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Selling Options on Futures?


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Selling Options on Futures?

 
 
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 SMCJB 
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ron99 View Post
They may be taking time to exit other profitable positions to try to exit at reasonable and not fire sale prices.

That's my point. If they are negative equity that doesn't happen. FCM will liquidate everything as fast as possible. FCM's concern is not incurring more losses, not getting out at better prices.

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 kevinkdog   is a Vendor
 
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SMCJB View Post
That's my point. If they are negative equity that doesn't happen. FCM will liquidate everything as fast as possible. FCM's concern is not incurring more losses, not getting out at better prices.

FWIW, a few traders I have talked to have their doubts about the true root cause of this blowup. The prolonged liquidation seems strange to others, too.

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 datahogg 
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kevinkdog View Post
FWIW, a few traders I have talked to have their doubts about the true root cause of this blowup. The prolonged liquidation seems strange to others, too.

Don't worry, the lawyers will find out.

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 jokertrader 
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You can also game the system for the 2/20 structure by trading less or more...also depends on the contract for the 20% is it net profit shown on account in that month or is it the ending balance compared to last month with open positions..btw Ron that’s a lot in commissions ...wondering what astronomical amount he charged as commissions


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 ron99 
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jokertrader View Post
You can also game the system for the 2/20 structure by trading less or more...also depends on the contract for the 20% is it net profit shown on account in that month or is it the ending balance compared to last month with open positions..btw Ron that’s a lot in commissions ...wondering what astronomical amount he charged as commissions


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You must have missed my sentence stating he charged $69 per contract RT. He didn't do 2-20 as far as I know.

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 ron99 
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kevinkdog View Post
FWIW, a few traders I have talked to have their doubts about the true root cause of this blowup. The prolonged liquidation seems strange to others, too.

Why? The positions and quantity he had on were huge losers.

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 ron99 
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History of CME NG margin increases.
Nov 8 +15.4%
Nov 13 +8.9%
Nov 14 +14.3%
Nov 19 +32.1%
Nov 21 +27%

Or +141% from Nov 7 to Nov 21.

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CafeGrande
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ron99 View Post
Greed.

He was doing more RTs when doing ratio spread because he was buying options along with shorts.

He made more on my account than I did.

Wow! That's a lot. I always wondered why he wasn't 2/20 like some CTAs, especially with a high probability strategy like selling options. That helps explain why.

 
Harvard16
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kevinkdog View Post
FWIW, a few traders I have talked to have their doubts about the true root cause of this blowup. The prolonged liquidation seems strange to others, too.

Here is a link to the spreadsheet of positions in NG, this was for a +/- 600k account, with entry exits, for the size of account the position size is insane at over 250 short calls, true they looked very slow to address getting out of this. A lot of questions to be answered.

https://docs.google.com/spreadsheets/d/1-oj5UkqU0tMHrMnIEiuIYmTlxVWoU-VJqumykJ3IMUA/edit

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 ron99 
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Harvard16 View Post
Here is a link to the spreadsheet of positions in NG, this was for a +/- 600k account, with entry exits, for the size of account the position size is insane at over 250 short calls, true they looked very slow to address getting out of this. A lot of questions to be answered.

https://docs.google.com/spreadsheets/d/1-oj5UkqU0tMHrMnIEiuIYmTlxVWoU-VJqumykJ3IMUA/edit

I wanted to confirm the data on this spreadsheet.

I looked at vol on the days this spreadsheet said it added March 2019 options in Jan 2018. There was a large volume traded on the days on the spreadsheet.

What makes no sense is selling March 19 calls for about 0.055 to 0.060 and not exiting July 2018 when premiums were < 0.020. Or exiting Sep 2018 when premiums were < 0.015.

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