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Selling Options on Futures?
Updated July 28, 2023
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Selling Options on Futures?
May 23rd, 2013, 05:02 PM
London/UK
Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker: IB / IQfeed
Trading: Bund
Posts: 438 since Sep 2012
Thanks Given: 260
Thanks Received: 96
eudamonia
Some nice CLQ365P going at 0.04 this morning with crude down. That's $35 net
premium with $78 margin and $156 buffer for a ROI of about 7% per month.
contract @0.04 with OX i get:
Can you help answer these questions
Best Threads (Most Thanked)
May 23rd, 2013, 05:13 PM
Brisbane , Australia
Experience: Intermediate
Platform: NT, OX
Trading: Futures
Posts: 51 since Sep 2009
Thanks Given: 32
Thanks Received: 13
ron99
At very volatile times like this I increase the excess for CL to 3X or even 4X.
The 78 + 156 equals 234. Margin on a 70 put is 195 at OX. The
premium is $40 higher. So your 234 just barely covers a $5 drop in futures. And maybe even not that if
volatility increases and that jacks margin and premium up more than expected.
It sure looks like the buyer of the 300 coffee calls is putting on a hedge. He wouldn't be bidding it so much higher if he was trying to make profit.
Also that is what happened last year. OI went up but OI didn't drop when the buyer could have taken a profit. OI stayed high to expiration.
May 23rd, 2013, 05:17 PM
Sacramento, CA
Experience: None
Platform: None
Broker: ADM and Sierra Charts
Trading: ES, CL
Posts: 315 since Jul 2010
Thanks Given: 308
Thanks Received: 449
rosho01
hi eudamonia,
is this with OX?
selling 1 CLQ365P
contract @0.04 with OX i get:
net
premium $24.79 (40-12.99-1.47-0.75)
commission ($12.99)
fees ($1.47)
trans fees ($0.75)
do you have much smaller fees? the 12.99 commission per contract is going to kill me on a lot of trades.
May 23rd, 2013, 05:35 PM
London/UK
Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker: IB / IQfeed
Trading: Bund
Posts: 438 since Sep 2012
Thanks Given: 260
Thanks Received: 96
eudamonia
You are looking at commissions on stocks. The total cost to execute was $3.50 comms plus $1.47 fees. So net was $35.03.
May 23rd, 2013, 05:40 PM
Brisbane , Australia
Experience: Intermediate
Platform: NT, OX
Trading: Futures
Posts: 51 since Sep 2009
Thanks Given: 32
Thanks Received: 13
rosho01
so the 'estimated' commission as per the scrn shot is wrong on the order form? odd.
May 23rd, 2013, 05:48 PM
London/UK
Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker: IB / IQfeed
Trading: Bund
Posts: 438 since Sep 2012
Thanks Given: 260
Thanks Received: 96
crez
All US based clients have 3.50 per side. Outside US like myself have 12.99 per side unless you negotiate with them - I have manged to get $6.99 but they won't go any lower.....
May 23rd, 2013, 06:05 PM
Brisbane , Australia
Experience: Intermediate
Platform: NT, OX
Trading: Futures
Posts: 51 since Sep 2009
Thanks Given: 32
Thanks Received: 13
rosho01
ah cool, thks. bit of a stitch up for non US traders!
contracts a month but they seemed happy enough to offer 6.99. Still high in my opionion though, but the margin saving is more beneficial. And yes, just customer service.
May 23rd, 2013, 06:10 PM
London/UK
Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker: IB / IQfeed
Trading: Bund
Posts: 438 since Sep 2012
Thanks Given: 260
Thanks Received: 96
crez
Yeah, I reckon! I asked only a couple of weeks after a set up an account. I only average around 30
contracts a month but they seemed happy enough to offer 6.99. Still high in my opionion though, but the margin saving is more beneficial. And yes, just customer service.
Cheers
Adam
May 23rd, 2013, 06:18 PM
London/UK
Experience: Intermediate
Platform: IBs ladder / Market Delta charts
Broker: IB / IQfeed
Trading: Bund
Posts: 438 since Sep 2012
Thanks Given: 260
Thanks Received: 96
rosho01
theres some good vids online of kyle bass seminars explaining the japanese situation & why it cannot be rescued.
edit: heres one vid....
Kyle Bass March 14 2013 - YouTube
Bass On Japan's Turbo QE: "It Won't Be Enough" | Zero Hedge BoJ has been in the market every day but 2 since April 4th trying to hold rates down (and is failing)..."
May 23rd, 2013, 10:52 PM
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
eudamonia
Tuesday May 28th, margins for Sugar will decrease 26% from $750 to $550.
premium . I put some on but not a lot.
Last Updated on July 28, 2023
