the type of downward movement we saw in the beginning of the year while still using the spread being used by Ron, reduce the position size.


I've been keeping between 6x and 10x extra capital in my account. This reduction can allow me to easily ride out what we saw in both August and January. Now the drawback is that you obviously will not have as much in the way of gains but that's for you to decide.

/rsm005/

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Old April 2nd, 2016, 05:23 PM   #5370 (permalink)
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It is obvious that you have to take some measure(s) to ride out severe downward movements. Unfortunately These downward movements appear in many different ways.

There are many different ways to solve this problem. It is my approach to diversify my Portfolio (see own thread), and to get out early. ( I often get out of short option trades, when the value of the option has doubled. Or earlier.)

Best regards, Myrrdin

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