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Before I start trading light crude futures options, I have a question. First, I understand what day these options expire based on the contract month. But what time of day is the last trade accepted? Reasons for confusion: Globex trading hours 6:00 PM-5:15 PM EST. Floor 8:20AM to 1:30 PM...

I am shocked to see that no one has attacked this problem. Take another look. There must be some IC traders here.

Appreciate the comments. I like the suggestion of using an iron butterfly in place of the short straddle. I checked, and the margin requirements really drop for the IB. I also looked at adjustments at the absolute value of delta at 25 vs 50. I prefer to use the underlying ES futures (delta...

Here is a practice problem with IC's vs IB's. I am looking at the October 2010 Futures options with the DEC 2010 as the underlying. When I place IC's I like to place the body at 1 SD (standard deviation). So, this month the ATM strike for me was 1115. The short put would be placed at 1045...

Anyone use these techniques in some form? I wanted to start a discussion, for I am considering doing reverse gamma scalping using short straddles (futures options on the S&P emini's). I plan to add ES hedges when the portfolio's delta becomes -50 or +50. I am not seeing the problems with this...

IB has a nice feature that gives the cumulative greeks (I look at delta, gamma, vega, and theta) of any portfolio--real or what-if. This feature is the mainstay of my trading. So, the "calculations" are in real-time.

This is a true statement. That is why IC and IB require patience.

Best way to protect any downward movement from wipeout is to do a bull put spread (selling a put and buying a further OTM put. This move even lowers margin requirements compared to other similar spreads. Even if the market gaps downward to zero, you are covered for a max loss (spread between...

Talk about stops. I use IB and I know they are simulated. Never placed near obvious resistence/support. Always seem to be the last trade before the market reverses. Bad luck or a fix?

Biggest misconception is vega. When the market moves down, the short put really shoots up compared to the ATM/ITM option on a percentage basis. Same with the shorAlso, margin requirements are much higher than for a comparable IB (iron butterfly). All this induces fear, for it is highly...

Personally, I would exit this spread. No later than Wednesday before expiration. The biggest reason is that you are tying up margin capital that can be used for another trade. Two, if the underlying drops, you lose, so why take the chance. You have a profitable trade--why mess it up over a...

Look at the price volume charts. Moat brokers have them; even the cme website has them. The time intervals change though. My broker shows from 5 minutes on up.

Go to NFA's website (National Futures Association) and read up on the requirements for exepmtion from CTA and CPO status. All of the info is there.

I have been trading ES futures and futures options for many years, and I am curious. Who trades when? Folklore suggests that "dumb money" trades at the open (9:30AM) and most of the morning. The "smart money" starts to come in around 2:00PM EST and trades heavily at 4:00 PM EST. Who is...

I have used the paper trade account with IB from time to time to test option spreads. In the paper trade account, you have to hit the bid or the ask to execute--there is no "negotiation" if you try to place a limit order in the middle. In my regular account with IB, 99% of the time if I place...

Actually long and short straddles will make money in the current environment. Just all about management. Think gamma and reverse gamma scalping.

The time value of the put, either DITM or OTM, is higher than the call. For instance, the may 1125 put had value of 7 when the ES was 1190. The 1255 call was only worth 2.

I have IB as my broker. It allows me to check margin requiremnts before placing a trade. I ran the NP at 5% OTM and compared it to the CC in my examples. The SPAN margins were virtually the same. For futures options, margins are calculated much differently than equities and index options.

I have thought about this. They would be the same depending on the strikes of the put and call. Suppose I am trading the ES and it is at 1200. I want to sell a naked put. I go out 5% and sell the 1140 Put and get a premium. Now, buy the ES at 1200 and sell the 1140 call. Now, to me, these...

I think the option trader app in TWS allows for multiple months, whatever options you want, with all greeks plus IV displayed. I have used it to look out three months so far.