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Selling Options on Futures?


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Selling Options on Futures?

  #1131 (permalink)
 
opts's Avatar
 opts 
NW Florida
 
Experience: Intermediate
Platform: OX and TOS
Trading: Futures Options, Stocks
Posts: 234 since Aug 2012
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The sun finally came out yesterday. But, the highs will be in the upper 50's tomorrow. I have have no sympathy for the spring breakers that absolutely trash the beaches here during this time of year.

As far as record keeping goes...I put together an Excel spreadsheet that I enter all of my trades in along with fees and commissions and computes the % return per trade and overall % return for the year based on my starting 60:40 cash:margin for the year. Along the bottom I have a tab(sheet) for each chart that I made a trade from. I annotate the chart in NinjaTrade and copy/paste that into the Excel sheet so I can review the trades and the chart in one place.

No grain trades yet, crop report is out in a few days. Currently in SI, and CL. Watching GC for another possible strangle..

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  #1132 (permalink)
 
Angelo1's Avatar
 Angelo1 
Adelaide Australia
 
Experience: Intermediate
Platform: Ninja > MC
Broker: AMPs
Trading: ES
Posts: 147 since May 2011
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Hi Guys
anyone care to share a "brief" outline of fair option pricing and with what broker you are currently getting,

Cheers Angelo

"If you believe you CAN, OR believe you CAN'T, you're RIGHT!"
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  #1133 (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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OX raised margins on grains by 20% today.

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  #1134 (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

I noticed something interesting. ES usually takes a dip the first two weeks of April. 30 & 50 the last 2 years. I'm guessing people pulling money out of stocks to pay taxes.

ES then usually rises from April 15th to the end of the month. Then it crashes in May.

Also with no trading on Friday, there will be 3 days this weekend of time erosion on our options with no trading. Get your accounts full before then.

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  #1135 (permalink)
kisskais
San Francisco
 
Posts: 13 since Mar 2013
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Is anyone using TOS platform and noticed the difference between the margin requirement for the call and put. For example I was looking at July 120C @ .10 and the margin is $688 and for the same month 75P @ .10 the margin is $126.

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  #1136 (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


kisskais View Post
Is anyone using TOS platform and noticed the difference between the margin requirement for the call and put. For example I was looking at July 120C @ .10 and the margin is $688 and for the same month 75P @ .10 the margin is $126.

Call margin is always higher than puts because there is a limit on how far things can go down but no limit on how high things can go.

The premiums I have aren't matching yours. ??? Are you talking about CL?

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  #1137 (permalink)
kisskais
San Francisco
 
Posts: 13 since Mar 2013
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ron99 View Post
Call margin is always higher than puts because there is a limit on how far things can go down but no limit on how high things can go.

The premiums I have aren't matching yours. ??? Are you talking about CL?

Hi Ron, yes this quote are for crude oil (/CL), are you using thinkorswim?

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  #1138 (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

Not TOS, but the 120 Jul calls settled at .05 yesterday and traded there today. Where are you getting .10?

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  #1139 (permalink)
morby1369
los angeles
 
Posts: 1 since Mar 2013
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Have you ever looked at trading the weekly options...really nice decay.

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  #1140 (permalink)
kisskais
San Francisco
 
Posts: 13 since Mar 2013
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ron99 View Post
Not TOS, but the 120 Jul calls settled at .05 yesterday and traded there today. Where are you getting .10?

No my asking price limit that I set to sell is .10, the 120 call current price is @0.04- .05

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