NexusFi: Find Your Edge


Home Menu

 





Selling Options on Futures?


Discussion in Options

Updated
      Top Posters
    1. looks_one ron99 with 2,221 posts (4,489 thanks)
    2. looks_two SMCJB with 346 posts (733 thanks)
    3. looks_3 kevinkdog with 341 posts (400 thanks)
    4. looks_4 myrrdin with 288 posts (408 thanks)
      Best Posters
    1. looks_one SMCJB with 2.1 thanks per post
    2. looks_two ron99 with 2 thanks per post
    3. looks_3 myrrdin with 1.4 thanks per post
    4. looks_4 kevinkdog with 1.2 thanks per post
    1. trending_up 1,950,287 views
    2. thumb_up 9,259 thanks given
    3. group 458 followers
    1. forum 7,370 posts
    2. attach_file 794 attachments




 
Search this Thread

Selling Options on Futures?

  #1691 (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


lapuente2002 View Post
I only trade futures, but I am very interested in trading options on futures

Welcome and good luck.

Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
Are there any eval firms that allow you to sink to your …
Traders Hideout
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
Futures True Range Report
The Elite Circle
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
36 thanks
NexusFi site changelog and issues/problem reporting
25 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #1692 (permalink)
UnZane
Orlando Florida
 
Posts: 13 since Jun 2013
Thanks Given: 12
Thanks Received: 5


ron99 View Post
Where do you get historicalvol, UnZane?

You can also use implied volatility

This link can help you calculate
lol - imagine a link here for you ron - I have to post another three post before I can share


Let me know if it makes sense. Any heartburn of the notional value of your account and leverage?

Reply With Quote
  #1693 (permalink)
UnZane
Orlando Florida
 
Posts: 13 since Jun 2013
Thanks Given: 12
Thanks Received: 5



ron99 View Post
Welcome and good luck.

Yes good luck

Reply With Quote
  #1694 (permalink)
UnZane
Orlando Florida
 
Posts: 13 since Jun 2013
Thanks Given: 12
Thanks Received: 5


rosho01 View Post
interesting comparison between miles driven (US) and S&P....

Interesting!

Reply With Quote
Thanked by:
  #1695 (permalink)
UnZane
Orlando Florida
 
Posts: 13 since Jun 2013
Thanks Given: 12
Thanks Received: 5


UnZane View Post
You can also use implied volatility

This link can help you calculate
lol - imagine a link here for you ron - I have to post another three post before I can share


Let me know if it makes sense. Any heartburn of the notional value of your account and leverage?

Lets try this again
https://www.cmegroup.com/market-data/datamine-historical-data/methodology.html

It worked! I calculate it both ways

Reply With Quote
  #1696 (permalink)
 rosho01 
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


ron99 View Post
Where do you get historicalvol, UnZane?

historical & implied vols are provided by some brokers - IB have it.

Visit my NexusFi Trade Journal Reply With Quote
  #1697 (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

ICE Live Webinar: Analysts' Forecast for Soft Commodity Markets

Wed June 12th Time: 3:00 PM ET/12:00 PM PT/8:00 PM GMT

Presenters:
Judy Ganes, Founder and President, J Ganes Consulting
Sharon Johnson, Senior Cotton Specialist, Knight Futures
Jack Scoville, Vice President and Senior Market Analyst, Price Futures Group

Please join ICE for a mid-year analysts’ roundtable on the cotton, coffee, sugar, cocoa and orange juice markets. The analysts will focus on market fundamentals, recent reports and the impact they may have on prices in the months ahead. You’ll also hear a same-day analysis of the USDA crop report for cotton. Whether you’re a position trader or a short-term trader, the roundtable can provide a context for your trading plans. The analysts will take your questions in a Q+A session included in the webinar

https://icewebinar.webex.com/ec0606l/eventcenter/enroll/join.do?siteurl=icewebinar&confId=1003905674

Started this thread Reply With Quote
  #1698 (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

Here is how not to trade.

Quoting 
The (CFTC) Order finds that from January 1, 2008 through March 1, 2009, FCStone failed to diligently supervise its officers’ and employees’ activities relating to risks associated with its customers’ accounts, and with the Account, which was primarily controlled by two individuals who traded natural gas futures, swaps, and option contracts.

Because FCStone did not have adequate credit and concentration risk policies and controls, the two Account owners accumulated a massive position -- more than 2.5 million relatively illiquid commodity option contracts, which the Account owners could not afford to maintain. After the value of the positions deteriorated over the course of 2008, the Account owners were unable to meet their financial obligations with respect to the Account.

As FCMs are required to do in that situation, FCStone assumed the financial obligations to the clearing house that carried the positions. Unable to successfully manage the positions, FCStone ended up suffering $127 million in losses. The Commission found that FCStone violated Regulation 166.3 by failing to diligently supervise in a manner designed to mitigate risks associated with customer accounts, such as the risks arising from unsatisfied margin obligations, negative account balances, and the handling of large relatively illiquid positions.

CFTC fines FCStone LLC $1.5 million for lax account supervision

I was trading at FC Stone when this went down. They freaked out. They went from allowing these guys 2.5 million positions to telling me I couldn't have 10 far OTM short options in a 15k account. I closed all accounts there after that.

Started this thread Reply With Quote
  #1699 (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

Here's a good example of why I don't trust anything that Phil Flynn (energy analyst) says.

He wrote,

"according to an Energy Information Administration-sponsored study released today. “Technically Recoverable Shale Oil and Shale Gas Resources" estimates that shale resources considered in conjunction with EIA's own assessment of resources within the U.S. indicate technically recoverable resources of 345 billion bbl of world shale oil and 7,299 Tcf of world shale gas."

So according to that number and assuming the world consumes 19 million barrels of oil per day, we then have 497 years of oil left or .04974765681 if you want to get technical."


I emailed him and said,

345 billion divided by 19 million is 49.7 years not 497 years.

But world oil consumption is 87 million bpd not 19. Where did you get 19?

He replied,

U r right

Thanks,

Phil Flynn
The PRICE Futures Group

Started this thread Reply With Quote
Thanked by:
  #1700 (permalink)
seemasp
west palm beach + Florida
 
Posts: 31 since Mar 2013
Thanks Given: 10
Thanks Received: 42



ron99 View Post
Here's a good example of why I don't trust anything that Phil Flynn (energy analyst) says.

He wrote,

"according to an Energy Information Administration-sponsored study released today. “Technically Recoverable Shale Oil and Shale Gas Resources" estimates that shale resources considered in conjunction with EIA's own assessment of resources within the U.S. indicate technically recoverable resources of 345 billion bbl of world shale oil and 7,299 Tcf of world shale gas."

So according to that number and assuming the world consumes 19 million barrels of oil per day, we then have 497 years of oil left or .04974765681 if you want to get technical."


I emailed him and said,

345 billion divided by 19 million is 49.7 years not 497 years.

But world oil consumption is 87 million bpd not 19. Where did you get 19?

He replied,

U r right

Thanks,

Phil Flynn
The PRICE Futures Group

The numbers just don't make sense here.... 345 billion = 345,000 million which divided by 19 million (or 87 million for world demand) comes to 18157.89 years (or 3965.52 years in case of 87 million).

I do not ever remember reading in any article related to oil mentioning about more than 100 or 200 years of oil supply in world left to extract. Per these numbers US alone has more than 3900 years of oil supply for entire world....WOW...

Reply With Quote




Last Updated on July 28, 2023


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts