Selling Options on Futures?

August 20th, 2014, 06:42 PM

Hi All,

Been doing some web research for information and reference material on old and new crop information to improve my knowledge. Wondering if anyone has any links to good material they might like to share...

Thanks in Advance...BlueRoo

August 20th, 2014, 06:56 PM

BlueRoo

Hi All,

Been doing some web research for information and reference material on old and new crop information to improve my knowledge. Wondering if anyone has any links to good material they might like to share...

Thanks in Advance...BlueRoo

The Hightower reports available at OX give good information.

August 21st, 2014, 01:10 AM

ron99

The Hightower reports available at OX give good information.

Thanks Ron, I do get these thru Carley. What I have been trying to do is build, say a 300 word summary of a commodity. For example, when, where is planting, harvest, major suppliers, general production, consumption numbers, influencing factors etc, I have started one for grains and adding to it as I find stuff out....also for meat...trying to self educate myself...

August 21st, 2014, 11:23 AM

^^

This one is pretty good for learning about the big picture stories affecting hogs and cattle (I only use it for hogs).

Home

It's free and can be delivered daily via a pdf to your email address. I can't remember if you sign up on their site or the CME's site (a sponsor of the report).

Agrimoney.com also has some good material. A lot of it is re-writes of the topic of the day, but they do a decent job with the softs and they conduct a lot of interviews with people from big banks and brokerages. It's interesting to know what they're thinking, or at least what they're telling their clients.

August 21st, 2014, 06:15 PM

Can someone check if this chart is more or less ok?
thinkorswim Sharing

If it works this could be a free source for seasonal charts.

Here is the code that was given to me. I know nothing about TOS codes, just copied and pasted to add more years.

plot LastYear = close[252];
plot TwoYearsAgo = close [2 * 252];
plot ThreeYearsAgo = close [3 * 252];
plot FourYearsAgo = close [4 *252];
plot FiveYearsAgo = close [5 * 252];
plot CombinedAvg = (LastYear + TwoYearsAgo +ThreeYearsAgo + fourYearsAgo + fiveYearsAgo) / 5;
CombinedAvg.SetDefaultColor(color.LIME);

def today = GetLastDay() == GetDay();

AddChartBubble(today, LastYear, "LY", Color.white);
AddChartBubble(today, TwoYearsAgo, "2Ya", Color.white);
AddChartBubble(today, ThreeYearsAgo, "3Ya", Color.white);
AddChartBubble(today, FourYearsAgo, "4Ya", Color.white);
AddChartBubble(today, FiveYearsAgo, "5Ya", Color.white);

August 21st, 2014, 08:59 PM

meyer99

Can someone check if this chart is more or less ok?
thinkorswim Sharing

If it works this could be a free source for seasonal charts.

Here is the code that was given to me. I know nothing about TOS codes, just copied and pasted to add more years.

You can also select seasonality type chart in TOS. I remember checking it for lean hogs, looked ok. The only thing is that there are gaps as the front month being switched.

August 21st, 2014, 10:58 PM

meyer99

Can someone check if this chart is more or less ok?

Meyer,

Here is the chart I produce from future prices data and using vba code. The chart is normalised meaning that the each line is a comparative proportional percentage. This allows swing comparison in terms of percentage move.

Your chart looks pretty okay to me.

BlueRoo

August 21st, 2014, 11:31 PM

ron99

Made first trades of the year.

Sold 195 SBh3 16.00 puts for 0.02. Margin 113 cash excess 226. 44 DTE. 5.51 fees. ROI 3.3% per month.

Sold 1 RBg3 2.30 put for 0.0013. It was bid there 1 time. Settled at 0.0008. Futures are way higher today. Margin 751 (OX 20% higher than SPAN) cash excess 1502. 27 DTE. 5.21 fees. ROI 2.4% per month.

Trade in IRA. Sold 1 HOg3 2.35 put for 0.0003. It was bid there 1 time. Settled at 0.0001. Futures are higher today. Margin 108 (OX 20% higher than SPAN) cash excess 216. 27 DTE. 5.21 fees. ROI 2.5% per month.

Trade in IRAs. Sold 65 CLh3 65 put for 0.03. It was bid there 204 times. I would have done more but someone stole the rest. I wish OX had group trades on options. Settled at 0.03. Futures are higher today. Margin 199 (OX 20% higher than SPAN) cash excess 398. 447 DTE. 5.21 fees. ROI 2.8% per month.

Sold 2 HGh3 3.00 put for 0.0025. It was bid there 2 times. Settled at 0.0010. Futures are higher today. Margin 356 cash excess 1068. 55 DTE. 5.21 fees. ROI 2.9% per month.

I may have mentioned this earlier, but my ROI% is assuming the margin stays the same to expiration. Which of course normally it doesn't. I then take take the margin and cash excess money that is no longer needed for that contract and add new contracts. I also reduce the 2X extra when the contract is close to expiration, down to 1X if <10 and maybe down to 0 if the contract is really far out of the money (this is where having your trades in spreadsheets and on a database can help keep track of these different levels of excess for certain contracts). So the actual ROI% is higher.

Thanks Ron and everyone for such a great thread, I am very lucky to find here.
Ron, I have a quick question, I remembered you said you sell option in IRA with OX, but I called their customer service, they said I can't sell option in an IRA acct, am I missing something here?
I am with IB now, and am thinking to open an IRA acct with OX after reading this thread so far.
Thanks!

ddu

August 22nd, 2014, 08:36 AM

daydayup8

Thanks Ron and everyone for such a great thread, I am very lucky to find here.
Ron, I have a quick question, I remembered you said you sell option in IRA with OX, but I called their customer service, they said I can't sell option in an IRA acct, am I missing something here?
I am with IB now, and am thinking to open an IRA acct with OX after reading this thread so far.
Thanks!

ddu

Somewhere in this thread we discussed that after Schwab bought OX they decided to not allow any new IRA accounts to trade futures. That was the start of the downfall of OX. I no longer trade there. I moved my IRA accounts to DeCarley Trading.

FYI do not use Millennium Trust as the custodian of your IRAs. Their customer service is horrible.

August 22nd, 2014, 09:18 AM

ddu-

I have 2 IRAs that I trade futures options in. To do that, as Ron said, you have to open up a self-directed IRA with a company that allows the trading of futures options. This company also must be set up with the broker of your choice because your IRA trustee is the one that opens the account for you.

The IRA Trustee / Broker options are few and I don't think you can do that with OX any more, although that might have changed in the past few months.

I have had excellent customer service from AdvantaIRA out of their Fort Myers office. You should contact them and tell them what you are wanting to do and ask what brokers they work with. My trading accounts are through DeCarley Trading as the IB and we are with Open E Cry and Crossland. Crossland was just bought out by Wedbush Securities, so my statement now says Wedbush Securities.

Carley Garner at DeCarley does an OUTSTANDING JOB. For those of us who sell DOTM options, these brokerages do a fairly good job, but they aren't able to calculate real time margins very well. As such, they err on the side of conservatism and if you have a lot of positions on you may have a little bit of hassle adding positions. Carley will smooth all that out for you.

I have no connection with any of these people or companies other than being a happy customer.

mu2pilot

Selling Options on Futures?

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Selling Options on Futures?