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?

  #3161 (permalink)
 datahogg 
Knoxville Tennessee USA
 
Experience: Intermediate
Platform: TOS
Trading: ES, NQ, CL, /6E futures options.
Posts: 346 since Oct 2012
Thanks Given: 135
Thanks Received: 154


New Level View Post
Well I haven't made a real money trade yet but after reading this whole thread I feel like I've been in the trenches with you guys for a while. Thanks to all who have contributed! I found options through tasty trade and then found this thread and I've been consuming everything I can find on options and paper trading ever since. I'll be opening an account with DeCarley soon and plan on keeping things very small and manageable until I have some experience under my belt. As I progress I hope to have some substance to add to the conversation here. I noticed that DeCarley has several levels of service/commissions , from full service at $35 to self directed Pro at $7, as a new trader would a higher service level be worth it?

These are excessively high commissions.

Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Futures True Range Report
The Elite Circle
NexusFi Journal Challenge - April 2024
Feedback and Announcements
Build trailing stop for micro index(s)
Psychology and Money Management
Are there any eval firms that allow you to sink to your …
Traders Hideout
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
 
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
37 thanks
GFIs1 1 DAX trade per day journal
22 thanks
NexusFi site changelog and issues/problem reporting
22 thanks
The Program
20 thanks
  #3162 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,647 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338


New Level View Post
Well I haven't made a real money trade yet but after reading this whole thread I feel like I've been in the trenches with you guys for a while. Thanks to all who have contributed! I found options through tasty trade and then found this thread and I've been consuming everything I can find on options and paper trading ever since. I'll be opening an account with DeCarley soon and plan on keeping things very small and manageable until I have some experience under my belt. As I progress I hope to have some substance to add to the conversation here. I noticed that DeCarley has several levels of service/commissions , from full service at $35 to self directed Pro at $7, as a new trader would a higher service level be worth it?

I suggest you talk to Carley directly to get commission rates.There are a lot of options with different FCMs and different platforms, many of which will impact your cost.

Something else to consider is how they charge commissions. Some brokers charge all at the beginning, and some charge both for entry and exit. That may be an important consideration if you exit before expiration.

Another issue to investigate is how "option selling friendly" the broker is. Some deep discount brokers I found were dirt cheap, but did not want option sellers (they felt it was too much risk). Not many brokers are accomodating to option selling.

I can tell you from my personal experience that DeCarley overall prices are very reasonable. Service has been world class. That alone is worth it, in my opinion.

Follow me on Twitter Reply With Quote
Thanked by:
  #3163 (permalink)
 
Cogito ergo sum's Avatar
 Cogito ergo sum 
Amsterdam
 
Experience: None
Platform: QuickStrike, CTS
Trading: Derivatives
Posts: 195 since Jul 2010
Thanks Given: 227
Thanks Received: 214



New Level View Post
Well I haven't made a real money trade yet but after reading this whole thread I feel like I've been in the trenches with you guys for a while. Thanks to all who have contributed! I found options through tasty trade and then found this thread and I've been consuming everything I can find on options and paper trading ever since. I'll be opening an account with DeCarley soon and plan on keeping things very small and manageable until I have some experience under my belt. As I progress I hope to have some substance to add to the conversation here. I noticed that DeCarley has several levels of service/commissions , from full service at $35 to self directed Pro at $7, as a new trader would a higher service level be worth it?

If you intend to execute a specific trading system in a live environment (such as selling OTM options) with predetermined rules I personally don't see any real value added to go full service. In addition, a $35 RT commission for a "small account" can destroy your theoretical edge and can negatively skew your returns depending on your strategy and trade size. I recommend that you model your paper trades with both commission structures to see where you stand from a pure financial point of view.

Broker selection is a different discussion altogether.

Reply With Quote
Thanked by:
  #3164 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,647 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338


Cogito ergo sum View Post
If you intend to execute a specific trading system in a live environment (such as selling OTM options) with predetermined rules I personally don't see any real value added to go full service. In addition, a $35 RT commission for a "small account" can destroy your theoretical edge and can negatively skew your returns depending on your strategy and trade size. I recommend that you model your paper trades with both commission structures to see where you stand from a monetary point of view. As for selecting a broker is a completely different discussion alltogether.

