I'm new to the forum and had a quick question for the group. I've been selling options on futures for the past year with pretty good success. I've been using OptionsXpress but this weekend they are merging with Schwab. I'm not sure what that will ultimately look like but I've been thinking about holding my account elsewhere. I've been researching the other brokers but they all seem to have their quirks.
I'm curious what platform other option sellers use and why.
Regarding option selling, I work with DeCarley for two reasons: Carley has a positive attitude towards option selling, and she offers the best service I ever received from a broker.
Best regards, Myrrdin
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Hi Myrrdin- I’ve looked at DeCarley in the past. I like Carley and what she’s about, but I ran out of steam trying to figure out a trading platform setup that makes sense... Any insight? What does your setup look like?
I use the Zaner360 platform. It is certainly not what I would like to have, but for option selling it is ok. Some weeks ago they included the Greeks to their option chains which helps.
Carley is able (and willing) to compensate for some of the deficits of the software.
Cannon Trading Co. works with six well-known clearing firms (FCM’s) and one with which it has been doing business for over a decade, Gain Capital, offers a free trading platform that now provides Greeks and theoretical prices in the platform’s Option Chain window. Setting up a Gain Capital account through Cannon Trading Co., a near-thirty-year-old Introducing Broker, is a top shelf choice.
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I'd definitely like to hear more. Are you selling options on futures there? If so, how are the margin requirements and what does the market access look like?
TOS is now TDAmeritrade. It is definitely a very good choice for a starter. Its commission is very cheap, compared to the brokers of gain capital. This allows you to do narrow spreads ($2 in crude oil) to test the market with limited loss. You can trade ES, ZS, ZC, ZW, CL, GC, ZN, & NG. The only limit is that for contracts besides ES and grain, you can have only 3 month options to play. No silver, copper, coffee, coca, cotton, etc. But that's enough for a beginner.
TDA's UI is fantastic. It is tailored for absolute beginner. Its Analyze page can show you the decay/margin by incrementing the date.
You can also got portfolio margining with TDAmeritrade if you pass a test.
If you are absolute beginner, stay with TDA for at least sometime before switching to others.
I have been using ToS since TD Ameritrade acquired them as I happen to work at TDA and can't have accounts elsewhere. I love the platform but want to trade options on more futures than what is currently available per the list that sinpeople provided above. Having never explored other platforms, where is a good place to start?
Also, the founder of ToS Tom Sosnoff recently started a brokerage to partner with his Tastytrade network called Tastyworks. The platform looks a lot like ToS but with all of the Tastytrade philosophies interwoven into the technology. Looks cool, and they have just added futures recently.
Also, I am a new member here and glad to have found this site. I am passionate about trading and enjoy reading about ideas from others.
I work with DeCarley regarding short options, using the Zaner360 platform. The platform ist average, which is not of great importance for me as a longterm trader. But the service of Carley is the best I ever received, and this compensates some of the shortcomings of the platform.
Best regards, Myrrdin
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I'll give a vote to TOS, when it comes to options it's probably one of the best.
I used to follow and watch Tom N Tony @ tastytrade.com, but since they've parted ways with TDA / TOS, I don't really watch them much, if any.
I'd imagine their platform is really good as Tom was the creator (as previously mentioned on this thread) of TOS. I seem to recall seeing they had very attractive pricing for option trades, not sure about what they charge for options on futures.
You miss 100% of the shots you don't take. - Wayne Gretsky
I have been with TradeStation for a while, however since they suspended selling options on futures a few days ago, I am looking for a new broker. Anyone can recommend a good broker for international traders? I mostly sell ES, GC and KC.
i'am satisfied with Interactive Brokers as Broker and ToS (RealMoney Acount) only for charting and monitoring trades. TdAmeritrade dont accept european customers.
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ToS are not allowed to do any margin enabled business with EU residents. Doesn`t apply to cash accounts. And residents of Switzerland are not restricted in their options/futures trades in any way.
Interactive Brokers is a good broker albeit for ES trades with a grain of salt as they don`t use SPAN.
In 20 years of trading with 7 companies the best company I've worked with Futuresonline.com which is the discount division of Daniels Trading. Minimum SPAN and low commissions and no platform fees. I've had the least number of problems with them. I only have to call about minor errors about once a year.
The absolute worst was Tradestation for option selling. If you have tons of free time to argue with customer service over their mistakes then give them a shot!
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NinjaTrader Brokerage will be offering Options on Futures shortly. Same commission rates as currently published on our website.
Disclosure: This communication is sent to you by NinjaTrader, LLC, a software development company which owns and supports all proprietary technology relating to and including the NinjaTrader trading platform.
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We will be offering real time portfolio margining (SPAN) however there will be additional account minimums for premium sellers.
We will also have all exchange recognized option spreads including RFQ functionality for custom, exotic or unlisted spreads.
Theoretical pricing models are included as well as the ability to customize skews on a micro or macro basis.
