How I Make Money With Futures Options (IN DEPTH GUIDE) | FUTURES OPTIONS TRADING

hi everyone ellie here in this video we will talk about how exactly i make money selling futures options we will go over my trading mentality why i trade futures options and not equity options my trading strategy what positions i open and how i manage them with examples let's get started with my trading mentality there are certainly a lot of ways to look at trading however everyone has the same goal to profit and to be able to succeed at anything in life you need to put yourself in a position where your probability of success is the highest simply if you want to be a professional athlete you gotta get in the gym and put in the work eat healthy and so on if you do these things you increase your probability of success i applied the same mentality for my trading but a bit differently i ask myself what is the most profitable business type in the world and it turns out selling insurances and don't take it from me warren buffett himself understood it at an early age and throughout his career he has been buying a lot of insurance companies now if i find a way to operate similarly to an insurance company in the stock market i will have a very high probability to profit consistently now how can i operate like an insurance company in the stock market you guessed it selling options turns out options are essentially insurance for stocks and futures and you can decide to buy insurance or sell it let's quickly compare a car insurance company to option trading a car insurance company sells insurance and get paid a premium an option seller sell options and get paid a premium for the current films company the premium expires and become worthless essentially you pay monthly for your car insurance after that month whatever you pay doesn't cover you anymore you have to pay premium once more making whatever you paid in the previous month worthless and same thing goes when you sell options the premium expires and become worthless assuming your position is expired out of the money for the current insurance company if there is a loss other insurance payees still pay premium to cover that loss simply if an insurance company has 100 clients and one of them gets into an accident the insurance company needs to pay for it obviously and it means they are losing money on that one person or one client however there are 99 more clients who keep paying their monthly car insurance premium resulting in an overall profit for the insurance company for that month despite the loss on that one client when you sell options if a position is losing there are other positions that are profiting in meantime now that's assuming you have at least five to six positions open at the same time if one position is losing there are five other positions who are profiting and offsetting the loss resulting in an overall profit most of the time for the current insurance company there is a high probability of profit because the amount of people who get into accidents versus how many paying clients a car insurance company has is extremely small how many accidents did you get into since you began driving from those how many of them were serious and expensive to fix probably one or none as you can see the probabilities are in favor of the car insurance company there is a small chance you will get into a serious accident and if you will they are still getting paid by lots of other clients every month to cover your repair and it's even better when you sell options obviously there is a high probability of profits however with options you can decide what probability of profit you will have which is even more remarkable you want a 95 win rate no problem you got it just expect small profits though but like car insurance companies most out of the money options expire worthless and this is a fact there are quite a few more similarities between the two i will make a separate video about that but you can see how similar selling options is to selling car insurance or any insurance for that matter so if i sell options and treat it like a legit business i will have a very high probability to profit consistently and one day even make a living off of that now let's see why i trade futures options and not equity options i have traded equity options in the past with future options you just get a better deal let me explain when selling options there's a thing called margin impact in some brokers it is called margin requirements margin power or buying power reduction because when we sell options we receive premium we get paid effectively we don't risk any of our own money in the process right well this is where margin impact comes into play when selling obviously you can lose obviously and your broker has to make sure you have enough money in your account to cover that loss if it comes to that your broker will serve a certain amount of your account cash in case your shirt options positions are losing this reserved cash is called margin impact let me show you a quick example this is a delta 16 strangle on gld the gold etf if we sell this position we will get paid around sixteen hundred dollars for it at the very bottom you can see our margin impact which is a bit over fifty thousand dollars in simple words it means we need to have at least fifty thousand dollars in our account in