Selling Far OTM Options on Futures

NexusFi · 2015-03-20T13:54:58-04:00

I can't imagine that the buying power reduction is "tiny". If I were to sell the SPY 205 put right now for .01 it would be over 3k in buying power reduction. If I owned it why in the world would I tie up that capital for one minute when I can put it to better use? So maybe a better question would be.....if you didn't own it right now would you sell it right now to collect the .10....because by holding it that is basically what you are doing. Your theta decay for the weekend on 3k worth something …

Discussion in Options

Updated March 20, 2015

Selling Far OTM Options on Futures

March 20th, 2015, 01:54 PM

#91 (permalink)

myrrdin

Linz Austria

Elite Member

Experience: Advanced

Platform: TWS

Broker: Interactive Brokers

Trading: Commodities

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Forex37

Hi Myrrdin,

I too was a customer of MAN...., What are the coditions with RJO (can you tell us?)? Is this RJO US or RJO UK via their KYTE setup?

Thanks

I trade with RJO US. Conditions depend - as with most brokers - on the size of the account and on the number of trades per month. RJO is more expensive than IB and has similar prices as MAN Financial. For an option seller, conditions are ok. As a day trader I would prefer a cheaper broker.

Main advantage of RJO: They have excellent reports on fundamentals. Currently I do more trades with deCarley due to their excellent service. But I will keep the RJO account for their reports.

Generally I prefer working with (at least) two brokers to reduce the risk that almost would have hit me at MAN.

Best regards, Myrrdin