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


Selling Options on Futures?
Updated: Views / Replies:694,225 / 6,327
Created: by ron99 Attachments:735

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 – 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 don’t 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
 735  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #5361 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 240 since Jan 2015
Thanks: 13 given, 191 received


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..


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




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/

Reply With Quote
 
  #5362 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,720 received
Forum Reputation: Legendary


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

Reply With Quote
 
  #5363 (permalink)
Trading Apprentice
Swansea UK
 
Futures Experience: Beginner
Platform: MT4
Favorite Futures: Currency
 
Posts: 1 since Mar 2016
Thanks: 0 given, 0 received


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.

Reply With Quote
 
  #5364 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 1,026 since Nov 2014
Thanks: 1,416 given, 1,180 received
Forum Reputation: Legendary


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

Reply With Quote
 
  #5365 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,097 since Jun 2009
Thanks: 29,192 given, 82,535 received


mattz View Post
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?

Matt Z
Optimus Futures

There is a risk of loss in futures trading. Past performance is not indicative of future results.

We make it clear that an accurate location is a requirement. Purposely posting false information will result in a permanent ban out of disrespect for our forum.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

Reply With Quote
The following 4 users say Thank You to Big Mike for this post:
 
  #5366 (permalink)
Trading Apprentice
Detroit MI/USA
 
Futures Experience: Beginner
Platform: OEC
Favorite Futures: CL,6E,6B,ES
 
Posts: 21 since Jan 2014
Thanks: 12 given, 9 received

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:

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


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.

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




Thanks for your help in advance.

Reply With Quote
 
  #5367 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 240 since Jan 2015
Thanks: 13 given, 191 received


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/

Reply With Quote
 
  #5368 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,700 since Jul 2011
Thanks: 781 given, 4,720 received
Forum Reputation: Legendary


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.

Reply With Quote
 
  #5369 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 240 since Jan 2015
Thanks: 13 given, 191 received

@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/

Reply With Quote
The following 3 users say Thank You to rsm005 for this post:
 
  #5370 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 1,026 since Nov 2014
Thanks: 1,416 given, 1,180 received
Forum Reputation: Legendary


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

Reply With Quote
The following 3 users say Thank You to myrrdin for this post:

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)

FuturesTrader71: TBA

Elite only

Al Brooks: TBA

Elite only

Jigsaw Trading: TBA

Oct 19

RandBots: TBA

Oct 24
     

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 11:25 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 2017-09-22 in 0.09 seconds with 19 queries on phoenix via your IP 107.22.118.242