Selling Options on Futures? - Options on Futures | futures.io
futures.io futures trading


Selling Options on Futures?
Started: by ron99 Views / Replies:584,689 / 5,779
Last Reply: Attachments:649

Welcome to futures.io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.


You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Reply
 649  
 
Thread Tools Search this Thread
 

Selling Options on Futures?

  #751 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,377 since Jul 2011
Thanks: 650 given, 4,037 received
Forum Reputation: Legendary

FYI There are large sized bids in KCK3 190, 192.5 and 195 calls. One to two cents under settlement but futures are down 1.50.

I'm getting 2.4% ROI on them.

Edit. The bids on the 190s and 192.5s are gone. 195s are still there.
Edit. Now they all have been pulled.


Last edited by ron99; February 12th, 2013 at 10:20 AM. Reason: Bids gone
Reply With Quote
 
  #752 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,377 since Jul 2011
Thanks: 650 given, 4,037 received
Forum Reputation: Legendary

FWIW Central Plains drought again?

Warm, dry spring and a developing La Niņa are forecast

Reply With Quote
The following 3 users say Thank You to ron99 for this post:
 
  #753 (permalink)
Trading for Fun
Reno, USA
 
Futures Experience: Intermediate
Platform: esignal
Favorite Futures: Oil
 
Posts: 70 since Jul 2011
Thanks: 14 given, 9 received


Finally took the plunge...had to at some point

Sold April 82 /CL puts for $100 margin is $662 currently. I took a delta of -.03 with a probability of expriring in the money of 3.61 %.

please critique this trade if its something you guys wouldnt have done.

thanks

V

Reply With Quote
 
  #754 (permalink)
Market Wizard
Cleveland, OH
 
Futures Experience: Advanced
Platform: QST
Broker/Data: QST, DeCarley Trading, Gain
Favorite Futures: Options on Futures
 
Posts: 2,377 since Jul 2011
Thanks: 650 given, 4,037 received
Forum Reputation: Legendary


vmaiya73 View Post
Finally took the plunge...had to at some point

Sold April 82 /CL puts for $100 margin is $662 currently. I took a delta of -.03 with a probability of expriring in the money of 3.61 %.

please critique this trade if its something you guys wouldnt have done.

thanks

V

The seasonals are in your favor.

But for a first trade I would have suggested something less risky. A lower strike, especially in a fast moving commodity like CL. Or move to May to get the same dollars with a lower strike.

A May 73 last traded at .10 but the delta is lower than your Apr 82 at -.0175.

So keep a close watch on it and be ready to dump it if things change drastically.

Reply With Quote
 
  #755 (permalink)
Trading for Fun
Reno, USA
 
Futures Experience: Intermediate
Platform: esignal
Favorite Futures: Oil
 
Posts: 70 since Jul 2011
Thanks: 14 given, 9 received

Futures Edge on FIO

Which products do you trade?

 
Ill keep an eye on it.

Thanks for the advise; next trade Ill analyze it more carefully.

V

Reply With Quote
 
  #756 (permalink)
Trading for Fun
Houston, Texas
 
Futures Experience: Advanced
Platform: Interactive Brokers, OptionsXpress
Broker/Data: Options Express
Favorite Futures: Options on Futures
 
MJ888's Avatar
 
Posts: 165 since Sep 2012
Thanks: 37 given, 123 received


vmaiya73 View Post
Finally took the plunge...had to at some point

Sold April 82 /CL puts for $100 margin is $662 currently. I took a delta of -.03 with a probability of expriring in the money of 3.61 %.

please critique this trade if its something you guys wouldnt have done.

thanks

V

I sold the May CL 75 puts last week at 0.19, the April 82 puts are closer to the money but you have less time to expiration. Seasonal charts are in your favor but like Ron said, need to keep an eye on it.

Reply With Quote
 
  #757 (permalink)
Trading for Fun
Houston, Texas
 
Futures Experience: Advanced
Platform: Interactive Brokers, OptionsXpress
Broker/Data: Options Express
Favorite Futures: Options on Futures
 
MJ888's Avatar
 
Posts: 165 since Sep 2012
Thanks: 37 given, 123 received

Opts,

What do you make of this grains sell off? Bummer that I did not sell the W calls late last week. Read the report that Ron posted concerning possible drought again this spring/summer. Might be a good idea to take a look at call spreads now that grains have sold off. Any thoughts?

Reply With Quote
 
  #758 (permalink)
Elite Member
NW Florida
 
Futures Experience: Intermediate
Platform: OX and TOS
Favorite Futures: Futures Options, Stocks
 
opts's Avatar
 
Posts: 233 since Aug 2012
Thanks: 29 given, 107 received


MJ888 View Post
Opts,

What do you make of this grains sell off? Bummer that I did not sell the W calls late last week. Read the report that Ron posted concerning possible drought again this spring/summer. Might be a good idea to take a look at call spreads now that grains have sold off. Any thoughts?


I saw nothing but down per the chart I posted a week or so ago and the break of support here tells me prices might have no trouble heading to 700 so if I were going to go the call spread route I might want to wait. I just see more downside for wheat here. I'm heavy the 900 calls that expire 3/22 so I'm going to wait this out until those expire. I was also short the 680 puts but bought those back several days ago for a few $. The calls are pretty much deflated with premium right now because of the last few big move down days and the only way I would want to sell them is if there is some kind of short covering. The seasonal trend is pretty much down this time of year so I may take the approach 'selling the highs' for short calls but it may be several sessions before some of those way safe OTM's to be worth at least $50.....

Reply With Quote
 
  #759 (permalink)
Trading for Fun
Reno, USA
 
Futures Experience: Intermediate
Platform: esignal
Favorite Futures: Oil
 
Posts: 70 since Jul 2011
Thanks: 14 given, 9 received

Do you guys look for a minimum amount you would like to collect or concentrate more on ROI ?

Thanks

V

Reply With Quote
 
  #760 (permalink)
Elite Member
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,212 since Jul 2012
Thanks: 1,010 given, 4,017 received



vmaiya73 View Post
Do you guys look for a minimum amount you would like to collect or concentrate more on ROI ?

Thanks

V


For me, and I'm new at selling options, it is all about ROI. For me, this is a complete shift in my thinking from futures trading, where I focus on other metrics.

Reply With Quote

Reply



futures.io > > > > Selling Options on Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Anthony Drager: Pulling the trigger with confidence

Elite only
 

Leo Murphy: The Art and Science of Technical Analysis

Elite only
 

FuturesTrader71: Ask Me Anything

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Crude Oil (CL) futures inverse pairing options Big Mike Commodities Futures Trading 8 December 12th, 2013 12:00 PM
Recommend futures, options Broker? sam1197 Brokers and Data Feeds 17 March 27th, 2013 01:42 AM
Trading Futures with options as protection Gooffy2010 Commodities Futures Trading 6 October 2nd, 2012 05:55 PM
Selling Njniatrader sam1197 NinjaTrader 22 June 28th, 2012 01:40 PM
Zen-Fire Futures options tici88 Brokers and Data Feeds 1 July 30th, 2011 10:16 AM


All times are GMT -4. The time now is 05:14 PM.

no new posts
Page generated 2017-01-23 in 0.13 seconds with 21 queries on phoenix via your IP 23.23.34.22