Disclosure: This communication is sent to you by NinjaTrader, LLC, a software development company which owns and supports all proprietary technology relating to and including the NinjaTrader trading platform.
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I contacted Futuresonline.com just now and was told that if I want to do naked option selling I would not be eligible for the low commissions that Futuresonline.com has but instead would need to pay more commissions at Daniels Trading. Higher commissions might be acceptable for me in order to get away from the 3X margin that Tradestation is charging for my short options.
Hmm, that's odd. I started with Futures Online in 2015. I wonder if their policies changed. Did they say if they had an account minimum for naked selling? I started with $90K.
"Your account will be with the Daniels Trading side of the firm; it is the division that will allow the kind of option writing trading you described. The clearing firm for both sides is Gain Capital."
I told him my account with TradeStation is about 25K. I also have an account with Phillip Capital worth about 135K which I might want to transfer too, because I was told to expect a margin requirement increase next month.
I'm sorry to hear this will now have to retract my recommendation of Futures Online for option writing! What commission do they want to charge you at Daniels?
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I have been looking around for another brokerage and chanced upon this forum (excellent treasure chest filled with information!). I didn't want to hijack this thread but I couldn't start my own as this is my first posting. Sorry threadstater.
A little intro since its my virgin post. I am from Singapore. My experience trading selling futures options is limited. My success with it was probably luck with high odds (I follow James Cordier a lot).
Started options trading (buying) 10 years ago with OptionsXpress (now Charles Schwab). Then switched to Thinkorswim (TDAmeritrade now) for a few years. Began selling stock options and dabbled with selling futures options (better leverage comparing selling SPX vs ES).
Watched Karen the supertrader then followed James Cordier book (borrowed from public library) and have been using Interactive Brokers (cheap commissions) for the past 2 years. Realised that their margins are terrible about 6 months ago and decided to switch.
Looked at Charles Schwab again, then Saxo, Generic trade, Tradestation, Tastyworks (no trading futures options for those in Singapore), Lightspeed... It has either been high comms, data fees or high margins that has let me down.
I am with IB now. As mentioned, their margin rates are terrible (for some commodities).
Now the questions part. I have a few questions for those who are with Decarley.
Decarley seems well supported in this forum but it is a little complicated for me. I never had to choose FCMs or trading platforms. Zaner360 looks like good potential with iBroker on mobile as well. But Decarley's link for a demo is dead.
So a few questions for now.
1) With my limited experience, I have no idea what Futures Commission Merchants are. How do I choose one out of the many that Decarley offers.
2) I could not find information on data fees. Do we get real time data for free? Even from ICE?
3) I am used to free ACH transfers, I don't mind paying wiring fees but couldn't find information on these on Decarley.
4) Commissions - I suspect most are at self directed $3.50 rates. What is meant by "Per Side Rates (Options charged up-front)" Does it mean that selling 1 option (excluding exchange fees etc) is $3.50 x 2 = $7.00 (to open and close) and it is charged up front?
5) I understand that certain portfolio size are offered lower rates. Any idea what is the minimum size that qualifies a lower commission fee?
I have searched the forum but I could not find my answers. I suspect i'm the only person (fool) who doesn't understand the Decarley website (well English is not my native language in my defence )
Couldn't wait till Monday to speak to someone from the Decarley office cuz my mind is about to explode from the questions. Some help please?
Consider Tastyworks as well. Their commission schedule is better than most. I tested options execution (5+ contract spreads) on some of the heavly traded stocks and every time their execution happened sooner or TOS never did execute. I do not use IB or Decarley. I believe Tastyworks is getting ready to offer futures options and portfolio margin based on the email reply from them recently.
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Thanks for the reply Skidboot. I did sign up with Tastyworks. They don't allow foreigners to trade futures (yet). They offer limited futures products too.
I also use DeCarley and couldn't be more pleased - she answers all question promptly via email, her service is the best I have ever come across. I highly recommend her platform.
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how about options on futures, do they allow it, and is that a limited number too?
what futures do they allow you to trade?
their rates seem very good.
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just to answer my own q.: they do allow options on futures and so far they have some of the lowest commissions ($2.5 / 1 unit trade) - unless anyone knows a better alternative. However, they limit the number of instruments available.
Do you guys know what margins do they require?
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For options traders, I recommend one of the CQG platforms, Q Trader has the best bang/buck ratio of them, imo. They have a number of decent options tools standard and it is a low cost platform, and you can trade options on a dom, loading up multiple strikes with their tabbed doms (which is great in a fast moving market as you can set, for example, a few different strikes in ES calls or puts in $10 increments and just switch on the fly). I have traded options with both CQG and Rithmic platforms, Rtrader will do the job just fine too but most brokers using Rithmic won't allow selling options, only buying.
also for index traders I highly recommend trading exchange traded VIX spreads through CQG, they are liquid and easy to trade
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