Good points. Make sure you don't pay for more than what you need.

Follow me on Twitter Reply With Quote
  #3165 (permalink)
Zero85
NYC +NY/ United States
 
Posts: 33 since Mar 2014
Thanks Given: 13
Thanks Received: 10

Hmm, so things got interesting after Friday's market moving jobs data report. Gold shot up quite a bit, the S&P Index took it a sharp dive, and unrelated to the market, coffee futures skyrockets over $10.00 in a day. Nasdaq was rocked too.

Looks like volatility is back in action, creating some good option selling premium. How are you guys going to play it?

I'm thinking of selling some S&P puts, and perhaps a couple of coffee calls at the very high range, (over 300). Time to make hay fellas!

Reply With Quote
Thanked by:
  #3166 (permalink)
 datahogg 
Knoxville Tennessee USA
 
Experience: Intermediate
Platform: TOS
Trading: ES, NQ, CL, /6E futures options.
Posts: 346 since Oct 2012
Thanks Given: 135
Thanks Received: 154


Zero85 View Post
Hmm, so things got interesting after Friday's market moving jobs data report. Gold shot up quite a bit, the S&P Index took it a sharp dive, and unrelated to the market, coffee futures skyrockets over $10.00 in a day. Nasdaq was rocked too.

Looks like volatility is back in action, creating some good option selling premium. How are you guys going to play it?

I'm thinking of selling some S&P puts, and perhaps a couple of coffee calls at the very high range, (over 300). Time to make hay fellas!

I sold some NQ NQM4 2810 puts @ $76.00. 76 DTE. Delta=0.022 , IM= 417 (Per TOS).

Reply With Quote
Thanked by:
  #3167 (permalink)
 Stan Dan 
Zug / Switzerland
 
Posts: 67 since Sep 2013


datahogg View Post
I sold some NQ NQM4 2810 puts @ $76.00. 76 DTE. Delta=0.022 , IM= 417 (Per TOS).

And what is your stop loss? Level on the script or how do you define your stop loss when shorting any options?

Reply With Quote
  #3168 (permalink)
 datahogg 
Knoxville Tennessee USA
 
Experience: Intermediate
Platform: TOS
Trading: ES, NQ, CL, /6E futures options.
Posts: 346 since Oct 2012
Thanks Given: 135
Thanks Received: 154


Stan Dan View Post
And what is your stop loss? Level on the script or how do you define your stop loss when shorting any options?

My drop dead stop loss is that given by RON99. But I may make adjustment before that.

Reply With Quote
  #3169 (permalink)
 energetic 
hk
 
Experience: Intermediate
Platform: NinjaTrader
Posts: 55 since Apr 2010
Thanks Given: 23
Thanks Received: 17


kevinkdog View Post
I suggest you talk to Carley directly to get commission rates.There are a lot of options with different FCMs and different platforms, many of which will impact your cost.

Something else to consider is how they charge commissions. Some brokers charge all at the beginning, and some charge both for entry and exit. That may be an important consideration if you exit before expiration.

Another issue to investigate is how "option selling friendly" the broker is. Some deep discount brokers I found were dirt cheap, but did not want option sellers (they felt it was too much risk). Not many brokers are accomodating to option selling.

I can tell you from my personal experience that DeCarley overall prices are very reasonable. Service has been world class. That alone is worth it, in my opinion.

Any option selling friendly broker suggestion ?

Sent from my GT-N7105 using Tapatalk

Reply With Quote
  #3170 (permalink)
 kevinkdog   is a Vendor
 
Posts: 3,647 since Jul 2012
Thanks Given: 1,890
Thanks Received: 7,338



energetic View Post
Any option selling friendly broker suggestion ?

Sent from my GT-N7105 using Tapatalk

I use DeCarley (through Gain) and OptionsExpress. I'm happy with both.

Follow me on Twitter 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