cash to be able to open this short position on gold etf if we have less the broker won't let us open this position now let's take a look at gc the gold futures it is the exact same position we receive here around sixteen hundred dollars in premium as well if we sell this position however you can see that our margin impact is almost five times smaller we only need around the eleven thousand dollars in our account to open this position on gc the gold futures so we have the same underlying which is a gold one of them is the gold etf and the other is the gold futures for gold futures the margin impact is almost 5 times smaller while we can make around 1600 selling the gold etf position we can make around 8 000 selling the gold futures position if we sell it five times to match the margin impact to the gold etf simply with features you risk less to make the same amount of money or risk the same to make more money and as i said with figures options you simply get a better deal which in turn will lead to bigger returns having said that let's see what is my trading strategy exactly i stay neutral in my trading meaning i primarily sell strangles and some iron condors for me sting neutral is the key to profit consistently the stock market and the futures market are generally pretty cyclical they trade within a certain range for most of the time and if i can figure out this range and work around it i could be very profitable a short strangle consists of a short out of the money call and short out of money put this is an undefined risk strategy meaning there is no limit for the loss this is what a short strangle looks like on the option chain as we said a short out of the money call and a short otherwise put pretty straightforward the point where the blue sections meet is the current price which is around 67 now as long as the price stays between my short lines of 69.65 my position will profit now let's take a look at the short iron condor which is essentially a defined risk strangle it consists of a short other money call and a further long autonomous call a short iron money put and a further long other money put the maximum you can lose on a short iron counter is the width of the strikes times the options multiplier this is what a short iron counter looks like on an option chain same as a strangle with two additional legs to make it a defined risk tragedy as long as the price stays between my short strikes of 69.65 my position will profit my max loss on this position is the width of the strike which is two dollars times the option multiplier which is one thousand for this chain so the max loss on this position is two thousand dollars minus the premium we received to sell this position and i know the multiplier is 1000 because this is crude oil futures let's see what positions i open using those charges and where i set my profit and loss targets so on the bottom right side here you can see seven different groups in my watch list so each group has different features products that belong to a different major sector in the futures market so let's begin by looking at the corn features that expire in december so here looking at corn december okay perfect so i'm always looking for the cycle that is closest to 45 days to expansion so in this case it will be the cycle the 52 days to explanation and uh with dc i always trade the same way so first of all let's figure out the expected move so currently the price is about 533 so let's go ahead and buy a strangle just to find out the um the price here you can see that the price is about 44 and one quarter so we will take this price and multiply it by 125 so 44.25 times the 125 so our expected move is about 55 dollars up or down it's pretty much if we add 55 to 535 we're looking at let's just cancel it uh we're looking at uh 590. so our expected move is to be uh it might get to uh 509 so i usually go two strikes underneath it and sell and i will do the same thing on the put side so 535 minus 55 should be 680 or 480. so we'll be right here and same thing only go two strikes down and sell it now at this point let's see what's going on with the profile and keep in mind um i'm only gonna use one contract on those positions i usually trade anywhere between six and seven contracts per position but just to simplify it we'll just keep it at one contract and we'll pretend that i have a ten thousand dollar account so pretty much we can see here that we will be receiving three hundred ninety four dollars in uh in premium which is pretty good we have a 76 chance of actually making that money um our margin impacts about one thousand dollars and forty three cents so it's a pretty low and our theta is twelve dollars and eleven cents so for this kind of position i will be taking profits at about half of this so probably at about two hundred dollars because usually when you go ahead and sell the position you you'll get a a much better price than or you'll receive more premium than it says on the uh profile of the uh position just because it shows you the uh the price at which the the buyers are willing to buy the position from you but you will get the midpoint phil which is um probably a bit more than that so since so i will be taking profits at 200 so half of 400 and i will be taking a loss at three times my profit target so if i'm taking profits at two hundred dollars