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No offence to DeCarley but they looks very strange for me ....
For me best for options is TOS/DTA but only reason to not open account there is too high commissions. As far as i know there is promo offer there , something like no ticket and 1.5$ per side per contract but this is still too high for me.
Thank u again!
Ivo
Can you help answer these questions from other members on NexusFi?
I am afraid you will not get commissions of less than 1.5 $ per side (I assume 3 $ round trip) at RJO as a option seller (= limited number of trades). But let me know if you are successful.
Trading: Futures, spot FX, Energy Spreads Prop Firm
Posts: 61 since Jun 2011
Thanks Given: 16
Thanks Received: 61
not necessarily true. In terms of downside risks if you sell an option spread it depends on the type of spread. Some spread strategies have limited downside risk and others have unlimited.
Selling spreads have limited, defined risk. Selling naked does not, unless it's selling a naked put, which has the risk capped at the instrument going to $0. He was referring to naked options, not spreads.
Trading: Futures, spot FX, Energy Spreads Prop Firm
Posts: 61 since Jun 2011
Thanks Given: 16
Thanks Received: 61
I think we have to get the terminology correct here. You mentioned 'selling a spread'. I understand spread to mean entering into 2 or more simultaneous positions in different instruments. As you said 'selling' a spread I take that to mean making a spread (market making). The majority of these spread strategies are not limited risk (LR). A few of them are such as long straddle/strangle, long/short butterfly/condor and long wrangle however the majority of them are not LR.
Yes in his original post he referred to options not spreads. I answered his original question on portfolio margin and why it changes in real time. My post was specifically about your statement that 'selling spreads has limited defined risk' which i believe to be incorrect.
Are you possibly referring to entering into a credit spread? please explain. IF so this would be 'entering into a credit spread' and not 'selling a spread'.
Yes, I was referring to credit spreads, as opposed to selling naked. The credit spread, vertical spread, call/put spread, whatever you want to call it, is the safer, limited risk variation of selling naked options. Sorry if I wasn't specific enough.
Cant explain why DeCarley looks strange for me. May be i am wrong but ....
RJO has only options on futures as far i understood.
IB are great and they have all i need but their auto-liquidation algorithm is worst i ever seen. Add their secret margin formula and it can be nightmare.
You might want to open a second account - one for options on futures and IB (or someone else) for options on stocks.
There is another reason why I work with three brokers. I am concerned about counter party risk given the four bankruptcies in the FCM business in recent years. Thus, I have only about 1/3 of my capital with each broker. But this is of course also a matter of how large your account is.
