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Selling Options on Futures?
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Selling Options on Futures?

  #6651 (permalink)
Elite Member
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myrrdin View Post
In my opinion it is in principle possible with this amount. You will be able to hold several positions, but of course the number of lots will be limited.

The main question is, if the profit in absolute figures will be high enough to enable you to pay for expenses and to allow for a salary acceptable for you.

Best regards, Myrrdin

Myrrdin,

Thanks for the quick reply. Salary doesn't really matter at the moment, just looking to grow the account and learn at the same time. 1-2k a month would be more than enough.

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  #6652 (permalink)
Market Wizard
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swisstrader321 View Post
You guys think 30k is enough to start selling premium on futures?

Yes. I have traded smaller accounts. Just make sure your have enough cash excess to keep from blowing up the account.

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  #6653 (permalink)
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Broker for Roth or traditional IRA accounts?


Hi everyone,
Which broker do you use to trade Options on Futures for Roth and Traditional IRA?
Does IRA have different margin requirement? (i.e., cash covered).

Thanks in advance!

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  #6654 (permalink)
Market Wizard
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swisstrader321 View Post
Myrrdin,

Thanks for the quick reply. Salary doesn't really matter at the moment, just looking to grow the account and learn at the same time. 1-2k a month would be more than enough.

1 - 2 k per month = 12 - 24 k per year = 40 - 80 % return on investment per year.

For a beginner this is extremely ambitious !

Best regards, Myrrdin

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  #6655 (permalink)
Market Wizard
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Narnar View Post
Hi everyone,
Which broker do you use to trade Options on Futures for Roth and Traditional IRA?
Does IRA have different margin requirement? (i.e., cash covered).

Thanks in advance!

DeCarley (Carley Garner) does that. Same option margin.

Just be extremely careful trading IRAs because if you blow up you can't put money back into it more than yearly IRA limit.

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  #6656 (permalink)
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myrrdin View Post
1 - 2 k per month = 12 - 24 k per year = 40 - 80 % return on investment per year.

For a beginner this is extremely ambitious !

Best regards, Myrrdin

Forgot to mention that I am going to throw 5k into the account every month from my day job...so it will grow on its own. A year from now should be close to 100k. Then I assume it should be possible

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  #6657 (permalink)
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With all the sudden spikes in volatility lately I'd be very careful with using margin at any multiple, the downs get pretty terrifying. The S&P is pointing to another 1% down day tomorrow because of Gary Cohn's resignation. Who knows what the next trigger will be and how far it's willing to go. I'm not saying leave the market but more like, be careful. I've stopped using margin completely and switched to shorter term stock plays and a more risk limited portfolio. I may go back to straight commodities but not sure. For right now though, the political effects on the stock market are freaking me out and as much as I like and have had success and failures with Ron's method I think I need to step back for a bit and see what shakes out.

/rsm005/

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  #6658 (permalink)
Market Wizard
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rsm005 View Post
With all the sudden spikes in volatility lately I'd be very careful with using margin at any multiple, the downs get pretty terrifying. The S&P is pointing to another 1% down day tomorrow because of Gary Cohn's resignation. Who knows what the next trigger will be and how far it's willing to go. I'm not saying leave the market but more like, be careful. I've stopped using margin completely and switched to shorter term stock plays and a more risk limited portfolio. I may go back to straight commodities but not sure. For right now though, the political effects on the stock market are freaking me out and as much as I like and have had success and failures with Ron's method I think I need to step back for a bit and see what shakes out.

/rsm005/

In these days diversification helps me a lot to keep the drawdowns small. Eg. in recent weeks meat markets allowed for a nice performance for call sellers, Natural Gas for bear spread traders, CC for outright traders.

I like diversifying regarding different commodities as well as regarding different types of underlyings (short options, spreads, outrights, long options in this sequence).

Best regards, Myrrdin

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  #6659 (permalink)
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swisstrader321 View Post
Forgot to mention that I am going to throw 5k into the account every month from my day job...so it will grow on its own. A year from now should be close to 100k. Then I assume it should be possible

I did about 10k with a 100k account last year, with not too much work and not too much experiences.
But it was a fairly uneventful year, and about 40% was via Ron's ES spread which was never in trouble last year.

This year may look different. At this time I am already behind target due to some losses. I am wary when it comes to ES right now. I have not yet opened a new spread after the volatility increased so much some weeks ago.
Possibly this is a great time for someone with more experience than I have at this time.

My point: your 12k with a 100k amount is very doable, but there may also be times when it will be harder to take that out of the market. Minimizing risk is paramount, so I would not look too much on the amount earned on a monthly basis.
IMO, with option selling we will see by the end of the year if we are successful, not month by month.

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  #6660 (permalink)
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manuel999 View Post
I did about 10k with a 100k account last year, with not too much work and not too much experiences.
But it was a fairly uneventful year, and about 40% was via Ron's ES spread which was never in trouble last year.

This year may look different. At this time I am already behind target due to some losses. I am wary when it comes to ES right now. I have not yet opened a new spread after the volatility increased so much some weeks ago.
Possibly this is a great time for someone with more experience than I have at this time.

My point: your 12k with a 100k amount is very doable, but there may also be times when it will be harder to take that out of the market. Minimizing risk is paramount, so I would not look too much on the amount earned on a monthly basis.
IMO, with option selling we will see by the end of the year if we are successful, not month by month.

Some remarks:

2017 was an excellent year for ES put sellers - not even one major drawdown. Not many years are that easy.
The most important thing in trading is not making profit, but preserve the account. 10 % profit is nice profit. As far as I know you are not a full time trader.
It is a good idea not to watch the monthly profit. In my trading statistics I only look at trades already liquidated.
There are good times for selling options, and there are not so good times. That is why I diversify not only regarding commodities, but also regarding differnt types of the underlying (see my recent post in this thread).

Good luck !

Best regards, Myrrdin

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