i'll be taking a loss at six hundred dollars and um we have a 76 chance of keeping 400 but if we take profits at half of this we take the losing probability with 24 divided by 2 which is 12 and then we subtract 100 so we will have an 88 chance of making 200 on this position and yeah this is exactly how i would open it and again i will probably do six to seven contracts at least okay so let's go next and close it so next we have uh the precious metals section so i usually trade um either silver or the gold futures but usually the gold features so let's go ahead and see what it looks like called futures we'll take the october expiration cycle and again i'm looking at the cycle that is closer to 45 days to expiration in this case it's the one that has 56 days to expiration so we'll do the exact same thing we'll look at the the current price which is 1811 also we'll go and sell the or buy the straddle to find out the um the expected move and multiply it by 1.25 so it's about 70 78 dollars so if we take 78 and multiply it by 125 we get about 97 up and down so if we take 97 up from 1810 we're looking at 19.07 since we don't have a 1907 strike price i'll treat it as a 1905 so same thing i will go two strikes underneath it to 1915 and i will sell it now we will do the same thing on the other side so we have 18 10 minus 97 so essentially it's almost uh minus 100. we will have a 1710 but we will keep it at 1715 actually and we take two strikes underneath it which is 1705. now with gfe now with gc features um yeah let's take a look at the profile here because there's actually uh the margin impact is it's massive and you cannot use it if you have a ten thousand dollar account we will sell here an iron condor so what i usually do with our calendar over here it will be probably a forty point white ira condor and so it will be at 1665. so if you recall a 40-point iron condor with the optional 100 will be a 4 000 margin impact but with features options it's a bit different and you'll see it in a second so 40 times that 15 and it will be uh 55. go and buy the 55 one let's look at the profile now so pretty much for this position we can receive seven hundred and ten dollars which is uh pretty good our margin impact is about one thousand six hundred and two dollars and again not too bad at all now let's wait for the theta to load up here uh but essentially you can see how martin how our margin impact is only one thousand six hundred dollars and it actually should be this number over here so it's the width of the strike minus the uh the premium that we received but again with features it works a bit differently so we have a uh state out of about 11.49 so it's about the same as the previous position and that's pretty good we want to keep it now um because we have a ten thousand dollar account um taking a loss at half of this will be around three hundred fifty dollars and taking or sorry taking a profit at half of the max return is three hundred fifty dollars and taking a loss of three times our profit will be a bit over a thousand dollars so it that's not good at all we don't want to take a loss at 10 percent of our account so essentially what i will be doing is uh doing the same thing exactly that i did with the previous uh uh position so we'll be taking profits at about two hundred dollars over here and taking a loss at about six hundred dollars so if we take a profit at about two hundred dollars on this position um i'm not gonna make i'm not gonna do the entire calculation over here but it's probably um our probability of profit will probably be uh let's see here 72 28 times one uh probably about 90 um maybe maybe a bit more maybe 91 or 92 percent to make 200 on this position um and then yeah we'll be taking a loss at 600 so this is exactly what i would do with the gc features but obviously my account is a little bit a bit bigger than ten thousand so i will i'll be probably selling uh six to seven contracts and taking a profit at three hundred and fifty dollars or three hundred sixty dollars actually and taking a loss at three times my profit target but yeah let's go ahead and continue on now i just want to mention it's very important that we don't open two positions at the same time from the from the same major um market sector uh well it does depend on your account size um but uh if you do end up opening two positions from the same major sector in the futures market you want to keep them very very small so for example if you're willing to risk 200 on the precious metal sector in the futures market and you only have one position there and you decide you want to open two positions with corn and wheat for example so you want to make sure you keep your entire um lost target at 200 for the entire market sector so you will dedicate a hundred dollars of a loss for your wheat position and another hundred dollars for your corn position so yeah you just want to make sure you don't go overhead with one um sector in the futures market and if you do it it's it's a guaranteed failure trust me you will make money but um at some point where um there are bad news in one in one in one sector um your entire account will go down pretty quickly so let's go to the energy sector so we have crude oil um natural gas and this heating oil so for at the moment i will actually go i'll go ahead and open a crude oil feature