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 1,951,546 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?

  #2371 (permalink)
alfredoe
Medellin
 
Posts: 32 since Apr 2012
Thanks Given: 36
Thanks Received: 15

This is my second year selling options.

Up to October 31st, I sold 283 options in 67 trades ( 86% winners). I had a 75% annualized return.

Major losses in soybeans and natural gas. I was able to stick to 100% maximum loss in most of my trades. Basically I sell OTM calls at 90 days or more.

At the moment I am out of the grains market because of the low premium.

Best regards and thanks for all your help.

Alfredo E.

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Online prop firm The Funded Trader (TFT) going under?
Traders Hideout
Deepmoney LLM
Elite Quantitative GenAI/LLM
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Better Renko Gaps
The Elite Circle
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
 
  #2372 (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

Well this is the final straw. OX increased their markup on KC margins to 50%!

I am pulling the majority of my money out of OX.

ICE decreased margins on Thursday by 38% but for some reason OX thought that was too low so they jacked up their markup from 20% to 50%. Yet on SB where margin is only $825 for a futures OX has no markup.

I knew Schwab would ruin a good thing. It usually happens when a large corporation buys a smaller company.

Started this thread Reply With Quote
  #2373 (permalink)
 
Physicsman's Avatar
 Physicsman 
London + Great Britain
 
Experience: Master
Platform: Interactive Brokers, OptionsXpress, TradeMonster, RJO, AmiBroker, Wealthlab
Trading: Futures, Options, Equities
Posts: 19 since May 2013
Thanks Given: 85
Thanks Received: 25


Ron, Kevin & any others,

I read in previous posts that you're trying out Decarley brokerage for your option selling portfolio. It would be marvellous if you could share with us how you find it. I'm looking to move my option selling book from OX too.

Interactive Brokers are out because of their ridiculous margins for FOPs. There aren't that many brokerages willing to accept clients from overseas (Great Britain) so my choice is limited. Much obliged for anything you can tell us!

Reply With Quote
Thanked by:
  #2374 (permalink)
Raven
Huntsville AL/USA
 
Posts: 54 since May 2012
Thanks Given: 80
Thanks Received: 26


Physicsman View Post
Ron, Kevin & any others,

I read in previous posts that you're trying out Decarley brokerage for your option selling portfolio. It would be marvellous if you could share with us how you find it. I'm looking to move my option selling book from OX too.

Interactive Brokers are out because of their ridiculous margins for FOPs. There aren't that many brokerages willing to accept clients from overseas (Great Britain) so my choice is limited. Much obliged for anything you can tell us!

I have been talking with them. I think DeCarley is a good option. I just need to find a good platform to use with them. I am trying out a Demo with the Zaner360 right now. I have not liked it so far but I am just getting into it.

Reply With Quote
  #2375 (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


Raven View Post
I have been talking with them. I think DeCarley is a good option. I just need to find a good platform to use with them. I am trying out a Demo with the Zaner360 right now. I have not liked it so far but I am just getting into it.

I'm curious what you don't like about the Zaner360/OEC platform.

Started this thread Reply With Quote
  #2376 (permalink)
Raven
Huntsville AL/USA
 
Posts: 54 since May 2012
Thanks Given: 80
Thanks Received: 26


ron99 View Post
I'm curious what you don't like about the Zaner360/OEC platform.

Maybe it is just this demo software but I can't even get CL and NG quotes to show up properly. CLTG4 and NGTF4 just show up as 0.0000. I am see ESZ3 and ZBZ3 fine with live data. I can pull up the option chains for those. I placed a couple of ES and ZN option orders just fine. I don't like that I can't see the margin required. It seems extremely difficult to calculate any ROI. I can't find the deltas anywhere.

It is very customizable. Maybe I just have to do some more digging.

Reply With Quote
  #2377 (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


Raven View Post
Maybe it is just this demo software but I can't even get CL and NG quotes to show up properly. CLTG4 and NGTF4 just show up as 0.0000. I am see ESZ3 and ZBZ3 fine with live data. I can pull up the option chains for those. I placed a couple of ES and ZN option orders just fine. I don't like that I can't see the margin required. It seems extremely difficult to calculate any ROI. I can't find the deltas anywhere.

It is very customizable. Maybe I just have to do some more digging.

The symbol for electronic Feb CL is GCLG4. The energies and metals you put a G before the rest of the symbol.

ICE symbols are a little different. Mar KC is KC-MH4. You need the -M in between the symbol and the month.

Coffee options are like this OKC-MF4 C2 for 200 mar call.

Oil options are like this OCLF4 P95 for Jan 95 put.

The letter O goes before the option symbol.

Under tools in the toolbar is symbol lookup. Type in the name of the commodity, ie coffee, to get the symbol.

I have the commodity futures in the Quote panel. I then click on the futures contract and then click on Find Option Chain which I added to the toolbar of the Quote frame. You then have to change the range from Near to Out of the money to see the options we sell.

For a contract like ESH4 that has multiple option months under it you change the Expiration box on the Option Chain frame.

I don't think deltas are available on this platform.

What I find is that there is always something missing every platform. But there are also some things that are on one platform that you can't get anywhere else.

Started this thread Reply With Quote
Thanked by:
  #2378 (permalink)
 
eudamonia's Avatar
 eudamonia 
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


Raven View Post
Maybe it is just this demo software but I can't even get CL and NG quotes to show up properly. CLTG4 and NGTF4 just show up as 0.0000. I am see ESZ3 and ZBZ3 fine with live data. I can pull up the option chains for those. I placed a couple of ES and ZN option orders just fine. I don't like that I can't see the margin required. It seems extremely difficult to calculate any ROI. I can't find the deltas anywhere.

It is very customizable. Maybe I just have to do some more digging.

According to Carley the best way to get the correct quotes pulled up is to type in the product you want rather than the symbol. For example type in Soybeans or Crude Oil. The symbology for the Zaner OEC platform is not very intuitive.

As I mentioned on an earlier page the pros of DeCarley are the customer service from someone who knows a lot about the way we trade and the margins at SPAN rates.

The only negatives are that the learning curve for the platform is higher.

Visit my NexusFi Trade Journal Reply With Quote
  #2379 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,647 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338


eudamonia View Post
According to Carley the best way to get the correct quotes pulled up is to type in the product you want rather than the symbol. For example type in Soybeans or Crude Oil. The symbology for the Zaner OEC platform is not very intuitive.

As I mentioned on an earlier page the pros of DeCarley are the customer service from someone who knows a lot about the way we trade and the margins at SPAN rates.

The only negatives are that the learning curve for the platform is higher.

Just ask Carley for 5 minutes of her time to help you. I'm sure she will get you going. Also, the tutorial videos may be helpful.

Follow me on Twitter Reply With Quote
  #2380 (permalink)
 
eudamonia's Avatar
 eudamonia 
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



kevinkdog View Post
Just ask Carley for 5 minutes of her time to help you. I'm sure she will get you going. Also, the tutorial videos may be helpful.

I have. And I've learned quite a bit about the software. It is still not intuitive.

Visit my NexusFi Trade Journal 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