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Actually you are using the margin from yesterday but the premium from today. That gives you a false ROI%. Spread premium yesterday was 0.01.
Yesterday the 155-165 spread was 0.03. SPAN Margin was 81. OX would have been 97. ROI% 2.6 if held all 80 DTE. But I'm guessing the 170-180 spread margin is lower than the 155-165 $81 unless futures take off between now and closing.
What are the advantages of selling put options against the futures contracts when compared to
selling options against the index products such as SPX, RUT, and others??
My answer to this is to move away from futures options for now and look at stock plus option to create a married put along the lines of Radioactive trading. The benefit here is a pre-defined 'maximum loss' and an open upside.
I have yesterday purchased USO and the equivilant matching Jan 45 puts.
The total outlay is $45.88 per share with a guarantee of selling at 45 until Jan 2014
This means if price spikes up sharply the stock rises faster than the put declines and allows for the sale of covered calls or ratio call spreads to recoup the 88 cents 'at risk'.
If the SPR is released and there is a sudden decline as speculators dump the futures, then the puts can be rolled down and the profits re-investd in more shares at a lower price ready for the next move up. This would have a compounding effect over time.
IF this proves successful I will keep most of my excess margin in easily cashed out married puts instead of hard cash and make it earn.
To bring back on topic, I do have some Dec 125c CL which are heavily underwater after the recent rise in CL. I now have a hedge, although not 100%, which I hope will allow me to ride out the volatility until I can close out without a loss.
Oct HO 3.95 calls settled yesterday at .0001. They are bid 97 times at .0010. 27 DTE. Futures are down .0089.
I don't know the margin because it has no OI so SPAN does not calculate a margin. We will have the margin amount tonight because it has traded 3 times.
Is it worth the risk to make $42 - fees? You will make most of that tonight if it settles at .0001.
Note to OX traders. If a contract has no OI you have to call the order in to their trading desk. You can't do it online.