Option trade ideas
- Thread starter fxkool
- Start date
I like your charts XM, will have to find out more about them.
Just for pig iron, what do you get when you look at the following ZS options with your software..worth considering?
Sell Jul 16 ZS 1000 Call...Delta 0.48...420 days to expiration
Buy Nov16 ZS 1000 Call...Delta 0.45...539 days to expiration
Should be a credit..but I think I am missing something with this spread..maybe you can shed some light as to the diff between this and the Aug/Sep spread - apart from obvious greater months span?
As you said, futures markets are tricky and require expensive software, so be interesting to see what you see here?
Thank you for your time.
J_S
Just for pig iron, what do you get when you look at the following ZS options with your software..worth considering?
Sell Jul 16 ZS 1000 Call...Delta 0.48...420 days to expiration
Buy Nov16 ZS 1000 Call...Delta 0.45...539 days to expiration
Should be a credit..but I think I am missing something with this spread..maybe you can shed some light as to the diff between this and the Aug/Sep spread - apart from obvious greater months span?
As you said, futures markets are tricky and require expensive software, so be interesting to see what you see here?
Thank you for your time.
J_S
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LoL. They are called TFlow charts. Honestly, I don't know how to read them but I forgot how to convert spreadbars into candlesticks. I think you are supposed to read Tflow at a much closer zoom.
You are making a play from backwardization to contango in the spread. Considering the timeframe vis-a-vis expected move, you would have to put on a lot more contracts compared to near term months. And, the actual realize move will typically be a fraction of the maximum measured distances if at all favorable to you. Some analogies: It's like waiting for a pig to go through the python. and The tail wags the dog.
I am not even sure why we get extra undulations in the soybean curve unlike Corn and Wheat.
You are making a play from backwardization to contango in the spread. Considering the timeframe vis-a-vis expected move, you would have to put on a lot more contracts compared to near term months. And, the actual realize move will typically be a fraction of the maximum measured distances if at all favorable to you. Some analogies: It's like waiting for a pig to go through the python. and The tail wags the dog.
I am not even sure why we get extra undulations in the soybean curve unlike Corn and Wheat.
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I looked them up XM, part of the expensive CQG package, which looks a top quality product btw, but not for me as I think the required information can be had at a much cheaper price for the retail trader.
I am very interested in learning more about futures spreads and the correlation with same month futures options. One step at a time for me, as I hate maths
Need to start some simple recording of daily ZS futures levels in excel, as I think that will assist greatly in clarification of some points.
Looking forward to continued discussion and additional option trade ideas.
J_S
I am very interested in learning more about futures spreads and the correlation with same month futures options. One step at a time for me, as I hate maths
Need to start some simple recording of daily ZS futures levels in excel, as I think that will assist greatly in clarification of some points.
Looking forward to continued discussion and additional option trade ideas.
J_S
I use QTrader, a limited version of CQG Integrated Client, which you can get for free from AMP Futures.
CQG usually charges $25 a month + .10c per contract but some also brokers subsidize this cost for you.
The limitation of QTrader is that you can only execute exchange traded spreads. But, this will give you access to the Excel RTD connection. CQG provides pre-built spreadsheets which will give all the different studies you may need.
The futures options functionality is not that user friendly, but there really is no retail platform that is user friendly. However, You can expect professional live chat support from CQG. And, documentation is superb.
CQG usually charges $25 a month + .10c per contract but some also brokers subsidize this cost for you.
The limitation of QTrader is that you can only execute exchange traded spreads. But, this will give you access to the Excel RTD connection. CQG provides pre-built spreadsheets which will give all the different studies you may need.
The futures options functionality is not that user friendly, but there really is no retail platform that is user friendly. However, You can expect professional live chat support from CQG. And, documentation is superb.
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I like to understand what I am doing first XM, for if the basic fundamentals are not understood there is really no hope of making any money worth talking about.
Trading stock and index options are not the same as futures commodities, so no sense in trying to fool oneself. This is a real game for the big boys, so best to learn first and then trade with small size until comfortable with losing and winning trades.
I really do like a challenge, but must admit I do find it hard to get easy to understand information about spread trading futures and futures options.
On we go, and hopefully upwards!
J_S
Trading stock and index options are not the same as futures commodities, so no sense in trying to fool oneself. This is a real game for the big boys, so best to learn first and then trade with small size until comfortable with losing and winning trades.
I really do like a challenge, but must admit I do find it hard to get easy to understand information about spread trading futures and futures options.
On we go, and hopefully upwards!
J_S
XM,
When you get a chance can you please post an update for the chart above, and also post one for the following with it.
Sell Aug ZS15 980 Call
Buy Sep ZS15 980 Call
Thx,
J_S