actually you know what let's look at the natural gas features they had a big move and the iv is up by quite a bit so it's a good time to sell natural gas features but let's see what kind of deal can we get let's go to the october expiration for the futures and same thing we're going to look at the uh cycle closest to 45 days to expiration which is this one the 56 days to expiration we can see how our iv is pretty high here so it's usually from my experience it's usually ranging about the 30 to 35 percent so now right now it's pretty high so uh what does it mean it means it's a it's a pretty good time to sell because usually uh when implied volatility goes up it usually contracts pretty pretty quickly and we can benefit from it as an option if we sell options obviously so let's go ahead and figure out the um so let's see prices 4.3 4.305 so let's go to the at the money straddle buy it figure out what what is the number multiply it by 1.3 so our number is approximately 0.66 now if we multiply it by 1.25 we get about 0.82 or let's round it up to 0.85 so if we add 0.85 to 4.35 we get 5.2 on the call side so let's go ahead to 5.2 and you'll see 5x2 actually it's a pretty it's a pretty high uh delta value over here 24. i usually trade at the delta 16 range but we'll stick to our mechanics and see what's going on so we'll go ahead and sell the two two strikes underneath it and then we will do the same thing on the other side so we'll have 4.35 minus 0.85 so we we have a 3.5 so for the 3.5 you can see how the delta is actually eight over here so it's not symmetrical uh which does actually say a lot about uh what the market is expecting natural gas to do but i'm not gonna get into into that in this video but usually you wanna follow what the market thinks so we're gonna go ahead two strikes underneath it underneath it and sell it so now we have a naked strangle let's see our profile and figure out what's going on okay so with this kind of position so this is essentially a perfect position to kind of put on at the moment so the best positions are always the ones that have a high implied volatility value so yeah we can see here that we will receive 1 dollars for this position which is it's it's enormous it's a lot of money which is a good thing and uh our margin impact is about one thousand nine hundred eighty six dollars our theta value is thirty five so it's three times the other ones now um again because we have a ten thousand dollar account it will not make sense to take profits at half of this which is around probably seven hundred dollars and then taking a loss at three times our profit which will be uh what is that seven and twenty one hundred dollars it's it's just too much to lose um in your account we'll be taking profits here at 200 as well uh and taking a loss is 600 so it should boost our probability to probably about um close to probably 95 percent so we have a 95 chance to make 200 on this position and we will be taking loss at 600 and and again overall if you have a high implied volatility on the right side here you always want to sell it's it's usually the perfect time to do it and you you have a very high probability of success now let's go ahead to the next one so the next one we'll be looking at is um we can either do them uh the e-mini s p 500 or the um the russell e minis or the nasdaq i personally only do the um the russell at the moment just because the state of the economy and uh yeah i don't really trust the s p but uh it doesn't really matter but yeah well let's look at the the russell so rty futures we'll go for the uh december expiration and again i'm gonna be looking at the cycle closest to 45 days to expiration so let's see let's go a bit more down here we go so so we actually have a cycle that expires exactly in 45 days which is perfect it's very ideal and again same thing again we'll go to the straddle price the at the money price for for the call and put side i'll see the midpoint which is about let's say you want 135 and multiply 135 by 1.25 so we're looking at about a 168 dollar move uh now let's just round it up to 170 dollar move because we don't have those kind of small increments on the strike prices so if we take 2255 plus 170 we get 24.25 so if we go to 2425 here on the call side 24 25 is right here and and we will go two strikes down and sell it now let's do the same thing for the put side let's take 2255 minus 170 equals uh 2085 dollars so if we go to 2085 over here and we will go two strikes down and do and sell as well now um with the gc features uh you need a lot of essentially money in your account to be able to open a position like this so the margin impact is massive it's about six thousand dollars and we will do the same thing as we did with one of the previous positions oh i think i just closed it to 285 let's open it again and it was 20 45 20 24 35 or was it uh let me double check myself here in 2255 plus 170 24 25 perfect so we'll go and sell this one 24 35 two strikes down so we will sell an iron counter here just to minimize our margin impact and maximize our profits now how wide is it going to be um so we have an optional multiplier 50 in this chain in this uh situation so let's go ahead and just try a 40 um 40 white point or a 40 point wide iron condor so 35 times 40 will be 75 go ahead and buy the 75 call or the um 24 75 call