Selling Options on Futures? - futures io
futures io futures trading



Selling Options on Futures?


Discussion in Options

Updated May 9th 2020 by treydog999
      Top Posters
    1. looks_one ron99 with 2,202 posts (4,385 thanks)
    2. looks_two kevinkdog with 336 posts (391 thanks)
    3. looks_3 SMCJB with 324 posts (654 thanks)
    4. looks_4 rsm005 with 269 posts (203 thanks)
      Best Posters
    1. looks_one ron99 with 2.0 thanks per post
    2. looks_two SMCJB with 2.0 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 1,077,395 views
    2. thumb_up 8,891 thanks given
    3. group 434 followers
    1. forum 7,222 replies
    2. attach_file 787 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Selling Options on Futures?

(login for full post details)
  #6541 (permalink)
westhills california US
 
 
Posts: 90 since May 2015
Thanks: 126 given, 19 received

On Jan 22 i put on EWK3K8 P(-2)2230 and EWK3K8 P(+3)1940 x10 IM. Since I have never experience the drop we realised recently I notice at the very bottom the premium on my position was 2.5 times the maintance margin(MM) requirment. Maybe some one can explain how that is possible please? I thought the idea was to get out before losses mount.

THANKS
BABAK

Reply With Quote
The following user says Thank You to rajab for this post:

Can you help answer these questions
from other members on futures io?
Convert NinjaTrader NT7 indicator to Tradestation EasyLanguage and RADARSCREEN
Platforms and Indicators
Issue meeting order entry conditions
Elite Automated NinjaTrader Trading
Last 5 minutes Label
ThinkOrSwim
Moving average with Lag reduction
NinjaTrader
Linux?
ThinkOrSwim
 
 
(login for full post details)
  #6542 (permalink)
Germany
 
Experience: Intermediate
Platform: TWS
Trading: Options on futures
 
Posts: 155 since Jul 2014
Thanks: 341 given, 142 received


rajab View Post
On Jan 22 i put on EWK3K8 P(-2)2230 and EWK3K8 P(+3)1940 x10 IM. Since I have never experience the drop we realised recently I notice at the very bottom the premium on my position was 2.5 times the maintance margin(MM) requirment. Maybe some one can explain how that is possible please? I thought the idea was to get out before losses mount.

THANKS
BABAK

I am just speculating:

- I have a ES spread position open at Zaners, an they increased the margin to 100%. Maybe your margin was also increased.
- also by close of the market yesterday it calmed down. Maybe they only calculate a possible margin call b end of the day.

I would say: it depends on your broker. IF you have a contact person I would ask directly.

Reply With Quote
 
(login for full post details)
  #6543 (permalink)
Germany
 
Experience: Intermediate
Platform: TWS
Trading: Options on futures
 
Posts: 155 since Jul 2014
Thanks: 341 given, 142 received



ron99 View Post
The ES spread strategy I have been trading made it through this extreme test. I did not exit any positions. As I write this I have made back 90% of what I lost yesterday.

I will be adding more cash excess because this was too close for comfort. I'm going from 4xIM to 5xIM. 80% cash instead of 75% cash.


This was a good test of your strategy yesterday

I have a EW3J8 P2250(2)/P2000(3) open at Zaners with 4xIM and it was quite under pressure, but with still some room left.
(Since this account is at Zaners in the US, I will not be able to increase cash there in a short time.)

Reply With Quote
 
(login for full post details)
  #6544 (permalink)
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
 
Posts: 3,043 since Jul 2011
Thanks: 945 given, 5,624 received


rajab View Post
On Jan 22 i put on EWK3K8 P(-2)2230 and EWK3K8 P(+3)1940 x10 IM. Since I have never experience the drop we realised recently I notice at the very bottom the premium on my position was 2.5 times the maintance margin(MM) requirment. Maybe some one can explain how that is possible please? I thought the idea was to get out before losses mount.

THANKS
BABAK

That's normal during an event like this week.

With 10xIM you never came close to a margin call.

