Dark Theme
Light Theme
Trading Articles Article Categories Article Tools
Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to
register in order to view the content of the threads and start contributing to our community.
It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Selling Options on Futures?
Updated July 28, 2023
Top Posters
looks_one
ron99
with 2,221 posts (4,489 thanks)
looks_two
SMCJB
with 346 posts (733 thanks)
looks_3
kevinkdog
with 341 posts (400 thanks)
looks_4
myrrdin
with 288 posts (408 thanks)
Best Posters
looks_one
SMCJB
with 2.1 thanks per post
looks_two
ron99
with 2 thanks per post
looks_3
myrrdin
with 1.4 thanks per post
looks_4
kevinkdog
with 1.2 thanks per post
trending_up
1,997,348 views
thumb_up
9,259 thanks given
group
458 followers
forum
7,370 posts
attach_file
794 attachments
Selling Options on Futures?
September 5th, 2017, 12:24 AM
Linz Austria
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,688
Thanks Received: 2,651
Calamari88
Do seasonal tendencies apply to the T-bond, 10 year T-note and 5 year T-note?
Can you help answer these questions
Best Threads (Most Thanked)
September 5th, 2017, 06:12 AM
New York, United States
Posts: 7 since Aug 2017
Thanks Given: 0
Thanks Received: 1
Selling option on furtures is easy to understand but difficult to master.
September 5th, 2017, 12:46 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
LordV
Quoting
It’s also important to remember that the real value in this strategy is only during times of extreme overvaluation in the stock market. Most of the time “tail hedging” in this way does not add any real benefit and can actually be a major hindrance to overall performance. That said, the stock market currently meets Spitznagel’s uppermost threshold for hedging
September 5th, 2017, 02:13 PM
toronto/ontario/canada
Experience: Intermediate
Platform: MC,TOS
Trading: currency,treasury
Posts: 31 since Jan 2012
Thanks Given: 1
Thanks Received: 4
I checked it on -200-300 points drop with `30%vol it works well like a hedge,but on -50points drop with with less volatility doesn't make sense.
September 5th, 2017, 03:04 PM
Burlington, Vermont
Experience: Beginner
Platform: StockTwits
Broker: Robinhood
Trading: ES, GC, ZB
Posts: 708 since Jun 2015
Thanks Given: 879
Thanks Received: 781
ron99 can you look this over to see if I'm understanding your strategy correctly?screen shot shows a position in SPY I tried to set up in emulation of your strategy, which I understand is a put ratio backspread with the short strike at -20% of current price and the long strike at whatever gives you 2.00+/- Delta on the trade. If that is correct I'm showing a net credit collected of only 0.25 which I assume I hold to expiration to collect 100% of the premium collected. I'm confused about the amount of cash coverage you suggest, I believe it is 6x the IM, which in my case is Max Loss on the trade as this is an IRA . So in this case ML is $2675 * 6 = $16,050 per tranche?
September 5th, 2017, 04:01 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
nathanologist
ron99 can you look this over to see if I'm understanding your strategy correctly?
the attached
screen shot shows a position in SPY I tried to set up in emulation of your strategy, which I understand is a put ratio backspread with the short
strike at -20% of current price and the long strike at whatever gives you 2.00+/-
Delta on the trade. If that is correct I'm showing a net credit collected of only 0.25 which I assume I hold to expiration to collect 100% of the
premium collected. I'm confused about the amount of cash coverage you suggest, I believe it is 6x the IM, which in my case is Max Loss on the trade as this is an
IRA . So in this case ML is $2675 * 6 = $16,050 per tranche?
Forgive me but it doesn't seem like a great ROI especially if held for the full 90+/- days. I must be misunderstanding something.
September 5th, 2017, 04:19 PM
Burlington, Vermont
Experience: Beginner
Platform: StockTwits
Broker: Robinhood
Trading: ES, GC, ZB
Posts: 708 since Jun 2015
Thanks Given: 879
Thanks Received: 781
ron99
We have never tested it on SPY, only on options on ES futures.
September 5th, 2017, 04:53 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
nathanologist
OK, regardless, do I have the strategy basics correct?
premium .delta and buying 3 puts at 1 delta and using 4xIM.
September 8th, 2017, 01:09 AM
vancouver BC/Canada
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
Thanks Given: 13
Thanks Received: 205
ron99
Interesting article. Thanks
Analysis of Mark Spitznagel Tail Hedging, Part 2 | greyenlightenment.com
September 10th, 2017, 01:54 PM
Henderson, NV, USA
Posts: 63 since Feb 2015
Thanks Given: 91
Thanks Received: 33
myrrdin
Yes, there are seasonal tendencies for the financial futures. But according to my experience, they are less reliable than the seasonals for other commodities, eg. grains & beans, coffee, or the energies.
Last Updated on July 28, 2023
