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Selling Options on Futures?


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Selling Options on Futures?

  #6731 (permalink)
 rsm005 
vancouver BC/Canada
 
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
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Are you trying to change anything with the strategy to account for the increased volatility? Moving further out in price or time? I've been out all year and want to do some additional testing before entering back in. I am going to do some additional testing with either more margin or going out as far as 30% below the current strike.

/rsm005/

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  #6732 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
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rsm005 View Post
Are you trying to change anything with the strategy to account for the increased volatility? Moving further out in price or time? I've been out all year and want to do some additional testing before entering back in. I am going to do some additional testing with either more margin or going out as far as 30% below the current strike.

/rsm005/

I went from 4xIM to 6xIM. No other changes.

The longs are 1 delta. Can't move any lower on those and have them do any good. So if longs are 1 delta then you can't move lower on the shorts because the ROI will drop too low to be worth trading.

If it isn't broke don't fix it.

We searched 4 years to find this strategy. We have seen over and over traders blowing up because they didn't have the correct strategy (that firm that lost $600 million in two days comes to mind).

I'm going to stick with what works. Maybe slightly alter it IF we can find something a little better. But I doubt it.

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  #6733 (permalink)
 ron99 
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


April 19 I sold EW3n8p2080(-2)p1780(+3) for 4.65. Margin 675. Using 6xIM.

You can sell them for a higher price right now.

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  #6734 (permalink)
 sapiens 
Singapore
 
Experience: Beginner
Platform: TOS, MT4
Trading: ES
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ron99 View Post
April 19 I sold EW3n8p2030(-2)p1780(+3) for 4.65. Margin 675. Using 6xIM.

You can sell them for a higher price right now.

This is Aug Monthly (134 DTE)? Sorry abit of noob question. Do i tell "EW3n8" refers to which expiry?

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  #6735 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
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sapiens View Post
This is Aug Monthly (134 DTE)? Sorry abit of noob question. Do i tell "EW3n8" refers to which expiry?

EW3 is week 3 options. "n" is July. These expire July 20. 92 DTE.

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  #6736 (permalink)
 sapiens 
Singapore
 
Experience: Beginner
Platform: TOS, MT4
Trading: ES
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ron99 View Post
EW3 is week 3 options. "n" is July. These expire July 20. 92 DTE.

Thanks! Hmm why do i see the mid price at $3.45 now? considering /ES dropped abit more in the past 1-2hours, the premium should go up not down right

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  #6737 (permalink)
 ron99 
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


sapiens View Post
Thanks! Hmm why do i see the mid price at $3.45 now? considering /ES dropped abit more in the past 1-2hours, the premium should go up not down right

Are you sure you are looking at the correct contracts? The correct number of contracts (2 shorts and 3 longs)?

I have right now EW3n8p2080 bid 5.50 ask 6.00. EW3n8p1780 bid 1.90 ask 2.05. That equates to bid 4.85 ask 6.30.

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  #6738 (permalink)
 sapiens 
Singapore
 
Experience: Beginner
Platform: TOS, MT4
Trading: ES
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ron99 View Post
Are you sure you are looking at the correct contracts? The correct number of contracts (2 shorts and 3 longs)?

I have right now EW3n8p2080 bid 5.50 ask 6.00. EW3n8p1780 bid 1.90 ask 2.05. That equates to bid 4.85 ask 6.30.


Ok thanks! i thought the shorts are at 2030 instead of 2080. think u posted the wrong strike in your previous post

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  #6739 (permalink)
 ron99 
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


sapiens View Post
Ok thanks! i thought the shorts are at 2030 instead of 2080. think u posted the wrong strike in your previous post

I did post incorrect strike. It should be 2080. Sorry.

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  #6740 (permalink)
tinaturner
BARCELONA/SPAIN
 
Posts: 33 since Sep 2013
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Ron, I thing you have sell the spread in 3.65. Not 4.65. Is it right?

Thanks

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