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Selling Options on Futures?


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Selling Options on Futures?

  #5801 (permalink)
uwevoelker
Hamburg, Germany
 
Posts: 15 since May 2014
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I would like to bring the topic (again) to broker selection. I currently trade at DeCarley (Zaner/GAIN) with Zaner360. The service is outstanding, but the fees are very high (8.62 round turn) and the software only allows single legs (no spreads).

I found this page: Options Spreads - Electronic Platform Information Console - Confluence
It lists exchange recognized spreads and it has the vertical spread but also Ron's 2:1 spread listed.

I had a demo account at Zumo (Ironbeam) with the Firetip software. It does include spreads, but only very random strikes. A representative of Zumo told me that "There would be no way to enter custom spreads into Firetip as you have asked."


Do you know futures brokers where I can trade these spreads (as one order)?

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  #5802 (permalink)
 
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 SMCJB 
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I use TT and clear Advantage Futures and can do exactly that. I think you'll find its more a software issue than a Broker issue. The higher end software (like TT) which costs a lot of money will all be able to do it, question is whether there is any cheaper software that has the functionality. I am flabbergasted that Tradestation can't list futures spreads!

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  #5803 (permalink)
uwevoelker
Hamburg, Germany
 
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May I ask what you pay per month and per round turn?

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  #5804 (permalink)
 
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 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
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Frequency: Many times daily
Duration: Never
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They have a calculator on their website
Commission Calculator - Advantage Futures

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  #5805 (permalink)
 jokertrader 
NYC, NY
 
Experience: Intermediate
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Just adding maybe CQG qtrader at 40/month is a good option I use it for out rights as well as spreads of course need a good broker to support it for example Amp does not do spreads


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  #5806 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
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uwevoelker View Post
I would like to bring the topic (again) to broker selection. I currently trade at DeCarley (Zaner/GAIN) with Zaner360. The service is outstanding, but the fees are very high (8.62 round turn) and the software only allows single legs (no spreads).

I found this page: Options Spreads - Electronic Platform Information Console - Confluence
It lists exchange recognized spreads and it has the vertical spread but also Ron's 2:1 spread listed.

I had a demo account at Zumo (Ironbeam) with the Firetip software. It does include spreads, but only very random strikes. A representative of Zumo told me that "There would be no way to enter custom spreads into Firetip as you have asked."


Do you know futures brokers where I can trade these spreads (as one order)?

8.62 is not very high. It is compared to IB but you know that your ROI will be lower there. You get what you pay for.

Calculate your yearly cost. With my strategy you are only making 12-13 RT per year. Is it really that much more for a whole year?

That CME site may say they do 1:2 spreads but do they do they strikes you want? Most of the time I find they do not.

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  #5807 (permalink)
Flintsone99
Springfield USA
 
Posts: 18 since Jan 2017
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uwevoelker View Post
I would like to bring the topic (again) to broker selection. I currently trade at DeCarley (Zaner/GAIN) with Zaner360. The service is outstanding, but the fees are very high (8.62 round turn) and the software only allows single legs (no spreads).

I found this page: Options Spreads - Electronic Platform Information Console - Confluence
It lists exchange recognized spreads and it has the vertical spread but also Ron's 2:1 spread listed.

I had a demo account at Zumo (Ironbeam) with the Firetip software. It does include spreads, but only very random strikes. A representative of Zumo told me that "There would be no way to enter custom spreads into Firetip as you have asked."


Do you know futures brokers where I can trade these spreads (as one order)?

Are you able to open an account with TD Ameritrade (Think or Swim TOS) from your country?
It is a very good options platform that allows complex order entry as well a decent backtest tool

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  #5808 (permalink)
 datahogg 
Knoxville Tennessee USA
 
Experience: Intermediate
Platform: TOS
Trading: ES, NQ, CL, /6E futures options.
Posts: 346 since Oct 2012
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Flintsone99 View Post
Are you able to open an account with TD Ameritrade (Think or Swim TOS) from your country?
It is a very good options platform that allows complex order entry as well a decent backtest tool

I have surveyed options analysis platforms, and can find none better than TOS.

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  #5809 (permalink)
Forex37
Zurich
 
Posts: 49 since Feb 2011
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datahogg View Post
I have surveyed options analysis platforms, and can find none better than TOS.

TOS at the moment won`t accept any customers for non-cash-accounts from EU countries - even bullies existing ones to leave -- even UK customers. Maybe due to to avoid competition with Ameritrade`s Luxembourg TD Direct .

Kind regards



p.s. Opening a cash account will still grant you the analytical tools.

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  #5810 (permalink)
 T 40 
Chicago, IL
 
Platform: TT
Trading: Energy / Grains
Posts: 3 since Jan 2014
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Thanks Received: 2



uwevoelker View Post
I would like to bring the topic (again) to broker selection. I currently trade at DeCarley (Zaner/GAIN) with Zaner360. The service is outstanding, but the fees are very high (8.62 round turn) and the software only allows single legs (no spreads).

I found this page: Options Spreads - Electronic Platform Information Console - Confluence
It lists exchange recognized spreads and it has the vertical spread but also Ron's 2:1 spread listed.

I had a demo account at Zumo (Ironbeam) with the Firetip software. It does include spreads, but only very random strikes. A representative of Zumo told me that "There would be no way to enter custom spreads into Firetip as you have asked."


Do you know futures brokers where I can trade these spreads (as one order)?

If you have an IB account, try them out. If you open the "OptionTrader" window and pull up ES you can build the spread there and it will send the order to the exchange as a native spread. I attached a screenshot using the last trade I could find that Ron mentions putting on ESk7p1825p1580(2). Margin for this is around $1000 per spread. Pretty high.

One way I am looking at to reduce the margin and stick with IB is using a diagonal spread selling one option around 100 days out and buying 2 around 70 days out. By doing this I am able to trade strikes that are around 120 points apart to get a premium of $2.00 to $3.00. The IB margin for this spread is around $500. This can also be sent as a native spread order through IB's TWS.

I have traded both of the same month and diagonal spreads with IB over the past few weeks and the quoted bid ask spread is about 0.30 to 0.50 wide in both. If you submit an order to sell around the midpoint a new bid will usually come in closer to your order.

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