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




 
 

Selling Options on Futures?

 
 Dudetooth 
Steubenville Ohio
 
Experience: Intermediate
Platform: OX, OEC, RJO
Trading: Options on Futures
Posts: 266 since Sep 2012
Thanks Given: 30
Thanks Received: 274


jokertrader View Post
How do i make it work for a diagonal

I can get lets say CLJ6 put spread to work but if i try

CLJ6 33 put -1
CLK6 31 put +1
It doesnt work

For the J6, futures and options month are the same
I do the same for K6 - am i doing something wrong?

any thanks to Dudetooth, Ron for this.. finally i have a backtesting solution (should have joined u guys a while ago.. oh well never too late)

Did you mark both sides of that spread in the S1 column with the same number and select both rows before clicking Track Historic (that is how the spreadsheet knows you want it to be treated as a spread)?


Attached Thumbnails
Click image for larger version

Name:	Capture.JPG
Views:	163
Size:	49.5 KB
ID:	201560  
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Exit Strategy
NinjaTrader
The space time continuum and the dynamics of a financial …
Emini and Emicro Index
Deepmoney LLM
Elite Quantitative GenAI/LLM
Better Renko Gaps
The Elite Circle
Are there any eval firms that allow you to sink to your …
Traders Hideout
 
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
 
 jokertrader 
NYC, NY
 
Experience: Intermediate
Platform: Sierra, TT
Broker: N/A
Trading: Spread Researcher and crypto degen
Posts: 654 since May 2013
Thanks Given: 545
Thanks Received: 360

Have it exactly as you have it - I dont think its giving me what i want
What am i doing wrong?
thanks in advance



Visit my NexusFi Trade Journal
 
 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



jokertrader View Post
Have it exactly as you have it - I dont think its giving me what i want
What am i doing wrong?
thanks in advance

The may 31 put had zero open interest on 20151209. So you can't get margin for that option or when it is included in a spread. Switch to a 30 put.

Started this thread
 
 
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

VIX Outside of `Red Zone'; Indicates No Recession, Goldman Says - Bloomberg Business

Thanked by:
 
 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




Whew....................I'm relieved. I wasn't sure what would happen.

Thanked by:
 
waterbug700
New York
 
Posts: 1 since Jan 2016
Thanks Given: 0
Thanks Received: 0

Hi All,
Just I just registered for this forum specifically to learn more about writing options. Name is Steve, I'm 29, and a novice investor when it comes to options and commodities. I have been building up a modest retirement portfolio of stock equities since 2007.

I am very intrigued by the idea of diversifying and selling premium on futures options. I'm Currently reading Cordier's Complete Guide to Selling Options and came here to watch and learn how you experienced and active traders think and make decisions.

Looking forward to getting getting started and getting to know you fine folks and learning from your experiences as well

Does anyone have any recommendations as far as a Paper Trading platform or tools to track options trade positions?

Thank you all and happy weekend!


-Steve

 
 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


waterbug700 View Post
Hi All,
Just I just registered for this forum specifically to learn more about writing options. Name is Steve, I'm 29, and a novice investor when it comes to options and commodities. I have been building up a modest retirement portfolio of stock equities since 2007.

I am very intrigued by the idea of diversifying and selling premium on futures options. I'm Currently reading Cordier's Complete Guide to Selling Options and came here to watch and learn how you experienced and active traders think and make decisions.

Looking forward to getting getting started and getting to know you fine folks and learning from your experiences as well

Does anyone have any recommendations as far as a Paper Trading platform or tools to track options trade positions?

Thank you all and happy weekend!


-Steve

Welcome Steve.

Starting with this post


I explain how you can historically track options on futures using Dudetooth's excellent Excel spreadsheet.

I made my own Excel sheet to track currently held options in my accounts. It isn't too hard to do.

Started this thread
 
 HardSwap3 
 
Posts: 20 since Jul 2014


HardSwap3 View Post
If you use TOS, or watch tastytrade, high implied volatility would be based on the Implied Volatility Rank or Percentile being at a very high level, say over 75 or 80. This compares Implied Volatility level for an underlying against itself, say over the last 12 months, or some other period.

So to follow up on this, on Thursday 1/28 with CLJ6 at 34.75, implied volatility at 68%, with an IV Rank at 94%, I wrote the following option strangles:

34.5 put and 35 call for 5.93 (essentially a straddle)
29.5 put and 43 call for 1.89
26 put and 46 call for .93

My expectation is that CL will move into a trading range for the next few weeks. If so, implied volatility will decline sharply, IV Rank will get back down towards 50%. Also, time will pass, so both will result in substantial decline in option premiums. With just the choppiness on Friday 1/29, implied volatility fell to 62%, IV Rank declined to 82%, and these positions are already showing good profits.

 
jcrother
LOS ANGELES, UNITED STATES
 
Posts: 1 since Jan 2016
Thanks Given: 0
Thanks Received: 0


Warren534 View Post
So to follow up on this, on Thursday 1/28 with CLJ6 at 34.75, implied volatility at 68%, with an IV Rank at 94%, I wrote the following option strangles:

34.5 put and 35 call for 5.93 (essentially a straddle)
29.5 put and 43 call for 1.89
26 put and 46 call for .93

My expectation is that CL will move into a trading range for the next few weeks. If so, implied volatility will decline sharply, IV Rank will get back down towards 50%. Also, time will pass, so both will result in substantial decline in option premiums. With just the choppiness on Friday 1/29, implied volatility fell to 62%, IV Rank declined to 82%, and these positions are already showing good profits.

Don't see any value in this hindsight trade, should post trades as you enter them, not talk about them after they are in profit.

 
 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



jcrother View Post
Don't see any value in this hindsight trade, should post trades as you enter them, not talk about them after they are in profit.

This is not a trade journal thread where people post trades as they do them.

Really, your first post ever is to criticize another poster?

Started this thread

 



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