option but now we'll do the same thing on the put side so 20 75 minus 40 will be 35 20 35 and now let's take a look at the profile and see what's going on see here well i want ideally to take profits at about 200 um so this um this is not enough premium for me to receive so we will just go ahead and move one straw i'll move to a 50-point wide iron counter so it will be uh 20 25. we'll do the same thing on the call side now did i go to no there we go so a 50 point will be 24.85 and now let's take a look at the profile right here okay yeah so now we receive probably a bit over the 415 dollars so we will we will be taking profits at 200 in this position so about half of um what we will receive meaning our profit uh our profit probability will be around uh 86 which is exactly what you expected to be 85 86 percent our margin impact is at just 748 and our theta is about 8.69 it's a bit lower than the other positions but it's definitely acceptable and just to make sure um that we are on the same page this position and any of the other positions they will profit as long as the price of um for in this example of uh the russell features will stay in between my short strikes so if the price stays in between 24 35 on the on the call side and 20 75 on the pull side my position will profit so essentially i'm not directional i don't care what the stock moves as long as it doesn't move too quick and too much as long as it's going to bounce between those two lines the the call side and the put side i don't care at all my position will profit and then this is the beauty in training neutrally and mechanically there's really not no emotions involved or obviously there are but not as much as a if you would have wanted to try and guesstimate in what direction it will move and how much now let's go ahead and continue on with our positions so let's go to the other side so this is the paper asset uh or so this is um the 30-year u.s treasury bond features and i'm usually opening the uh the zb features actually and this is the position i have on right now actually so let's go ahead and look at zb the db i'll take the december expiration again looking at the cycles closest to 45 days of expiration which is in this case is 52 and again we do the exact same thing we just go ahead and buy the straddle look at the um the price over here and then we just add and subtract so we have four and so we'll do eight oh a divided by 64 plus four times 1.25 so we're looking at the move of about five dollars up and down so let's add five dollars to 163 dollars so we're looking at 168 and then we'll go two strikes underneath it and sell it same thing on the put side 163 minus five will be 158 then we'll go two strikes underneath it and sell it now let's see what kind of deal are we going to be getting here right now so we'll be receiving about uh 531 dollars on this position to sell it we have a very high chance of of winning this position or making money in this position however our margin impact is pretty yeah it's quite a lot it's about three thousand dollars uh and our current theta is about 19. so pretty much we wanna if we again this is assuming we have a ten thousand dollar account in my account i don't actually do any of it but um when i had a ten thousand account uh probably five six years ago um this is exactly what i was doing or i would have done uh so we need to decrease our margin impact and we also want our data to probably around 10 to 12 give or take so how do we do it we just uh get in uh or we just sell an iron condor instead of a short strangle now an iron counter is a lower probability profit strategy than a short strangle uh even though it doesn't really look that way it is actually um i'm not going to get too much into this into detail but let's just continue on so how wide are we going to make it so we have a multiplier of 1000 let's try and make it about a uh iron condor so we go ahead and buy the 173 strike price for the call side and let's buy the 153 um put option and let's look at the profile and see again what kind of deal are we going to be getting so this is a bit a bit better but again uh we want to be able to get at least 200 of profits um or we want to be taking profits at half of what we receive and we want it to be at least 200 so this is not enough so let's go ahead and cancel it and actually let's go let's try and go six point wide so 150 i'm gonna go on the put side and we'll do the same thing on the call side so 176. and we're looking at that's that's pretty good that's exactly what we want so essentially we will sell this position for probably around 380 dollars which is pretty good pretty close our margin effect is about um 12 uh 1298 pretty good and our data is exactly where we want it to be and uh this is yeah i will be taking profits at about half of whatever we end ending up receiving so our profits are probably going to be at about 180 or 190 will be the profit target our loss will be three times that which is about uh 570 which is pretty good it's a about 5.7 of our account and our profit probability will go up from 82 percent uh to let's see here to 91 so we have 91 chance of making half of whatever we're going to receive which is probably around 180 dollars uh in total profits and uh yeah let's continue on here and if you can notice i build this um um like my uh account