Options selling on futures markets

[russian_trader]

Hello! My name is Andrew, I'm from Russia. In the beginning I would like to ask forgiveness for my English) At this moment I am working on it.

A few words about myself. I am 29. Have a bachelor's degree in macroeconomics, also have calificaciones certificate of financial market specialist in broker, dealer activity and activity on management of securities. Passed 1 level CFA. I have more 8 years expiriance in trading and asset managment. Right now I consult few HNWI investor, and conduct education of trading (have more 650 students), and provide active managment of portfolio the size of a little more than $ 1 million.

On this forum I have 2 goals:
1. Impruve my English skils
2. Get feedback from other trader who also have expirience and conversation about trading and investment ideas.

I have few trading stratagies in my portfolio and my favorite strategy is options selling.

 

[clinician]

Welcome!

 

[russian_trader]

Hello, guys) My first idea which I want to show you will be selling options call on crude oil WTI.
This idea have few fundamental and technic factors:
1. OPEC would signed the agreement to extend production cuts. This is bull factor but market has already priced that into the price. Therefore this factor can't raise prices in near term.
2. Shale oil producers remain unknown variable. Now exist many forecasts about future production size. You shoud known that this forecasts radically different from each other. The difference of the projections on output growth ranges from 0.6 to 1.7 mb/d. If price remain on current level or continue to rise, shale oil producers would have more reasons to grow their output.
3. The third factor is more technical. At the end of the year refiners cuts their stocks of oil that would reduce taxes. This reduces short-term demand for oil.
4. Forth factor is graphic technical pattern:

We can see that the price is not even touch $60 and the reaction from the last bar with big volume is down. This fact tell us that sellers dominating right now.

My trading idea is sell options call above $64. At this time we could sell options call with strike $64 about $150 per contract on february series.

I would be grateful for your questions and comments

 

[clinician]

Hi Andrew
These are naked calls?
What is your strategy if the calls are tested?
Regards

 

[russian_trader]

Hi! I have three stratagy for managment of position:
1. Close position
2. Rolling to far strike
3. Hedge
The situation where we can't use any of those stratagy has a small chance, because our strike above 15% current price

 

[russian_trader]

I'll be glad to communicate with every one who interested in my trading expirience on facebook. This is my page: https://www.facebook.com/profile.php?id=100018974650869
We could exchange our knowledge, my trading knowledge and your knowldge of the language)

 

[punjabi]

Hi Russian_trader. I'm interested to see how you get on with this sort of trade.
What broker do you use for trading futures options - Interactive Brokers?

 

[russian_trader]

Hi Russian_trader. I'm interested to see how you get on with this sort of trade.
What broker do you use for trading futures options - Interactive Brokers?

Hi!
I am add two statements screens for the last quarter one of my clients.

I am use Straits Finance and also I have a contract with them like FIB. Interactive Brokers are good broker, I am use him for trading stocks, but for options trading, in particular for selling options, he isn't good. Because options selling is margin trading. A lot of brokers use SPAN margin and it's good, but IB added Home Premium to margin for reduce their own risks. Thus the margin becomes very large.

If you have another questions I'm glad to answer on them.

 

[Hittfeld]

Hi!
I am add two statements screens for the last quarter one of my clients.

I am use Straits Finance and also I have a contract with them like FIB. Interactive Brokers are good broker, I am use him for trading stocks, but for options trading, in particular for selling options, he isn't good. Because options selling is margin trading. A lot of brokers use SPAN margin and it's good, but IB added Home Premium to margin for reduce their own risks. Thus the margin becomes very large.

If you have another questions I'm glad to answer on them.

What are the commissions at Straits? Minimum requirements to open account?

Thanks

 

[russian_trader]

As I have a contract with them, I have spetial condition for trading. If you want to open account through me, you'll have $10 per round, and $10.000 minimum amount of account.

 

[punjabi]

Russian_trader,

Thanks for the reply. I have about 20 years of straight options experience, but am new to trading options on futures. Although the mechanics are the same, there are some very important differences. One of which is that the margin requirements on naked futures options is much better than the margin on naked equity options. The second is that commodities (which is what I am hoping to get into, oil, gold, sugar) are much more range-bound than the equity markets due to the their very nature, and the lack of a dividend. Thirdly, I like the diversification which commodities would provide - currently I am almost totally equity bound, and this needs to change.
I have recently started looking at selling a iron butterfly spread on GC.
I'm happy to chat further by email with actual trade ideas and results.
(Facebook not an option, as I'm one of the 28 people left on the earth who aren't on Facebook.)

 

[russian_trader]

I'm ready to discuss the markets, but not through email. I suggest skype, whats up or telegram for this goal.

 

[russian_trader]

I suggest fix oil position with smal profit. I fixed it in previous year, but forgot write here.