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Selling Options on Futures?


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  #4041 (permalink)
psears
Richmond, VA/USA
 
Posts: 35 since Nov 2012
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Awesome reply Ron, and pretty much what I thought you were going to say regarding Cordier's apparently inappropriate use of longer time frame history charts (I mean, who HASN'T heard of the recent fracking revolution?!?!)
My goal now is to spend A LOT of time studying the EIA website which has a ton of fundamental info and try to learn some good old fashioned supply and demand metrics.

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  #4042 (permalink)
psears
Richmond, VA/USA
 
Posts: 35 since Nov 2012
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BTW Ron, what would you think of selling May '15 calls? The premiums seem pretty fat right now (EIA showing volatility being fairly high currently). Maybe sell at 3.25 -3.45 for $400 -$240 per contract? Or would you go even farther out?

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  #4043 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
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psears View Post
BTW Ron, what would you think of selling May '15 calls? The premiums seem pretty fat right now (EIA showing volatility being fairly high currently). Maybe sell at 3.25 -3.45 for $400 -$240 per contract? Or would you go even farther out?

I would never sell NG calls with a delta 0.10 to 0.18. But that is my style.

But selling calls with an eye on the weather would be a good idea now.

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  #4044 (permalink)
psears
Richmond, VA/USA
 
Posts: 35 since Nov 2012
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I'm at work so I can't see the deltas right now, but are you talking more like 3.75?
That premium for May '15 is only $60 now; even less after commissions. Would that even be worth it for you? Or do you just buy a whole lot of contracts?

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  #4045 (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
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psears View Post
I'm at work so I can't see the deltas right now, but are you talking more like 3.75?
That premium for May '15 is only $60 now; even less after commissions. Would that even be worth it for you? Or do you just buy a whole lot of contracts?

May is too low DTE. Look at June.

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  #4046 (permalink)
 rsm005 
vancouver BC/Canada
 
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
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So I added a second position today.

Sold 3 May26th GC P1000 at 1.1 with a delta of .01
Bought 1 May26th GC P1010 at 1.6 as a hedge

Total Margin = $886 per contract.
Projected percentage gain = 6.3%

I'm watching the price to see if an opportunity to leg into the call side shows up. I'm eying GC C1550 with a delta of .02 but for now mostly maintaining my cash position and watching my margins.

/rsm005/

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  #4047 (permalink)
 tbs8877 
Singapore
 
Experience: Intermediate
Platform: Ninjatrader meta trader
Trading: oil
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ron99 View Post
.

I use DeCarley (Carley Garner) and trade at OEC (owned by Gain). Great customer service by Carley.

Could you let me know

1. whether OEC margin requirement is at minimum span margin?
2. Advantages and disadvantages of OEC over DeCarley?

Thanks

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  #4048 (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
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tbs8877 View Post
Could you let me know

1. whether OEC margin requirement is at minimum span margin?
2. Advantages and disadvantages of OEC over DeCarley?

Thanks

1. yes

2. OEC might be a little lower commissions. But when there is a problem Carley knows who to talk to at Gain to get the problem fixed. If you are at OEC you will just talk to the person paid to answer phones or chats. No guarantee they will know how to get your problem fixed quickly.

The little bit more you pay to Carley can easily be made up with her fixing a problem quicker than you going direct to OEC. Getting one problem fixed quicker and getting a trade done sooner can easily pay for her increased costs. Plus you have less stress dealing with the OEC people on the phone.

Just so everybody reading this understands, OEC (Open E Cry), Futures Online and Gain are the same company.

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  #4049 (permalink)
Forex37
Zurich
 
Posts: 49 since Feb 2011
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Hi Ron, just sold my first put 1550 June 15 for 4.10 . Additionally excess margin dropped some 630.00 . Is that a fair margin requirement? The firm is Ironbeam.

Kind Regards

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  #4050 (permalink)
vmaiya73
Salt Lake City, USA
 
Posts: 88 since Jul 2011
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Amazing volatility in coffee; down 9 yesterday almost up 9 today. Definitely oversold so looking for a bounce up. I have /KC 230 calls for about 2 weeks now got in at 0.25/contract

Vijay

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