I started about a year ago selling options on futures. The commission my trader was initially charging was $22 per option plus floor fees per side. A ton of money. ....I have been negotiating the commissions down as I get some knowledge and sell more options to the point that I am paying now $ 5 plus floor fees per side. Last month I sold or bought back 27 options for a total of $416 in commissions and fees. Still too much money, according to what I read here.
I went Option Express but they donīt take accounts from Colombia. Question: Do you have any suggestions as to where or how can I reduce the commissions and fees I am paying at the moment?
When it comes to strictly fees, in my opinion, Interactive Brokers has the lowest fees. My rate was $2.32 FLAT for any commodities option traded. There were no platform fees, overnight fees, or exchange fees. Just one flat $2.32
But the catch with Interactive Brokers is that their margin requirements are much much much higher than most places, probably one of the highest I've seen, at least here in the United States.
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Beginning April 8, electronic and floor trading hours for CBOT Corn, Soybeans, Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and KCBT Wheat futures and options, plus all related CBOT and KCBT calendar spread options and inter-commodity spread options, will be amended as follows:
Sunday to Friday, electronic trading from 7:00 p.m. to 7:45 a.m. CT
Monday to Friday, break in electronic trading from 7:45 a.m. to 8:30 a.m. CT
Monday to Friday, floor and CME Globex trading from 8:30 a.m. to 1:15 p.m. CT
Daily settlements for CME Globex and floor trading of these products will be based on market activity at or around 1:15 p.m. CT each day.
Everyone in this thread needs to watch these videos.
OK..So, thinking in terms of the SPX:
Her initial starting point is 100 points away then 12% further out from that. (5% probability of going ITM)
Sell side is PUT oriented but will look at CALL premiums from time to time
About 56 DTE
15% profit target per trade (for the 56 day period)
Stick with the plan
The only thing that raises a flag is the high % or capital used...up to 75%. Leaves only 25% cash on hand.
I traded my first corn contract about 18 years ago. I would hate to start my trading career selling premium uncovered and not knowing the risks, emotions, money money management, etc. that are involved with it much less any trading method. Read read read...Learn learn learn.
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