positions so that even if worst case uh so even if there's a worse case where everything is just going to fall and my accounts are going to be losing a lot of money or my position i'll go all of my positions are going to be losing uh pretty much we're going to have about seven positions in total and each of them will be losing about six percent on average or i'll say probably yeah six percent on average so six times seven is about forty percent or forty two percent uh so our my account will be losing around uh forty percent if you know if everything goes just completely bonkers which is um never it never really happened in the futures market before but you never know okay now let's go to the next major sector and i'm not naming the major sector because i'll be honest with you i don't really um i don't remember all the actual names of the sectors but this is a sector where we have sugar cotton coffee orange juice and this one is a lens lumber so um i will be i'll specifically usually sell sugar um features or sugar option features so let's take a look at what we can get from the sugars so let's go ahead and choose the october exploration cycle again let's look for the cycle this is close to 45 days to expansion which is in this case 45 exactly and let's go ahead and buy the at the money column put get our number multiplied by 1.25 and work our way from there so it's 0.018 times 1.25 will be around 0.225 so we'll add 0.225 to 0.205 and we get 0.256 so let's see what we have this is that's closest to this 0.255 it's close enough so we'll go ahead and actually sell two strikes down here we go and then we will do the same thing on the put sides so that's 0.25 so it will be 0.205 minus 0.051 [Music] so we're looking at uh zero zero 0.153 and sorry that i'm not showing those calculations on the screen i'm just doing it my phone over here 0.153 will be let's say right here and actually uh i think we made a mistake in all calculations because this is too far out of the money okay so yeah i'll figure it out yeah so pretty much yeah we did the we did everything correct it's just that our this is just the expected move on sap features and you can see if we follow our actual actual plan we only can receive 45 for this position obviously this is not something we want to go for so at the moment actually i will not sell any sap features at all uh it's just it's not worth it yeah you don't get enough money and just out of curiosity if we go ahead and sell this to the delta 16 column put let's see what we get because remember you always want to stay outside the expected move if you don't you're kind of playing a dangerous game um but actually uh yeah still uh it's a pretty good deal for what we get for our margin impactor for our theta if we sell the delta 16 or about delta 14 to 16 column put side we do have a high win probably of chance of making money on it but i specifically will kind of stay away from it i'm not gonna sell it at the moment uh now i do have an sb features uh options position on but uh it's been on for quite a while so i'm pretty sure it's just this cycle that has a very bad or a very very high expected move and uh yeah if we sell according to our expected move or outside the expected mode we just received no money at all so once and those things do happen sometimes um and it's just this is an indication for you to kind of stay away from this underlying in the moment and kind of check on and check on it probably once a week and see if anything is going to change because you don't want to sell and be within the expected move you you're just setting yourself up to failure at the end of the day so we will not sell the uh sb features options let's just look at the uh oranges one now i haven't traded orange juice for a long time so i'm not sure what to expect here let's look at the november expiration one again let's look at 45 days to expiration yeah so that's probably why i don't trade it yeah there is no volume at all you can probably tell by how empty the bid and s columns are and the volume and option interest are yeah so i'm not even gonna touch it now let's go last but not least let's go to um again i'm not sure exactly what oh i think it's a livestock the uh the major sector over here so we have uh live cattle we have lean hog and we have feeder cattle now again i just want to mention another thing there are a lot more underlyings for each major sector in the futures market uh just throughout the years i've i found that these um the ones that i have on the screen over here are the ones that have the most volume in the option chain uh for obviously and other ones just have i have no volume at them you know at the moment or over the years at all so let's look at the uh live sorry the lean hog and or lean hogs this is this is what i usually trade now with the lean hogs features um their expiration is a bit tricky and they'll be able to tell yeah so pretty much you see how far apart they are so uh yeah and usually i try to find the expression close to 45 days to expiration but obviously if it's uh you know if the closest expression is around 105 days i'm i'm not going to be doing it obviously i'm going to be waiting i usually wait until it's going to get to probably around 60 days and then or 61.62 is also fine and then i open the position but right now we have um you know an