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TFC Commodity Trading Forum

Re: A proven trading methods is a good thing /trip

I rarely get to do tick options because either the setup isn't there, it is and I don't get a fill, or the options are not excercisable into underlying futures (eg euro options). I don't rely on liquidity to get out, as I simply excercse the options once they are in the money, and lay off the same day in the underlying futures.
The last time I did a trade like this was 2006 in Bean options - The setups alone are fairly rare!

I don't do "non-futures" options, because I once got "premium raped" in deutchmark options over a decade ago, where the best bid on last day in the market was something like 0.70 for an option nearly double that in the money... That can't happen in US style excercise into futures options, as you can just offset the underlying. I didn't have DM250,000 cash money to excercise the old PHLX ones I was trading back then.

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Re: A proven trading methods is a good thing /trip