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Depending on your broker, you would like to enter both trades simultaneously. My broker ( I trade Future options on the ES (emini S&P 500) does not allow simutaneous entry, for market orders on futures options are not permitted on Globex. So, I ahd to leg in. I shorted the lower premium leg...

Look for companies announcing earning during option expiration week. Suppose Apple is announcing earnings, you believe there will be an upward surprise. So, buy an ATM/slightly ITM call. Wait for the pop. Then short the stock to cover the long call. By shorting the underlying, you overcome...

More Observations based on presented spreadsheet: When VIX was greater than 18, the short straddle consistently profited. Also, when total premium was above 56, it showed consistent profit. When VIX is near hsitorical highs, the short straddle consistently profits. Interestingly, when VIX...

I beleive that IB an offer "market" orders and simultanoeus executions of legs because they are market makers.

More thoughts on short straddles on ES futres options. I noticed that there may be a liquidity problem when trying to exit a serial future option on the last day of trading. What I will probably do is: allow the OTM option to expire, and cover the ITM option, ie sell an appropriate number of...

Gofutures .99 per side is correct. Add in the exchange/clearinghouse/brokerage/regulatry/NFA fees of $1.16 for es futures, and you get $2.15 per side per contract.

I believe that spreads are not native, for they require the ability to execute market orders based on the desired spread premium. Market orders and stop orders (not stop-limit) are NOT native to GLOBEX. I tried to enter a short straddle on the RAN platform, and it was rejected because "market...

I have been studying Markg's spreadsheet a great deal. Some other observations: the biggest losers occurred when volatility moved upward-or should I say leaped upward. Yes, it is tough to predict when this happens, but with the use of stop losses, the damage is really minimal. I also notice...

GLOBEX only accepts limit orders natively--no stop or other market orders. I believe that stop-limits are accepted. Because market orders are not accepted, the two or three legged spreads are not accepted. If I recall, Interactive Brokers will allow ES options spreads because of their...

I want to share a real-life trade for the April ES Options. I placed a short straddle, using only one contract per side. I am short 1 C1325 @39.25. I am short 1 P1325 @36.00. My initial margin for the trade was $6,508.00 and my maintenance margin is $5,955.00. My online platform doesn't...

Take a look at Global Futures. I pay about $2.40 per side for ES contracts. This includes all fees. The J-Trader (free platform) has streaming quotes, and the orders are executed fast and accurately.

I read an interesting post about this. Look for OTM puts with the highest volume and open interest. These probably cost less than $1.00. These puts are typically more volatile than ATM or ITM, so more bang for the buck. Also, theory behind the high vol/high OI is that you are in the company...

As of 11:40AM ET, the total premium of the Mar 1350 Call and Put is 77.50. So, since your initial total premium was 82, your profit is 4.50 per straddle of one contract. In ES terms, this is a $225.00 profit. While it isn't enough to live on, it is still better than a loss in this market...

According to CFTC regs, FCM's must segregate custmer accounts plus the capitalization requirements are much higher than for stock brokers. Basically, this makes FCM's self-insured. The problem comes when fraud and theft is involved. BTW, what ever happened to REFCO accounts? How long did it...

I would recommend Global Futures. They have futures, futures options and forex. They have every platform necessary to execute your trades. Their customer service is unmatched. Their clearing house (FCM) is Rosenthal Collins--tons of reserves, excellent customer service, fast and accurate...

doesn't matter--your loss is limited no matter how deep itm you go. It is the OTM situation that causes a problem. Should you just let the short expire and close out the long leg? I feel that this is a gamble. It is best to just close out your spread the Friday before expiration. Do not...

I starting selling naked puts (ES) at the end of 2004, when volatiltiy was low. I would sell puts about 3% OTM, set my stop loss at twice the premium and sit until expiration to collect. In over words, say the premium collected was 4. I would exit when the premium rose to 12, taking an 8...

I found your short straddle data intriguing, so I took a closer look at some things. First off, the losing months typically occurred during transition periods for the VIX. As the VIX moved from low levels to high levels, the straddle lost. As VIX moved from high levels to low levels, the...