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Selling Options on Futures?
Started:July 19th, 2011 (06:16 PM) by ron99 Views / Replies:567,857 / 5,727
Last Reply:11 Hours Ago (12:40 PM) Attachments:642

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Selling Options on Futures?

Old August 3rd, 2011, 10:48 AM   #61 (permalink)
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ron99 View Post
That is not correct. Buying a call does not offset a short put. Both would lose money if the futures drop.

To offset a short put you would buy the same put and get out of the position.

Thank you for catching that, I need to start to read through what I am writing. I've unknowingly uttered several odd statements over the past few weeks, maybe I have a tumor causing abnormal typos?

As with everything else in life, if you want something you sold back, you buy it back....

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Old August 4th, 2011, 02:06 PM   #62 (permalink)
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dutchbookmaker View Post
I would like to hear about some losing trades on selling puts during the crisis and how those went down.

Blowing up is what everyone is going to be afraid of but that is going to largely be from larger funds taking illiquid positions. I assume when things start to look bad you have no trouble getting out?

Which crisis do you want to know about? 2008? The last 2 weeks? Or some other time.

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Old August 4th, 2011, 02:10 PM   #63 (permalink)
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Shirak View Post
Thank you for your answer Gold, much appreciated.

But say that really happens, couldn't you just hedge it via the underlying futures?

Very, very risky but possible. I have never done it. The risk is that the futures whipsaws the opposite way and you are losing more money on it than you were on the option.

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Old August 4th, 2011, 02:14 PM   #64 (permalink)
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jonc View Post
do you guys build/scale into a position for options or you simple wait for a certain price had enter an entire position?

Both here. Sometimes the availability of bids limits what strikes and quantity you can do.

If they don't raise margin then I will be looking at doing more ES options because the ROI is better now. Plus plenty of quantity.

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Old August 4th, 2011, 03:21 PM   #65 (permalink)
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Futures Edge on FIO

Are you a NinjaTrader user?

 
I went back and added up my recent trading.

In the last 2.5 years I sold 8,524 options.
7,713 of them I kept to expiration and they expired worthless or OTM. 90% (none were ITM)
8,099 of them expired net profitable. 95%

Net profit 300,000+.

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Old August 8th, 2011, 05:49 AM   #66 (permalink)
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ron99 View Post
Both here. Sometimes the availability of bids limits what strikes and quantity you can do.

If they don't raise margin then I will be looking at doing more ES options because the ROI is better now. Plus plenty of quantity.


ron, had you traded options using CFD providers?

They don't seem to have a ask/bid volume and they provide options on many indices

The market had been crashing big time for the past week, I would be interested to know what kind of positions are you taking now? Selling puts?

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Old August 8th, 2011, 10:11 AM   #67 (permalink)
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jonc View Post
ron, had you traded options using CFD providers?

They don't seem to have a ask/bid volume and they provide options on many indices

The market had been crashing big time for the past week, I would be interested to know what kind of positions are you taking now? Selling puts?

What is a CFD provider?

Right now I am sitting on my hands and riding out the positions I currently have on. I have decided that you don't have to trade every day. That it's better to be safe than sorry. I will let the markets calm down before I put on new positions.

Right now my Sep GC puts, Sep & Oct NG calls and Sep KC strangles (expire Friday) are OK. My Sep 65 crude puts are feeling a little heat, but they expire in 9 days. My Sep RB 2.20 puts are feeling some heat.

My 1800 Sep GC calls are feeling the most heat. Will GC go close to 1800 in 18 days? I doubt it, but to be safe I will probably dump them. I only have 10.

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Old August 9th, 2011, 04:47 AM   #68 (permalink)
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What is a CFD provider?

Right now I am sitting on my hands and riding out the positions I currently have on. I have decided that you don't have to trade every day. That it's better to be safe than sorry. I will let the markets calm down before I put on new positions.

Right now my Sep GC puts, Sep & Oct NG calls and Sep KC strangles (expire Friday) are OK. My Sep 65 crude puts are feeling a little heat, but they expire in 9 days. My Sep RB 2.20 puts are feeling some heat.

My 1800 Sep GC calls are feeling the most heat. Will GC go close to 1800 in 18 days? I doubt it, but to be safe I will probably dump them. I only have 10.


CFD - contract for difference. notable cfd providers are cmc markets, ig markets.

Does it make sense to buy volatility now? The markets are making huge swings.

GC now look possible to break 1800 anytime but it is something I did not expect would happen in summer time

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Old August 9th, 2011, 08:55 AM   #69 (permalink)
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jonc View Post
CFD - contract for difference. notable cfd providers are cmc markets, ig markets.

Does it make sense to buy volatility now? The markets are making huge swings.

GC now look possible to break 1800 anytime but it is something I did not expect would happen in summer time

I don't trade on volatility. I sell options based on where I don't think the market is likely to go. That way I don't need the market to move a certain direction. Just not move to much against my position.

For example to others reading this thread, I could have sold 1300 gold puts when the market was at 1500. As long as the market stayed above 1400 I was fine. Of course violent moves against my position can cause problems.

It's easier to predict where the market isn't going with a cushion than to predict which way it is going with no cushion.

Yes gold is a surprise. I expected 1750-1800 this fall but not now. That is why I didn't put on many gold calls.

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Old August 9th, 2011, 09:00 AM   #70 (permalink)
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ron99 View Post
Right now my Sep GC puts, Sep & Oct NG calls and Sep KC strangles (expire Friday) are OK. My Sep 65 crude puts are feeling a little heat, but they expire in 9 days. My Sep RB 2.20 puts are feeling some heat.

My 1800 Sep GC calls are feeling the most heat. Will GC go close to 1800 in 18 days? I doubt it, but to be safe I will probably dump them. I only have 10.

I had to dump my Sep 65 crude puts, my Sep 2.20 RB puts and my 1800 gold calls yesterday. Lost some money but still up 62% for the year. I was up 76%.

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