ideal situation where we have 44 days to expiration of the october on the october cycle so let's go ahead and do the exact same thing that uh we did so far we're gonna buy the um at the money call and put option or just buy the straddle essentially look at the uh the price here so it's about uh 6.2375 times 1.25 so we get about seven point seven eight so let's call it eight so are expected are to be outside the expected move we at least need to uh sell eight dollars away from uh the strike of the strike price of 89 so 89 plus eight will be 97 so we'll go 97 we'll go two strikes down and sell it and 89 minus 80 89 minus 8 sorry it will be 81. so 81 will go two strikes down and sell it so it'll be and the 75 dollar strike price for the put side now let's look at the profile and see what we get here so again this is this is pretty ideal for us this is exactly what we're looking for especially if we have a ten thousand dollar account now if you have a twenty or thirty thousand dollar account uh you know it becomes a bit different of uh in terms of how you need to treat your positions but overall you just want to make sure that and worst case scenario the worst worst worst case scenario comes you're still going to be able to stay afloat and worst-case scenario is obviously extremely unlikely and uh quite frankly i don't think it um it it ever happened in the last 100 years when the futures market completely collapsed now i might be wrong but um as far as as far as i know it never happened so let's go back to the position we can receive here 460 dollars we will be taking profits at about half so about probably 230 dollars um probably about 220 just to kind of keep our loss um not as big so if we take profits at 220 going to be taking a losses three times that which is 220 times three 660 dollars now we have a 79 chance of keeping for the 460 but again because we're taking profits at about half of this we're going to take the losing probability of 21 and dividing it by two because we also divide the max return by two now 21 divided by two will be uh around around uh ten and a half let's round it up to eleven so then we go ahead and subtract 11 from 100 so we're gonna have about an 89 chance of making 220 uh yeah about 220 on this position um yeah also we also have the commission over here so this is the commission um one way so essentially only to open this position and it's um it's rounded up actually the commission is probably about um i think it's five point four eight we would take but it doesn't really matter at the moment and our margin epact is at 1936 which is pretty good r30 is about 1675 currently which is also pretty good and yeah this is yeah this is a very good trade to open uh lean hogs they do make quite big quite big moves sometimes but overall i think i'm i'm pretty profitable on them uh i think the only one that i'm actually that accounts for more than half of my losses is natural gas but yeah this is a topic for another win uh video and uh yeah let's leave it at that i hope it helped you guys to kind of see exactly how to properly and maturely trade futures options and i just wanna i just wanna let you know i do um i i have met some people that also uh do uh or trade features options that in the the issue with them is um they usually stick to just one or two major sections in the futures market which which is okay but um long term it's it's definitely not a solution or it's not how you can kind of make a lot of money or make make big returns or bigger returns consistently in the futures market you have to diversify within the major sectors and uh just you know keep it small keep it low and um don't look at the all those people who make you know two thousand dollars a day with the only 1000 account it's not possible well it is possible but it's not sustainable you all you always end up losing because uh you don't have pretty much any edge in the game i want to let you know that for the first time after helping a few friends and family members to start trading futures options and profiting i am launching my own coaching plan for new traders and experienced ones it is me coaching and teaching you everything i know so you can start making money and building your wealth i will build a personalized plan based on your knowledge level and you will have access to me 24 7 for whatever questions you might have and coaching sessions i will only be taking on 30 people at the moment as i only have so much time on my hands when you sign up you do get a free seven day trial and you can cancel anytime click the first link in the description below to find out more details thank you so much for watching i hope you have a profitable day and i will catch you in the next one [Music] you

Channel: Eli Buyko - Futures Options Trading

Views: 605

Rating: 4.8461537 out of 5

Keywords: selling options for income, selling options, trading options, how to trade options, options trading, stock market, selling options strategy, selling options premium, selling options explained, options trading strategies, investing, financial education, options trader, Passive income, selling options on futures, options on futures, buying options vs selling options, buying options, theta decay, futures trading, options futures trading

Id: TSjqUc-8hHw

Length: 42min 4sec (2524 seconds)

Published: Fri Sep 03 2021