SP Futures Option Trader blog

Discussion in 'Options' started by fm757, May 28, 2008.

  1. fm757


    I have been selling options on the SP futures with great success. I post my account statements to back up my returns. You will not see that anywhere except here.
  2. Interesting blog Frank, do you only buy/sell the option futures? or do you hedge with the ES cash? How long have you been doing just the futures options? Did you do the SPX prior?
  3. are you doing ES or pit sp / If you are doing pit SP .. who are you using to make your trades in the pit?
  4. fm757


    I only sell option on the SP futures. The only way I buy an option is if it is part of a credit spread. I am just trying to generate a consistant income for myself taking advantage of time decay.

    The basic foundation of my trading is the iron condor where I have a bear call spread above the market and a bull put spread below the market. I leg into the position. Recently I have been trading using short strangles, legging in also.

    If you read the blog right now, I have legged into the call side of a short strangle looking to sell the put side soon.

    I do not do any type of hedging using ES.

    Before trading options on the SP futures I traded cover calls and naked puts on equities. I have been trading options on the SP futures for 5 years now.

    I just use a retail broker to place my trades.
  5. you are gettign bent over if you are using a retail trader and you are doing more than 5 lots .. you should look into a give up agreement with (HAMMER TRADING) in the pit. They are well known ..charge about 1.75 per side as an add on charge.. in the sp options.. 1.75 is nothing. I have used them for years. Excellent fills and speed.
  6. fm757



    Thanks for that info. Can you give me some guidance on how to get that setup?
  7. Call your fcm..retail brokerage and tell them you want a give up agreement..call cme tell them you need a couple phone numbers for pit sp option floor brokers..call floor brokers negotiate pricing..sign give up agreement..fax to retail brokerage..get retail brokerage approval...now you trade with low slippage and people you can trust
  8. 50_Bip


    What's a give-up agreement, and why do I need one? I trade ES futures options via GLOBEX on IB, so I don't trade in the pits. Would having a give-up agreement and trading in the pits on the SP make any difference?
  9. electronic it is not needed..if trading in the pit then yes it is beneficial
  10. 7% per month average return? well at least you're smart enough to withdraw money on an on-going basis. i'm sure you realize your strategy is ripe for a blow-up.
    #10     Jun 1, 2008