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?

  #3461 (permalink)
uuu1965
Riga Latvia
 
Posts: 107 since Jan 2013
Thanks Given: 441
Thanks Received: 72


mixpol View Post
vola is mega up

Did you mean that vol increase "eat up" all gain from futures move in my direction?

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
Ninja Mobile Trader VPS (ninjamobiletrader.com)
Trading Reviews and Vendors
Exit Strategy
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Deepmoney LLM
Elite Quantitative GenAI/LLM
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
60 thanks
Funded Trader platforms
43 thanks
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #3462 (permalink)
mixpol
Kazan russia
 
Posts: 31 since Dec 2013
Thanks Given: 2
Thanks Received: 5


uuu1965 View Post
Did you mean that vol increase "eat up" all gain from futures move in my direction?

exactly!! skew is working

Reply With Quote
  #3463 (permalink)
 trelum 
SLC, UT
 
Experience: Intermediate
Platform: TOS
Trading: Futures Options on ES, CL
Posts: 4 since Oct 2010
Thanks Given: 7
Thanks Received: 4


For closing trades that go against you, when do most of you get out? Do you look at the margin requirement during the day or wait until after the close? I get that there are probably arguments to be made both ways but I'm curious how most of you are managing it. Cordier's book talks about some people preferring to wait until the exit conditions are met at the close so that hiccups in the intra-day don't force you out early. Obviously the trade-off to this is when the trade continues to go against you.

I've been watching my positions and placing orders during the day this first little while, but now starting to use the awesome XLS-SPAN by DudeTooth and wondering if it might be a little easier to just check and manage trades each evening after I can download the risk arrays for that day and track the positions there.

I know this was discussed a little bit in the past at least far as exiting losing trades, but I can't find the post.

Reply With Quote
  #3464 (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


trelum View Post
For closing trades that go against you, when do most of you get out? Do you look at the margin requirement during the day or wait until after the close? I get that there are probably arguments to be made both ways but I'm curious how most of you are managing it. Cordier's book talks about some people preferring to wait until the exit conditions are met at the close so that hiccups in the intra-day don't force you out early. Obviously the trade-off to this is when the trade continues to go against you.

I've been watching my positions and placing orders during the day this first little while, but now starting to use the awesome XLS-SPAN by DudeTooth and wondering if it might be a little easier to just check and manage trades each evening after I can download the risk arrays for that day and track the positions there.

I know this was discussed a little bit in the past at least far as exiting losing trades, but I can't find the post.

I never look at margin requirement changes during the day. Like you said it could reverse.

During the day I am watching the change in premium price.

But if a position is going against me I look at the news to see why it is doing that. If it is a long term fundamental change then I may get out. But that depends on DTE, historical commodity volatility, distance option strike is from futures, spec position on DCOT reports, etc.

Started this thread Reply With Quote
  #3465 (permalink)
 thinktrader 
SINGAPORE
 
Experience: Intermediate
Platform: TDAmeritrade
Trading: Crude Oil and ES
Posts: 2 since May 2014
Thanks Given: 1
Thanks Received: 0

Hi I am relatively new to this Forum but saw some comments that there is a SPAN excel worksheet made available in this Forum.

Can anyone be kind enough to point me to where I can download this excel spreadsheet and provide some comments or direct me on how to use the spreadsheet.

Thanks for any help available.

Reply With Quote
  #3466 (permalink)
MGBRoadster
Lancashire UK
 
Posts: 52 since Jan 2013
Thanks Given: 42
Thanks Received: 32


thinktrader View Post
Hi I am relatively new to this Forum but saw some comments that there is a SPAN excel worksheet made available in this Forum.

Can anyone be kind enough to point me to where I can download this excel spreadsheet and provide some comments or direct me on how to use the spreadsheet.

Thanks for any help available.

There's a thread here:


Reply With Quote
  #3467 (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

For those who are experienced with the short strangle. After a short strangle is sold ( a far out of the money put and call) generally is it good to make adjustments or just monitor for conditions that will require an exit from a portion or all of the strangle? Does maintenance of delta within a certain range by buying or selling work well??

Reply With Quote
  #3468 (permalink)
 effective 
Richland WA/USA
 
Experience: Intermediate
Platform: tws, tos
Trading: RUT, GC, CL
Posts: 38 since Mar 2013
Thanks Given: 10
Thanks Received: 20

FREE WEBINAR

Andrew GioVinazzi, COO of Option Pit will discuss how to trade calendar spreads and time spreads.
starts in 10 min
https://traderplanet.webex.com/traderplanet/onstage/g.php?t=a&d=663182633&utm_source=Andrew+at+Trader+Planet&utm_campaign=ATG1&utm_medium=email

Reply With Quote
  #3469 (permalink)
BlueRoo
Brisbane, Queensland, Australia
 
Posts: 121 since Aug 2013
Thanks Given: 75
Thanks Received: 97


datahogg View Post
For those who are experienced with the short strangle. After a short strangle is sold ( a far out of the money put and call) generally is it good to make adjustments or just monitor for conditions that will require an exit from a portion or all of the strangle? Does maintenance of delta within a certain range by buying or selling work well??

DataHogg,

I sell about 4 to 5 of these each month. I look for an accumulation or distribution price action to justify even considering the trade or at the least slow moving trend action. After that I trade time, the shorter the better for me. But definitely a minimum of 28 DTE. Next it is probability, over 90% please. And last I look for some volatility to give me an adequate return for risk.

I manage my strangles aggressively. First by trading the futures every few days when there is an opportunity to scalp. This provides a buffer and some padding or extra profit.

But then when things don't go to plan I try to move quickly. So here is an example Soyabeans SQ14. I sold 1600 and 1260 at 65 DTE. We know what has happened recently in SQ14 with it last closing near 12.36.

So what did I do...well I saw the distribution pattern was ending and when it cross below the 75dma I sold 1460. Then when it confirmed the lower high falling below 1340 I sold 1420. Then when it broke below 1300 which I had believed would hold I sold 1320. And finally when it broke below 1265 I sold 1300 buying back the 1660 puts. So now the trade is all calls.

There are still 10 DTE. So the game is not finished.

What I am discovering through a few of my trading buddies is that I need to learn to use the greeks more to manage my trades and just selling options is not the only solution and that had I purchased some deep OTM puts as part of this campaign I might have come through further ahead.

Cheers,
BlurRoo

Reply With Quote
Thanked by:
  #3470 (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



BlueRoo View Post
DataHogg,

.

I manage my strangles aggressively. First by trading the futures every few days when there is an opportunity to scalp. This provides a buffer and some padding or extra profit.

Cheers,
BlurRoo


When trading the futures how does this relate to the strangle? Also sounds like you move a short put/call when it is
threatened?

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