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?

  #4811 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192


SMCJB View Post
12.11am
ESU5 ~ 1914
V Wing Vol looks like its ~ +11
X Wing Vol ~ +8

Seems like there was good volume in both futures and options for the first 4-5 hours but things dieing down now.
Option Bid/Ask now so wide you can't trade anything.
12.58am
ESU5 ~ 1924
V Wing Vol looks like its ~ +12
X Wing Vol ~ +9
For the first time in a while, I'm now short ES Options, V1400P.

Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Build trailing stop for micro index(s)
Psychology and Money Management
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Online prop firm The Funded Trader (TFT) going under?
Traders Hideout
Exit Strategy
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
 
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
NexusFi site changelog and issues/problem reporting
24 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
19 thanks
  #4812 (permalink)
Chubbly
Ottawa
 
Posts: 87 since May 2015
Thanks Given: 67
Thanks Received: 88

Warning to IB account holders

Interactive Brokers Bulletin Board

To CFE,ECBOT,GLOBEX,NYBOT,NYMEX,NYSELIFFE traders:
Mon Aug 24 08:40:32 2015 EST
In light of the notable volatility in global markets, we are temporarily suspending intra-day margin release. Please monitor your accounts accordingly to ensure margin compliance. Any account not in margin compliance will, as always, become subject to IB-initiated liquidation.

Reply With Quote
  #4813 (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



SMCJB View Post
Seems like there was good volume in both futures and options for the first 4-5 hours but things dieing down now.
Option Bid/Ask now so wide you can't trade anything.
12.58am
ESU5 ~ 1924
V Wing Vol looks like its ~ +12
X Wing Vol ~ +9
For the first time in a while, I'm now short ES Options, V1400P.

I would have waited for after the Monday 7-10 am selling wave before adding new shorts. But of course I could have been wrong.

It seemed like the selling was in waves as each part of the world started trading. Down to open plus Chinese market down. Then a rebound. Then another drop when EU started trading then a rebound. Now down big when US is fully trading and people are being forced out. I'm guessing we won't settle at -100 ES but this might be big enough drop to keep the selling going for another day.

Looks like ES hit a circuit breaker now.

The worst part is that this move is so being overdone by the market. -12% in 4 days with no major news?

Started this thread Reply With Quote
Thanked by:
  #4814 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192


SMCJB View Post
Seems like there was good volume in both futures and options for the first 4-5 hours but things dieing down now.
Option Bid/Ask now so wide you can't trade anything.
12.58am
ESU5 ~ 1924
V Wing Vol looks like its ~ +12
X Wing Vol ~ +9
For the first time in a while, I'm now short ES Options, V1400P.

When ES was down on its lows ~ 1830/1840 ~ V wing vol was +20 ish and X wing Vol was +17 ish.
With ES back to ~ 1900, V wing vol is +12 ish and X wing Vol was +10 ish.

Reply With Quote
Thanked by:
  #4815 (permalink)
Chubbly
Ottawa
 
Posts: 87 since May 2015
Thanks Given: 67
Thanks Received: 88

VIX hit a high of 53. The only time it has been higher was the 2008 meltdown.

Was the trigger the Fed minutes being or the Yuan devaluation?

Reply With Quote
  #4816 (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


Chubbly View Post
VIX hit a high of 53. The only time it has been higher was the 2008 meltdown.

Was the trigger the Fed minutes being or the Yuan devaluation?

Asian market crash.

Started this thread Reply With Quote
  #4817 (permalink)
uuu1965
Riga Latvia
 
Posts: 107 since Jan 2013
Thanks Given: 441
Thanks Received: 72


ron99 View Post
I would have waited for after the Monday 7-10 am selling wave before adding new shorts. But of course I could have been wrong.

It seemed like the selling was in waves as each part of the world started trading. Down to open plus Chinese market down. Then a rebound. Then another drop when EU started trading then a rebound. Now down big when US is fully trading and people are being forced out. I'm guessing we won't settle at -100 ES but this might be big enough drop to keep the selling going for another day.

Looks like ES hit a circuit breaker now.

The worst part is that this move is so being overdone by the market. -12% in 4 days with no major news?

I think there are humans emotion involved (gread, stinginess etc), and this one is measureless...

Reply With Quote
Thanked by:
  #4818 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192


Chubbly View Post
VIX hit a high of 53. The only time it has been higher was the 2008 meltdown.

Was the trigger the Fed minutes being or the Yuan devaluation?


ron99 View Post
Asian market crash.

Agree. It was weak on the open but it seemed to break when Asia went South.

Reply With Quote
  #4819 (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

My IMx3 spreads have hit exit point. I will exit when I see market start to drop again.

My IMx4 spreads are not at exit point at 10:15 am (ignoring craziness from 9:10 am to 9:40 am). But drawdown is 47%. I will probably exit these today too.

I suspect margin calls tomorrow will send another wave of selling.

After this is over we need to research ways to limit losses better. Selling futures? Just getting out at any sign of trouble? Find another way to invest money

I am seriously troubled by what the markets have become because of algo trading.

Started this thread Reply With Quote
  #4820 (permalink)
 grausch 
Luxembourg, Luxembourg
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Stocks
Posts: 494 since May 2012
Thanks Given: 1,731
Thanks Received: 1,159



ron99 View Post
The worst part is that this move is so being overdone by the market. -12% in 4 days with no major news?

I believe the appropriate quote is "The market can stay irrational for longer than you can stay solvent."

Brutal month so far - I wonder how much the Chinese stock market was driven by Chinese housewives buying stocks on insane margin? Seems very similar to the GBP/JPY carry-trade unwind with the prior crisis. Lots of people lost their shirts during that move.

Reply With Quote
Thanked by:




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