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Selling Options on Futures?
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Selling Options on Futures?

  #6101 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
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Favorite Futures: Options on Futures
 
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TFOpts View Post
Thanks Ron!

How's this for the roll?
Margin Held + Init Short - Short Buy + Init Roll Short - Init Long > Maintenance Margin(t) + Roll Short(t) - Long(t)
Where,
Init Short = the value of the short option when the position was opened
Short Buy = the value of the original short option at the time it was bought back
Init Roll Short = the initial value of the short after the roll
Init Long = the value of the long option when the position was opened
Roll Short(t) = the value of the short after the roll at time t
Long(t) = the value of the long at time t
I left fees out for simplicity.

Looks good to me.

Have a good weekend!

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  #6102 (permalink)
Elite Member
Germany
 
Futures Experience: Intermediate
Platform: TWS
Favorite Futures: Options on futures
 
Posts: 105 since Jul 2014
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Commissions with Zaner

I opened an account with Zaner / Gain, and to my surprise I am paying $ 25,00 per option sold an bought?
Is that normal?
On IB I am paying 3,50, and even that is quite expensive.

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  #6103 (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
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manuel999 View Post
I opened an account with Zaner / Gain, and to my surprise I am paying $ 25,00 per option sold an bought?
Is that normal?
On IB I am paying 3,50, and even that is quite expensive.

Contact your broker. $25 is the default rate if they haven't set the correct amount.

3.50 a half turn is not "quite expensive".

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  #6104 (permalink)
Silver bullet
Kassel / Germany
 
Futures Experience: None
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PK 1's Avatar
 
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manuel999 View Post
I opened an account with Zaner / Gain, and to my surprise I am paying $ 25,00 per option sold an bought?
Is that normal?
On IB I am paying 3,50, and even that is quite expensive.

$25 sounds a lot to me, I would double check. A good broker can compensate a bigger fee but at some point I wouldn't give it a go. I still do my ES-Puts on IB for 2,82 round turn one ES-Option.
But since a longer while I'm also thinking about opening another account for my ES-Puts due to the margin-thing on IB and really nasty fee(s) they added recently.

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  #6105 (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

Ron,

I just wanted to find out how diversified your positions are. Your gains in /ES seem to have a very low ROI so are you in any other commodities?

/rsm005/

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  #6106 (permalink)
Elite Member
Germany
 
Futures Experience: Intermediate
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ron99 View Post
Contact your broker. $25 is the default rate if they haven't set the correct amount.

3.50 a half turn is not "quite expensive".

I meant it more in relation to other offers.

I am at an introducing broker and currently pay 3,50.
With IB directly it is 2,00.
With the Placetrade brokerage, using the same IB account, it is about 1,50.

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  #6107 (permalink)
Trading Apprentice
New York NY USA
 
Futures Experience: Advanced
Platform: Think Or Swim
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Posts: 15 since Jan 2016
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Ron

Thanks for your contributions to the forum. I really enjoyed reading through it.
I'm also an options premium seller. Some stocks but mainly index options.

Was there a study you did (perhaps I missed it ) on only selling the call side ? At what delta and what's the annual return ??
Thanks

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  #6108 (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


TFOpts View Post
Thanks Ron!

How's this for the roll?
Margin Held + Init Short - Short Buy + Init Roll Short - Init Long > Maintenance Margin(t) + Roll Short(t) - Long(t)
Where,
Init Short = the value of the short option when the position was opened
Short Buy = the value of the original short option at the time it was bought back
Init Roll Short = the initial value of the short after the roll
Init Long = the value of the long option when the position was opened
Roll Short(t) = the value of the short after the roll at time t
Long(t) = the value of the long at time t
I left fees out for simplicity.

How's the algo coming along?

/rsm005/

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  #6109 (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
Ron,

I just wanted to find out how diversified your positions are. Your gains in /ES seem to have a very low ROI so are you in any other commodities?

/rsm005/

I post my other commodity trades in the Diversified Option Selling Portfolio thread. Right now I am using 80% of my account for ES spread trades. 20% for NG strangles (with warm weather coming I may be exiting them). I have also done a few other commodity trades this past winter.

We have been spoiled by higher ROI in the past. I had some money in the past at a mutual fund account. He would have been ecstatic if he was making 1% per month for the year.

I feel it is better to take the low ROI sure thing vs risking my money trying for higher ROI. I have been burned by that in past.

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  #6110 (permalink)
Market Wizard
Linz Austria
 
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ron99 View Post
I post my other commodity trades in the Diversified Option Selling Portfolio thread. Right now I am using 80% of my account for ES spread trades. 20% for NG strangles (with warm weather coming I may be exiting them). I have also done a few other commodity trades this past winter.

We have been spoiled by higher ROI in the past. I had some money in the past at a mutual fund account. He would have been ecstatic if he was making 1% per month for the year.

I feel it is better to take the low ROI sure thing vs risking my money trying for higher ROI. I have been burned by that in past.

I fully agree. When selling options, you have to be satisfied with what you can get. It is my experience that profitability in the long run is better when accepting a moderate ROI.

Best regards, Myrrdin

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