Support Board
Date/Time: Wed, 27 Nov 2024 00:24:27 +0000
[User Discussion] - Futures Options
View Count: 1588
| [2022-07-28 14:13:34] |
| Divesh - Posts: 9 |
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Hi 1)Could you please advise if I can trade futures options on Sierra chart? How can I set that up ? I am on service pack 11. 2) Which broker can I use for futures options? I am currently with AMP for futures trading but they only allow long options. Thanks |
| [2022-07-28 14:57:40] |
| Tony - Posts: 519 |
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Hi, User488633 Sorry for interrupting, I have never traded futures options (had traded stock options long time ago), wonder what are the advantages over trading futures? Thanks! Somebody asked a similar question, but it was Index Options: Trading S&P 500 index options on Sierra chart Although I don't think we are able to load option chains in Sierra though, I could be wrong. Date Time Of Last Edit: 2022-07-28 15:07:52
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| [2022-07-28 15:08:03] |
| Divesh - Posts: 9 |
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Main difference is margin is less in futures options as compared to stock options and also naked short selling is allowed. Do you know if any Broker allows futures options trading with naked short selling ? I use AMP as a futures broker but they only allow long options. Thanks Divesh |
| [2022-07-28 15:13:52] |
| Tony - Posts: 519 |
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I have been using Interactive Brokers for quite a long time, they allow naked selling, but the margins for naked are way higher than long or spread/muilti-leg positions. One of my friends sold naked stock options before the pandemic, although the R/R was terrible, but win rate was extremely high, he could make a living back then, but under today's market condition, he couldn't do that anymore, it's too volatile. If margin is the only concern, then it is probably better to trade futures, lot of futures brokers in the US offer 600 USD - 1000 USD margin for ES mini/contract. Date Time Of Last Edit: 2022-07-28 15:17:58
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| [2022-07-28 15:19:56] |
| Divesh - Posts: 9 |
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Hi Tony Yes I will be trading futures too along with call selling or put selling option. Do you know if interactive brokers allow Futures options trading rather than just stock/index options trading ? Also is it easy setting up Interactive broker to sierra chart ? Does Interactive broker show option chain for index/stock ? Thanks for your help Divesh. |
| [2022-07-28 15:24:17] |
| Tony - Posts: 519 |
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Yeah, I had placed a couple of trades on futures options on Interactive Brokers just for testing purpose. Their option chains are great! (Index, Stocks, Futures) and it is very easy to set up with Sierra Chart: Interactive Brokers Trading Service Just a heads up though, Interactive Brokers doesn't offer any percentage on futures margin, i.e. 15,000/contract for ES mini. |
| [2022-07-28 15:33:17] |
| Divesh - Posts: 9 |
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Hi Tony, Yes thats fine I will be using AMP for my futures trading and IB for Options trading. I appreciate your help on this. I might contact you in future again if I need any more help on this topic with setting up IB. I hope that is OK. Divesh |
| [2022-07-28 15:38:03] |
| Tony - Posts: 519 |
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No problem man, just DM me, glad to help.
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| [2023-10-03 01:46:34] |
| Equasar - Posts: 1 |
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Hi Tony, I have been using interactive brokers for futures on option trading. However I am having difficulties setting this up through seirra chart. Could you help me set this up correctly on seirra chart please? |
| [2023-10-03 03:54:41] |
| Tony - Posts: 519 |
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@User577852, I think Sierra Chart never offered to view option chains. Here is an old discussion about Futures options, but it seems that the access of option data mentioned in that post has also been removed. Options chain using Sierra Denali What my friend is doing right now is watching Futures chart on Sierra and trade options in Interactive Brokers' option trading window. |
| [2023-10-03 12:57:07] |
| caligola - Posts: 116 |
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@User577852 you can get the options symbols this way Futures options symbols not working with Denali ? but I'm not 100% sure that the delayed datafeed has this capability take a look at this option on futures that expires tomorrow and is 9 points ITM in the ES https://i.imgur.com/xaDc2XG.png Date Time Of Last Edit: 2023-10-03 12:59:18
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| [2023-10-04 08:43:42] |
| User61168 - Posts: 403 |
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Hi guys, I am a complete noob related to options trading so would any of you share some of your knowledge or links on how to get me started with learning more about "Option on Futures". I learn quicker by examples or to try our publicly available trading strategies. My interest lies in 1) hedging my exposure with open positions in futures (either during intraday or overnight) 2) daily/weekly income producing strategies. Much appreciated. |
| [2023-10-04 16:44:06] |
| Tony - Posts: 519 |
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@User61168 I don't trade Futures options, not able to help on that subject. I have traded stock options for a few years, I could share a little bit of my experiences in those years, I assume you already know the basic terminologies of options. I were never able to find an ideal strategy, most of the strategies have profit cap and had to fight time decay (meaning the value of option drops over time even the price of underlying doesn't change), of course time decay works to your favor when you selling options, but you will get terrible reward/risk ratio. The main reasons I traded stock options are high leverage and great margin requirement. (i.e. if I think a certain stock is bearish, I could just buy puts instead of shorting that stock) I got all those advantages with Futures products, that's why I don't worry about Futures options either and put all my focus on price actions. It doesn't matter how 'brilliant' my options strategies are, at the end of the day, I am really at the mercy of price actions of underlying. |
| [2023-10-04 17:44:07] |
| User584084 - Posts: 262 |
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https://www.optionsplaybook.com/option-strategies/ https://www.optionsprofitcalculator.com https://optionstrat.com |
| [2023-10-05 08:02:24] |
| User61168 - Posts: 403 |
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Thanks Tony. Makes a lot of sense. I am happy with Futures when it comes to leverage and I also rely solely on Price so if there is a combination of Futures-only and Futures with option on future to reduce volatility or overnight carry exposure risk, that would be my area of interest. Due to high overnight maintenance margin, we are forced to close trades so instead of exiting at NY session close , if I can hedge my positions with options, it might be worthwhile to look into. Atleast that's my thought so far with limited experience. Thanks User584084 for the links. I will study them. BTW: I am not looking to get into active options "trading". The thought of buying weekly options on Monday and selling on Friday to generate weekly 'income' is appealing for those approaching retirement imo. I also read on some online forum that option on futures "strike price" acts as SR levels for futures. I have no idea how to even go about putting options on chart to see if there is any merit. If you or someone can create a chartbook for say ES or NQ with options related information, that would be a great start. |
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