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Selling Options on Futures?
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Selling Options on Futures?

  #3221 (permalink)
Market Wizard
Cleveland Ohio/United States
 
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BlueRoo View Post
I contacted RJO Futures. They quoted me $6.00 round turn for future options and $3.00 a side for the underlying.
They seem to be a professional outfit. Their free platform seems equal to Z360. Another alternative.

One other thing to check is "naked option selling friendliness." This equates to finding their margin policy and naked position limits they might have. Last time I looked (late last year), a few brokers were not at all friendly to sellers of deep out of money options...

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
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  #3222 (permalink)
Trading Apprentice
NYC +NY/ United States
 
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kevinkdog View Post
One other thing to check is "naked option selling friendliness." This equates to finding their margin policy and naked position limits they might have. Last time I looked (late last year), a few brokers were not at all friendly to sellers of deep out of money options...

Yes, this is top concern. I only sell options on futures.

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  #3223 (permalink)
Trading for Fun
Brisbane, Queensland, Australia
 
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Margin for RJO


I have already asked the question and am waiting for advice. I will let you know. But I understand they are margin friendly based on a previously communication with them. I have asked if they only apply SPAN margin and if not to detail their policy for me. I have also given them some trade examples to illustrate for me their margin requirements.

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  #3224 (permalink)
Elite Member
London + Great Britain
 
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Platform: Interactive Brokers, OptionsXpress, TradeMonster, RJO, AmiBroker, Wealthlab
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RJO Margin

I opened an account with RJO in January of this year for my option selling portfolio. In the 4 odd months I've been using them they are good. Margin is SPAN for all commodities so it should be the same for you. There is one caveat though.

I have noticed that their salesmen have a lot of leeway to modify and edit terms from the default for any potential new clients. For example in commissions etc. So what you get is dependent on if you are lucky enough to have reached a good RJO salesman or a bad one.

One tip, by default RJO charge a commission for expiring options - an "admin" or "handling" fee or whatever it was called, I can't remember. I negotiated with my salesman to have this removed, which he was willing to do in order to earn my business. You should do the same.

In our option selling, more than half the time we hold the short options until expiry to collect the full premium. You don't want to pay a fee upon expiry as that eats into your profits!


Last edited by Physicsman; May 1st, 2014 at 11:03 AM.
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  #3225 (permalink)
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Hey guys, please remember to also use the appropriate broker review thread to help more people find this info at a later date.

RJO

https://futures.io/brokers-data-feeds/26428-rjo-futures.html

DeCarley

https://futures.io/brokers-data-feeds/22520-carley-garner-decarleytrading-com-carleygarnertrading-com.html

Mike

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  #3226 (permalink)
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CafeGrande View Post
FWIW, those ICE fees of approximately $85/mo are not a new thing. For at least two years they were supposed to be charged to customers of FCMs for real time quotes.

I believe this to be correct. I also believe that if you meet an exchange fee threshold the fee is waived. Unfortunately I also believe that there is a fee for each separate exchange (similar to CME) rather than one fee for all ICE products.

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  #3227 (permalink)
Trading Apprentice
Singapore
 
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Somehow I didn't receive the notification and just found out about the change after logging a support call. I day trade only raw sugar futures and not been able to see the candles means game over for me. Moving to and getting use to another platform will take time. i have decided to pay for a month first and see if I can find a better platform. I saw a recommendation for DeCarley, any better ones you have tried ?

"The ICE-US future exchange has moved to a user enable-based model rather than an actual usage-based model to charge for market data. Though optionsXpress has absorbed the cost of market data on behalf of all futures clients in the past, the ICE-US change in business models makes this uneconomical. Going forward, unfortunately, it will be necessary to pass the ICE-US market data fee through to clients. ICE-US futures products (KC, SB, CC, CT, OJ, DX, and TF) are still available for trading on the optionsXpress platform, and quotes on these products still may be viewed, but as of May 1, there will be an $85 monthly charge in order to access ICE-US market data. This is a pass-through fee to the exchange; optionsXpress will assess the fee and then remit it to the exchange."

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  #3228 (permalink)
Trading for Fun
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chuenpeng View Post
Somehow I didn't receive the notification and just found out about the change after logging a support call. I day trade only raw sugar futures and not been able to see the candles means game over for me. Moving to and getting use to another platform will take time. i have decided to pay for a month first and see if I can find a better platform. I saw a recommendation for DeCarley, any better ones you have tried ?

Chuenpeng,
DeCarley will provide you with access through ZANER to a number of platforms. But the free one is Z360. Go to the ZANER website and you can check it out. RJO Futures who have confirmed SPAN only margin with the normal caveat for their discretion also offer a number of platforms. Their free platform is very similar to ZANERS. You do have to pay a small nonprofessional data fee of $3.00 per month with ZANER (not sure about RJO). These platforms have no option analysis features. I have found Carley Garner very helpful and a good operator in terms of understanding what we do in selling premium.
Cheers,
BlueRoo

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  #3229 (permalink)
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Detroit MI/USA
 
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BlueRoo View Post
Chuenpeng,
DeCarley will provide you with access through ZANER to a number of platforms. But the free one is Z360. Go to the ZANER website and you can check it out. RJO Futures who have confirmed SPAN only margin with the normal caveat for their discretion also offer a number of platforms. Their free platform is very similar to ZANERS. You do have to pay a small nonprofessional data fee of $3.00 per month with ZANER (not sure about RJO). These platforms have no option analysis features. I have found Carley Garner very helpful and a good operator in terms of understanding what we do in selling premium.
Cheers,
BlueRoo

I have been using OEC and have found their platform and support extremely reliable for selling options exactly how this forum describes.

Also their premiums are significantly lower and they dont charge R/T upfront.

When I started shopping for options, I was getting quotes anywhere from $4 to $6 R/T from places such as RJO, OX, DeCarley, Cannon.

What a rip off.

Especially with today's technology where no work is required from a broker just to initiate our self directed trades.

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  #3230 (permalink)
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NYC +NY/ United States
 
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Mo111 View Post
I have been using OEC and have found their platform and support extremely reliable for selling options exactly how this forum describes.

Also their premiums are significantly lower and they dont charge R/T upfront.

When I started shopping for options, I was getting quotes anywhere from $4 to $6 R/T from places such as RJO, OX, DeCarley, Cannon.

What a rip off.

Especially with today's technology where no work is required from a broker just to initiate our self directed trades.

What does "OEC" acronym stand for? I want to check it out, so their fees are lower than $4 for selling options? That's great!

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