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Selling Options on Futures?
Updated: Views / Replies:867,937 / 6,915
Created: by ron99 Attachments:766

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Selling Options on Futures?

  #6781 (permalink)
Elite Member
Cleveland, OH
 
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datahogg View Post
Ron, have you made it home yet?

Are you talking about my vacation? Got home in Feb. Was gone 41 days.

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  #6782 (permalink)
Elite Member
Cleveland, OH
 
Futures Experience: Advanced
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ES margins are increasing 3.7% effective on Friday. They are still lower than they were before May 7 when they were lowered.

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  #6783 (permalink)
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Accokeek, USA
 
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ron99 View Post
You have the wrong strike. The shorts should be -3 delta and the longs -1 delta. Your 1980 strike is about -2 delta.

So the trade today would be ESu8p2070(-2)p1770(+3). Net premium from yesterday's settlements is 4.75. IM is 684. If you exit at 50% drop in 30 days the ROI is 2.2%.

Hello. I was looking at the option chain and the delta values, on TOS, have many that are the same. How do you determine which 3 and 1 delta to select? Or do you apply the 20% away from the current strike process?
And the settlement value is times $50, correct?

Attached Thumbnails
Selling Options on Futures?-sept18delta.jpg  

Last edited by KySt; May 25th, 2018 at 12:16 PM.
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  #6784 (permalink)
Elite Member
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
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KySt View Post
Hello. I was looking at the option chain and the delta values, on TOS, have many that are the same. How do you determine which 3 and 1 delta to select? Or do you apply the 20% away from the current strike process?
And the settlement value is times $50, correct?

I use XLS-SPAN. https://futures.io/options-futures/29125-pc-span.html

Deltas are also available here. http://www.cmegroup.com/daily_bulletin/current/Section48_E_Mini_S_And_P_500_Put_Options.pdf

EW3 Aug puts start on page 22 of the May 24 pdf.

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  #6785 (permalink)
Trading Apprentice
Goshen Indiana USA
 
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KySt View Post
Hello. I was looking at the option chain and the delta values, on TOS, have many that are the same. How do you determine which 3 and 1 delta to select? Or do you apply the 20% away from the current strike process?
And the settlement value is times $50, correct?

On the TOS platform you have the availability to have the option greeks go 3 or 4 decimal points.

Setup>General>Display>decimal places for greeks

Change that to 3 or 4 and you can then see which strike will be closest to 3 and 1 (.0300 and .0100) and choose the appropriate strike for your trade parameters.

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  #6786 (permalink)
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Can someone please tell me the total margin for short selling 470-strike corn options december contract in decarley. @ron earlier you shared a margin pdf for o'brien. I can see spec initial and spec maintanance listed separately. Does it mean the sum of those need to be maintained? For example spec initial is $730 and spec maintainance is $780 so does that mean $1510 will be blocked?


Last edited by jefforey; May 31st, 2018 at 03:15 PM.
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  #6787 (permalink)
Market Wizard
Linz Austria
 
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jefforey View Post
Can someone please tell me the total margin for short selling 470-strike corn options december contract in decarley.

According to their platform, the initial margin for the ZCZ C470 is $437.80 .

Best regards, Myrrdin

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  #6788 (permalink)
Elite Member
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jefforey View Post
Can someone please tell me the total margin for short selling 470-strike corn options december contract in decarley. @ron earlier you shared a margin pdf for o'brien. I can see spec initial and spec maintanance listed separately. Does it mean the sum of those need to be maintained? For example spec initial is $730 and spec maintainance is $780 so does that mean $1510 will be blocked?

Spec initial is a higher amount than spec maintenance.

To enter a new position you need to have spec initial margin. After adding the position you need to keep the spec maintenance blocked.

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  #6789 (permalink)
Trading Apprentice
Udon Thani Thailand
 
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New Member

Hi All,
I am about to start trading vertical credit spreads on futures options.
I am in Australia and TOS won't let me join them.
I was going to use IB, but sounds like that's not a good idea from this forum.
I need a broker that supports selling options, has a trading platform that I can use myself, has decent margins and will allow overseas traders
Any suggestions?
Thanks in advance.
Mick

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  #6790 (permalink)
Market Wizard
Linz Austria
 
Futures Experience: Advanced
Platform: Zaner360, TWS, Vantage
Broker/Data: DeCarley, IAB, RJO
Favorite Futures: Commodities
 
Posts: 1,375 since Nov 2014
Thanks: 1,677 given, 1,682 received



mickojak View Post
Hi All,
I am about to start trading vertical credit spreads on futures options.
I am in Australia and TOS won't let me join them.
I was going to use IB, but sounds like that's not a good idea from this forum.
I need a broker that supports selling options, has a trading platform that I can use myself, has decent margins and will allow overseas traders
Any suggestions?
Thanks in advance.
Mick

If I remember correctly a trader from Australia also worked / works with DeCarley.

I work with DeCarley for some years. Carley is very friendly towards option sellers, has moderate fees (but more expensive than IB), and offers the best service I ever received from a broker.

I have a second account with IB, where I hold my stocks. I also use this account for future and option trades in case there is some money left. But in case I would have only one account I definitely would prefer DeCarley for option selling.

I live in Austria, and was always supported by her regarding specific issues regarding non-US Traders. The only disadvantage is that they only offer reports in US Dollar. This makes tax declaration a bit more difficult.

Best regards, Myrrdin

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