Reply With Quote
 
(login for full post details)
  #6545 (permalink)
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
 
Posts: 3,043 since Jul 2011
Thanks: 945 given, 5,624 received


manuel999 View Post
I am just speculating:

- I have a ES spread position open at Zaners, an they increased the margin to 100%. Maybe your margin was also increased.

That increase in ES margin was for day trading. Not for options.

Day traders have lower margin than 100% on normal days.

Reply With Quote
The following user says Thank You to ron99 for this post:
 
(login for full post details)
  #6546 (permalink)
Germany
 
Experience: Intermediate
Platform: TWS
Trading: Options on futures
 
Posts: 155 since Jul 2014
Thanks: 341 given, 142 received


ron99 View Post
That's normal during an event like this week.

With 10xIM you never came close to a margin call.

Do you know when the Margin call calculation is done? On a continous basis, or by the end of the day?

Yesterday I noticed at Zaner the price of the spread went up and down quickly at times, wide differences from one second to the next.
If you overstep your margin for a short time only, will you get a margin call already?

Reply With Quote
 
(login for full post details)
  #6547 (permalink)
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: Zaner360, TWS, Vantage
Broker: DeCarley, IAB, RJO
Trading: Commodities
 
Posts: 1,637 since Nov 2014
Thanks: 2,663 given, 2,209 received


manuel999 View Post
This was a good test of your strategy yesterday

I have a EW3J8 P2250(2)/P2000(3) open at Zaners with 4xIM and it was quite under pressure, but with still some room left.
(Since this account is at Zaners in the US, I will not be able to increase cash there in a short time.)

I have an account with DeCarley, but send my money to a British bank in Euro. This works very fast, and wiring the money is free of charge.

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
(login for full post details)
  #6548 (permalink)
Germany
 
Experience: Intermediate
Platform: TWS
Trading: Options on futures
 
Posts: 155 since Jul 2014
Thanks: 341 given, 142 received


myrrdin View Post
I have an account with DeCarley, but send my money to a British bank in Euro. This works very fast, and wiring the money is free of charge.

Best regards, Myrrdin

Thanks. I was not aware of it that works. I send it directly to the US previously.
My main account with IB, but they refuse to send money to another broker, it seems.

Reply With Quote
 
(login for full post details)
  #6549 (permalink)
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: Zaner360, TWS, Vantage
Broker: DeCarley, IAB, RJO
Trading: Commodities
 
Posts: 1,637 since Nov 2014
Thanks: 2,663 given, 2,209 received


manuel999 View Post
Thanks. I was not aware of it that works. I send it directly to the US previously.
My main account with IB, but they refuse to send money to another broker, it seems.

I also hold an account with IB. The Money is sent to a bank in Frankfurt in Euro.

I never tried a direct money transfer from one broker to another.

Best regards, Myrrdin

Reply With Quote
The following user says Thank You to myrrdin for this post:
 
(login for full post details)
  #6550 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: XTrader and Cloud TT
Broker: Advantage Futures
Trading: Energy
 
Posts: 3,463 since Dec 2013
Thanks: 2,767 given, 6,516 received



manuel999 View Post
Do you know when the Margin call calculation is done? On a continous basis, or by the end of the day?

The exchange calculates margins once a day, using settlement prices, although there have been very rare days in the past where they did have intra-day margin calls (to the FCMs) as well.

It gets tricky as exchange margins, are minimum margins, and as such brokers can increase them at will. Not only do IB have higher than minimum margins, but I believe they also calculate them real time. So not only will they not allow you to enter positions if you don't have enough margin, but they will also auto-liquidate you intra-day. Hence policies on this vary FCM to FCM.

Reply With Quote
The following 4 users say Thank You to SMCJB for this post:


futures io Trading Community Traders Hideout Options > Selling Options on Futures?


May 9, 2020


Upcoming Webinars and Events
 

Free BloodHound Licenses for everyone!

June
 

Every journal equals ten meals for the hungry

June
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
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.
no new posts