Married PUT -r Long CALL/ Straddle etc

[moka2]

HI
It is a old debate Married PUT or Long CALL but keeping that aside

- If I am doing a married PUT ( Long Futures Long PUT on future NOT Stock and Stock option)

Then I want the Future to go rapidly in one direction ( preferably mine) so that The profit on the LONG Futures will outperform the cost of PUT

So this in mind
- What Contracts are volatile enough and liquid enough ( Liquidity in it's option also)
- What indicator one should choose to see the volatility?
- On the option side PUT expiry shall one choose? weekly? 3 Weeks/ 1 Monthly?
- Which broker gives the best Cross margin ( should recognize the LONG futures position is hedged )

OR with the idea of doing a straddle ( LONG CALL + LONG PUT)
Same questions as above

All help appreciated

Thanks

 

[options-george]

There are quite a few questions in there

- What Contracts are volatile enough and liquid enough ( Liquidity in it's option also)
I would think it's a fair assumption that underlyings with heavy volume such as ES, TY, CL etc would also be the ones with the most liquid option markets. Thus, a search on "most liquid futures contracts" should point you in the right direction.

- What indicator one should choose to see the volatility?
For measuring volatility in the underlying, I would suggest a simple ATR indicator on the daily timeframe.
For volatility in the option contracts, you can work with the vega component which gives you an idea of the associated implied volatility - you can compare that across underlyings, and against different option contracts

- On the option side PUT expiry shall one choose? weekly? 3 Weeks/ 1 Monthly?
Since you are buying puts, I would suggest to use longer expiration dates, to minimize the time erosion that will work against you. Secondly you should think about the timeframe for which you are making your directional analysis.
If buying a straddle (or strangle), then this becomes double important.

I am not sure whether these comments are very helpful, but I thought I quickly give it a go, since nobody else has responded.