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Selling Options on Futures?


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Selling Options on Futures?

  #1931 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
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enderqa View Post
ron99- where do you get your information on the OI totals on CL (or any futures) options? Thanks in advance.

For CME products https://www.cmegroup.com/tools-information/build-a-report.html?report=dailybulletin
Use the PG01 & PG02 reports for totals by commodity. Other reports lower on page for each contract.

For ICE https://www.ice.com/marketdata/reports/ReportCenter.shtml
Use Category-End of Day Report

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  #1932 (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

Key Passages From [AUTOLINK]Fed[/AUTOLINK] Minutes - Real Time Economics - WSJ

NO CHANGE IN THE STANCE ON BOND BUYING: If economic conditions improved broadly as expected, the Committee would moderate the pace of its securities purchases later this year. And if economic conditions continued to develop broadly as anticipated, the Committee would reduce the pace of purchases in measured steps and conclude the purchase program around the middle of 2014.

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  #1933 (permalink)
 Reno 
Uzbekistan
 
Experience: Intermediate
Platform: QST
Trading: Stocks. Options
Posts: 2 since Mar 2013
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Hi, Ron99

Was wondering if you could share more info with me about your risk management in your trading system.

1) Do you have a criteria with closing a lossing positions (margin, PL or smth else)?
2) Do you have a statistics of your average profit and losing position?

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  #1934 (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


Reno View Post
Hi, Ron99

Was wondering if you could share more info with me about your risk management in your trading system.

1) Do you have a criteria with closing a lossing positions (margin, PL or smth else)?
2) Do you have a statistics of your average profit and losing position?

1) I generally look at the excess margin I had when I put on the position. If that is used up then it is time to move on. But I don't strictly adhere to that. I look at why the position has moved and use that to determine whether to stay or leave it. But it takes years and years of experience trading to get to that point. I have been trading 15 years.

2) For 2012 Short options - 746 trades of 5,034 contracts = 150k net profit. A lot less contracts than 2011 but more profit. 99.7% winners.

2013 will not be as good. Lost big money on $200 2 day GC crash.
So far 730 trades of 8,211 contracts = 159k net profit. 95.5% winners.

Average net profit
2012 $30/contract.
2013 $19/contract.

2013 Partial Details
KC 2,638 contracts 74k net profit 100% winners all rode to expiration.
CL 1,646 contracts 67k net profit
ES 1,071 contracts 28k net profit

GC 185 contracts 57k net loss

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  #1935 (permalink)
Raven
Huntsville AL/USA
 
Posts: 54 since May 2012
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I have been burned by CT before. I am thankful I don't have any Puts at this time.

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  #1936 (permalink)
 kevinkdog   is a Vendor
 
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Raven View Post
I have been burned by CT before. I am thankful I don't have any Puts at this time.

I have Dec 65 Puts to go with 112 Calls. I was getting worried about the calls, and 2 days later, now I'm more concerned about the Puts.

I still think both will expire worthless...

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  #1937 (permalink)
BlueRoo
Brisbane, Queensland, Australia
 
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robby View Post
Hi All,

I have an account with Halifax who seem to be more conservative than optionsxpress, I want to sell NOV CLX13 STRIKE 135 CALL @ .06 and there margin requirement is $1682.00.... With my bank of $70k / 5 = $14k I would allocate 5 different instruments then use a 3x margin cover which would be $14k /3 = $4666 of margin.

Initial Margin $1682... so that's $4666 / $1682 = 2 contracts..

Question is this to conservative?

Thanks for any feed back.


Robby, HALIFAX is a full service retail brokerage. There are more wholesale brokers in AUS that reflect the similar margin requirements for OX that Kevin posted. BBY and AXIOM are two alternatives. But as full service brokerages the commission are much higher than OX.

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  #1938 (permalink)
vmaiya73
Salt Lake City, USA
 
Posts: 88 since Jul 2011
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Thanks Ron for sharing your P/L;

Gives motivation for beginners like me that this method with risk managment works great. Unfortunately, I still try to daytrade and day in and day out get burned. Live and learn.

V

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  #1939 (permalink)
 
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 eudamonia 
Sacramento, CA
 
Experience: None
Platform: None
Broker: ADM and Sierra Charts
Trading: ES, CL
Posts: 315 since Jul 2010
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kevinkdog View Post
I have Dec 65 Puts to go with 112 Calls. I was getting worried about the calls, and 2 days later, now I'm more concerned about the Puts.

I still think both will expire worthless...

I hope that is the case since you have those puts on. I can't believe what has happened in the last 2 days. Before that I was preparing to take a small loss on my 120 calls.

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  #1940 (permalink)
 kevinkdog   is a Vendor
 
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eudamonia View Post
I hope that is the case since you have those puts on. I can't believe what has happened in the last 2 days. Before that I was preparing to take a small loss on my 120 calls.

Crazy, isn't it? Extreme price movements are definitely tempered with deep OTM options.

I'm OK with the puts for now, but if the underlying goes much lower, and my margin excess disappears, I'll just bail.

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