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?

  #5211 (permalink)
Adam82
New York NY USA
 
Posts: 15 since Jan 2016
Thanks Given: 5
Thanks Received: 21


rajab View Post
Any one selling puts on ES?
Just wondering if one should wait till ES tests the AUG lows?

I had a bunch of short es 1550 puts for Feb, sold at around $3.
when it rallied to $6, i got nervous and covered by the end of the day at around $4.50 average. Sucks because theres like 23 trading days or so, and I know I should've stuck with the trade, but my size was too large…

U live and learn.

by the way, hello to all. Been following the forum for awhile but just signed up.

I follow Tastytrade, and like to sell puts on various stocks and ES with 45-55 DTE as far out as I can and still collect decent premium. Not as far as Karen the Supertrader, but I do like how she goes into a trade.. First , just assume the market is 10% lower- and then go even further out from there to sell premium...

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
New Micros: Ultra 10-Year & Ultra T-Bond -- Live Now
Treasury Notes and Bonds
Are there any eval firms that allow you to sink to your …
Traders Hideout
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
Better Renko Gaps
The Elite Circle
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 …
61 thanks
Funded Trader platforms
38 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
GFIs1 1 DAX trade per day journal
19 thanks
The Program
18 thanks
  #5212 (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


rsm005 View Post
Genuinely wondering if the fundamental picture of the economy, both US and abroad, has changed.

/rsm005/

Yep.

Quoting 
Prospect of the Islamic Republic (Iran) pumping an additional 500,000 barrels a day sends stock markets in Dubai and Saudi Arabia into tailspin

Stock markets across the Middle East collapsed as the lifting of economic sanctions against Iran threatened to unleash a fresh wave of oil onto global markets that are already drowning in excess supply.

All seven stock markets in Gulf states tumbled as panic gripped traders. Dubai's DFM General Index slumped 4.8pc to 2,682.56, while Saudi Arabia's Tadawul All Share Index collapsed by 7pc to 5,409.35, its lowest level in almost five years.

https://uk.finance.yahoo.com/news/iran-sanctions-middle-east-stock-102835505.html

Started this thread Reply With Quote
Thanked by:
  #5213 (permalink)
 rsm005 
vancouver BC/Canada
 
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
Thanks Given: 13
Thanks Received: 205


This is something I just don't understand. Why would the collapse in the price of oil affect the market overall?

- The US economy is very diverse.
- Lower energy costs lead to lower transport and production costs.
- Sure some companies are hurt but a majority benefit, especially consumer focused businesses because lower energy costs translate to more money for people to spend.
- There's usually a lagging effect on energy prices but this has been happening for a while now.

What am I missing?

/rsm005/

Reply With Quote
  #5214 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


rsm005 View Post
This is something I just don't understand. Why would the collapse in the price of oil affect the market overall?

- The US economy is very diverse.
- Lower energy costs lead to lower transport and production costs.
- Sure some companies are hurt but a majority benefit, especially consumer focused businesses because lower energy costs translate to more money for people to spend.
- There's usually a lagging effect on energy prices but this has been happening for a while now.

What am I missing?

/rsm005/

Two issues I am thinking about:

I assume that oil producing countries hold a lot of stocks. They might sell now to get some cash.

Oil producing companies in the US probably needed a lot of money from banks. Some of these companies might get into trouble, and not pay back. Thus, also banks get into trouble.

But I do not have any figures in this regard.

Best regards, Myrrdin

Reply With Quote
  #5215 (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

Almost 9ET on MLK day US markets closed today.
ES currently trading approximately unchanged (1873) but has had a 30 point range overnight (1860-1890)

Reply With Quote
  #5216 (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


rsm005 View Post
This is something I just don't understand. Why would the collapse in the price of oil affect the market overall?

- The US economy is very diverse.
- Lower energy costs lead to lower transport and production costs.
- Sure some companies are hurt but a majority benefit, especially consumer focused businesses because lower energy costs translate to more money for people to spend.
- There's usually a lagging effect on energy prices but this has been happening for a while now.

What am I missing?

/rsm005/

You also have all of the related industries affected by lower oil. Railroads transporting less oil. Steel for oil drilling. Equipment used by oil industry. Housing and construction in oil drilling areas. Banks lending to oil and related companies. I'm sure there are more.

This article answers your question very well.
https://www.reuters.com/article/usa-oil-kemp-idUSL8N1522IN
Quoting 
In the United States, businesses engaged in oil and gas extraction and refining spent almost $200 billion on new equipment and structures in 2013, the most recent year for which data are available.

Oil and gas extraction and refining accounted for more than 14 percent of all new capital expenditures in the United States in 2013, according to the U.S. Census Bureau.

Oil and gas drilling and associated services on their own accounted for more than 13 percent of whole-economy capital expenditures ("Annual Capital Expenditures Survey" Table 4a).


Quoting 
The impact is not confined to the United States. Oil and gas projects around the world worth $380 billion have been postponed or cancelled since 2014 according to Wood Mackenzie, an energy consultancy.

Several hundred thousand jobs have been lost at exploration and production companies and oil field services firms.

But these are only the direct spending cuts and job losses. The downturn in oil and gas is rippling all along the supply chain.

The oil and gas industry is not just a major producer of inputs used by other manufacturers, service suppliers and households, it is also a major consumer of raw materials, manufactured items and services itself.


Started this thread Reply With Quote
  #5217 (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


SMCJB View Post
Almost 9ET on MLK day US markets closed today.
ES currently trading approximately unchanged (1873) but has had a 30 point range overnight (1860-1890)


Crude at 29....

Reply With Quote
  #5218 (permalink)
 HardSwap3 
 
Posts: 20 since Jul 2014

I'm a Tastytrade fan too, and am a 30 year veteran of futures and futures options trading. With the very high implied volatility, I've just been shorting puts in 6C (March .685) and CL (March 29.00). I believe both will consolidate and rally over the next few weeks, and love the potential for volatility crush, theta decay, and favorable directional moves.

As to ES, I like short puts here too as a near term directional trade, but the volatility just isn't high enough yet, as it was last August. I think we will see a 1-2 week rally here, but then we are heading much lower, to about 1500.

Reply With Quote
  #5219 (permalink)
 
rleplae's Avatar
 rleplae 
Gits (Hooglede) Belgium
Legendary Market Wizard
 
Experience: Master
Platform: NinjaTrader, Proprietary,
Broker: Ninjabrokerage/IQfeed + Synthetic datafeed
Trading: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
Posts: 3,003 since Sep 2013
Thanks Given: 2,442
Thanks Received: 5,863


Warren534 View Post
I've just been shorting puts in 6C (March .685) .

I hope you have the fact, that there is a rate decision on Wednesday for 6C on your radar ?

Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
  #5220 (permalink)
 HardSwap3 
 
Posts: 20 since Jul 2014



rleplae View Post
I hope you have the fact, that there is a rate decision on Wednesday for 6C on your radar ?

Betach, yes I am aware of it, but it plays no role in my trading.

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