Selling Options on Futures? (Page 558) - Options on Futures | futures.io
futures.io futures trading
 

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures


Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:569,803 / 5,734
Last Reply:23 Hours Ago (01:01 AM) Attachments:642

Welcome to futures.io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike
     

Reply
 642  
 
Thread Tools Search this Thread

Selling Options on Futures?

Old August 31st, 2016, 12:18 PM   #5571 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,329 since Jul 2011
Thanks: 634 given, 3,909 received


myrrdin View Post
I would assume that this strategy would end up in a margin call long before a 20 % move down of the ES. (I assume that 3X excess factor means that 25 % of the margin are used in the beginning.)

Do I miss anything ?

Best regards, Myrrdin

3X means that if the IM is $500 then $1,500 is held. So IM would be 33% of money held.

Only on 8/24/15 does 3 delta 3X hit margin call. The other two times it hit 20+% drawdown it did not hit margin call. Oct 2014 it hit 22.7% drawdown but percent of account used for margin was at 84.5%. Jan 2016 it hit 26.3% drawdown but percent of account used for margin was at 93.7%.

Attached is spreadsheet with all of the research.

Attached Files
Register to download File Type: xlsx Option ES Study 10x.xlsx (1.53 MB, 24 views)
Reply With Quote
     
The following 4 users say Thank You to ron99 for this post:
     

Old August 31st, 2016, 06:56 PM   #5572 (permalink)
Trading Apprentice
westhills california US
 
Futures Experience: Beginner
Platform: TOS
Favorite Futures: FOREX,STOCKS,FUTURES
 
Posts: 28 since May 2015
Thanks: 26 given, 5 received

Just wondering if you guys have looked at one short-one long ES not so far OTM?
During periods of low volatility or times when market is not going anywhere
example. current ES is at 2160.00

Sell put at strike 2000
buy put at strike 1990

Use IM 1X1
DTE 90-120
Sell when 50% profit is hit

Reply With Quote
     

Old September 1st, 2016, 12:43 AM   #5573 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 213 since Jan 2015
Thanks: 13 given, 172 received


Rajab,

Yes I tried that and it won't work.

/rsm005/

Reply With Quote
     
The following user says Thank You to rsm005 for this post:
     

Old September 1st, 2016, 06:35 AM   #5574 (permalink)
Elite Member
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, Vantage, Trade Navigator
Broker/Data: DeCarley, RJO
Favorite Futures: Commodities
 
Posts: 684 since Nov 2014
Thanks: 1,033 given, 550 received


rajab View Post
Just wondering if you guys have looked at one short-one long ES not so far OTM?
During periods of low volatility or times when market is not going anywhere
example. current ES is at 2160.00

Sell put at strike 2000
buy put at strike 1990

Use IM 1X1
DTE 90-120
Sell when 50% profit is hit

I am currently selling naked ES puts between 2000 and 2050, 90 - 120 days out. During periods of low volatility I prefer selling puts with higher Delta, as they seem to suffer less, if a sudden rise of volatility occurs.

Best regards, Myrrdin

Reply With Quote
     
The following user says Thank You to myrrdin for this post:
     

Old September 1st, 2016, 02:47 PM   #5575 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 213 since Jan 2015
Thanks: 13 given, 172 received

Futures Edge on FIO
@ron99

Just a quick question on the 1:2 put spread are you selling the short at a 5 delta or a 6 delta?

/rsm005/

Reply With Quote
     

Old September 1st, 2016, 03:38 PM   #5576 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,329 since Jul 2011
Thanks: 634 given, 3,909 received


rsm005 View Post
@ron99

Just a quick question on the 1:2 put spread are you selling the short at a 5 delta or a 6 delta?

/rsm005/

Right now 5 delta. I want to stay 20% OTM because 19% was the largest drop in a 90 day period since 2008. 5 delta about about there right now.

Here is what Sep ES has done from Sep 1 to the Thursday before the third Friday (option expiration) the last 10 years. Up every year except 2008. DD is draw down.

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


After that it has dropped 7 of the last 8 years to Oct 3rd. (Net Ch is profit if short futures)

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


The Fed meeting this year is 9/21 so it is the week after option expiration.

Reply With Quote
     
The following 2 users say Thank You to ron99 for this post:
     

Old September 1st, 2016, 03:42 PM   #5577 (permalink)
Elite Member
vancouver BC/Canada
 
Futures Experience: Beginner
Platform: Zaner360, OX
Broker/Data: DeCaley
Favorite Futures: options
 
Posts: 213 since Jan 2015
Thanks: 13 given, 172 received

Ok. I was going with 6 and 1.5 but will probably change it around. I have a few positions open and most are in the black but not by much, 30% for the one that's been open for 31 days and the others would just break even. Next round will change things but I probably won't make any new trades until after the election. I don't want any real exposure in Nov.

Thanks,
/rsm005/

Reply With Quote
     

Old September 1st, 2016, 04:00 PM   #5578 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,329 since Jul 2011
Thanks: 634 given, 3,909 received


rsm005 View Post
Ok. I was going with 6 and 1.5 but will probably change it around. I have a few positions open and most are in the black but not by much, 30% for the one that's been open for 31 days and the others would just break even. Next round will change things but I probably won't make any new trades until after the election. I don't want any real exposure in Nov.

Thanks,
/rsm005/

Everybody already knows who is winning the election so I don't think that will matter to markets.

Reply With Quote
     

Old September 1st, 2016, 04:03 PM   #5579 (permalink)
Trading for Fun
Riga Latvia
 
Futures Experience: Intermediate
Platform: Zaner 360
Favorite Futures: commodyties
 
Posts: 83 since Jan 2013
Thanks: 219 given, 59 received


ron99 View Post
Everybody already knows who is winning the election so I don't think that will matter to markets.

Who?

Reply With Quote
     

Old September 1st, 2016, 04:11 PM   #5580 (permalink)
Market Wizard
OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,329 since Jul 2011
Thanks: 634 given, 3,909 received



uuu1965 View Post
Who?

Here is link to best US election forecaster
http://projects.fivethirtyeight.com/2016-election-forecast/?ex_cid=rrpromo

Reply With Quote
     
The following 3 users say Thank You to ron99 for this post:
     

Reply



futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > Options on Futures > Selling Options on Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Trading Technologies: ADL hands-on

Dec 13

Normal webinar schedule resumes after the holidays

January

Ernie Chan: Risk Management

Elite only

Dedicated Trading Servers: Advantages/Disadvantages w/sam028

Elite only

An Afternoon with FIO member Massive I

Elite only

Leo Murphy: TBA

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 12:00 PM
Recommend futures, options Broker? sam1197 Brokers and Data Feeds 17 March 27th, 2013 01:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 05:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 01:40 PM
Zen-Fire Futures options tici88 Brokers and Data Feeds 1 July 30th, 2011 10:16 AM


All times are GMT -4. The time now is 12:56 AM.

Copyright © 2016 by 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 2016-12-09 in 0.14 seconds with 20 queries on phoenix via your IP 54.197.90.95