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Selling Options on Futures?


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Selling Options on Futures?

  #4141 (permalink)
 dmh24 
Denver, CO
 
Experience: Advanced
Platform: SierraChart
Broker: Optimus, Rithmic
Trading: ES
Posts: 67 since Sep 2011
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trader77 View Post
Does anyone here use Interactive Brokers for futures options?

i still do

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  #4142 (permalink)
Blaine
Springfield Missouri
 
Posts: 8 since May 2014
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dmh24 View Post
i still do

I was trading a lot of ES until they changed the margin. What kind of margins are you seeing?
I can't get the margin calculator to work lately.

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  #4143 (permalink)
 dmh24 
Denver, CO
 
Experience: Advanced
Platform: SierraChart
Broker: Optimus, Rithmic
Trading: ES
Posts: 67 since Sep 2011
Thanks Given: 6
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Blaine View Post
I was trading a lot of ES until they changed the margin. What kind of margins are you seeing?
I can't get the margin calculator to work lately.

what kind of deltas? to try staying on topic with stuff like Ron suggests (ballpark), first thing outta my butt:

a July 17 1750 put sold for 5 pts (currently at ~5.2 delta 23% IV): 3593 / 2874 margin per contract on my standard margin acct. 10 contracts incurs $1.33 fee a day

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  #4144 (permalink)
Blaine
Springfield Missouri
 
Posts: 8 since May 2014
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dmh24 View Post
what kind of deltas? to try staying on topic with stuff like Ron suggests (ballpark), first thing outta my butt:

a July 17 1750 put sold for 5 pts (currently at ~5.2 delta 23% IV): 3593 / 2874 margin per contract on my standard margin acct. 10 contracts incurs $1.33 fee a day

I'm was trading my ES in an IRA. I think it is worse for the IRA. I'm thinking about moving part of my funds to Trade Station. Have you or anyone tried them trading FOPs within an IRA? I have heard of ones talk about them but I would like to know how it has worked out with them trading FOPs.

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  #4145 (permalink)
 dmh24 
Denver, CO
 
Experience: Advanced
Platform: SierraChart
Broker: Optimus, Rithmic
Trading: ES
Posts: 67 since Sep 2011
Thanks Given: 6
Thanks Received: 34


Blaine View Post
I'm was trading my ES in an IRA. I think it is worse for the IRA. I'm thinking about moving part of my funds to Trade Station. Have you or anyone tried them trading FOPs within an IRA? I have heard of ones talk about them but I would like to know how it has worked out with them trading FOPs.

ah killed w/ trading futures out of an IRA, see

that would explain no margin calcs - it doesnt show for instruments w/o trading permission

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  #4146 (permalink)
Blaine
Springfield Missouri
 
Posts: 8 since May 2014
Thanks Given: 1
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dmh24 View Post
ah killed w/ trading futures out of an IRA, see

that would explain no margin calcs - it doesnt show for instruments w/o trading permission

Thanks a lot for posting the thread. Very good information in there.

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  #4147 (permalink)
 rsm005 
vancouver BC/Canada
 
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
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Can't seem to make heads/tails on the price of oil.

It looks like the futures market is completely disconnected from the physical market. We're still awash in oil but prices have been slowly rising, reaching a point where shale oil producers are looking to get back into the game. I'm taking a wait and see approach but looking at Puts/Calls in July for ~10c a contract.

Question: In markets like this, where prices seem to defy fundamentals, do you just sit it out? If not do you follow the pricing or the fundamentals?

Thanks
/rsm005/

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  #4148 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
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rsm005 View Post
Can't seem to make heads/tails on the price of oil.

It looks like the futures market is completely disconnected from the physical market. We're still awash in oil but prices have been slowly rising, reaching a point where shale oil producers are looking to get back into the game. I'm taking a wait and see approach but looking at Puts/Calls in July for ~10c a contract.

Question: In markets like this, where prices seem to defy fundamentals, do you just sit it out? If not do you follow the pricing or the fundamentals?

Thanks
/rsm005/

According to my experience, there is a good place to sell options when prices seem to defy fundamentals. I sold the CLQ C80 two days ago.

Best regards, Myrrdin

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  #4149 (permalink)
 
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 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: 5,049 since Dec 2013
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rsm005 View Post
Can't seem to make heads/tails on the price of oil.

It looks like the futures market is completely disconnected from the physical market. We're still awash in oil but prices have been slowly rising, reaching a point where shale oil producers are looking to get back into the game. I'm taking a wait and see approach but looking at Puts/Calls in July for ~10c a contract.

Question: In markets like this, where prices seem to defy fundamentals, do you just sit it out? If not do you follow the pricing or the fundamentals?

Thanks
/rsm005/

@ron99 raised similair issues in this crude thread here.

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  #4150 (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
Can't seem to make heads/tails on the price of oil.

It looks like the futures market is completely disconnected from the physical market. We're still awash in oil but prices have been slowly rising, reaching a point where shale oil producers are looking to get back into the game. I'm taking a wait and see approach but looking at Puts/Calls in July for ~10c a contract.

Question: In markets like this, where prices seem to defy fundamentals, do you just sit it out? If not do you follow the pricing or the fundamentals?

Thanks
/rsm005/

With market conditions like that it would be prudent to sit out. It just all depends on your risk tolerance.

If it is 50-50 chance of going up or down, and possibly large moves, that is when you either sit out or you are extremely careful.

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