Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I have a self directed IRA with OX. It has to go through a trustee like Millennium Trust (or others). Whenever I add or withdraw funds I have to go through Millennium. Otherwise I trade it just like I do my regular OX account.
Hi, i noticed deepdiscounttrading recommended by a few futures and fop traders on another forum, at least one mentionning he prefers it to ib to sell fop. Ron or other traders do u have any experience with them ? Their website show margin requirements for futures but no indication abt fop margin req. i like ib product range but the margin is worrysome indeed when one checks otm fop. Ox rates r a deal breaker though especially that on other products they offer no margin advantage
I use DDT as my main account exclusively to sell options on futures clearing through crosslands using the RTrader platform, been with them for about a year, they use exchange minimum SPAN margins. Been very happy with them. I also diversified into a second account with Optimus using the same platform, same margin arrangements for option sales, just as happy with them too but Optimus, bit more expensive on commission, frontload the RT commissions at time of sale, which is a disadvantage if you hold till expiry. DDT on the other hand charge 1/2 at entry and 1/2 RT at exit, no commission or charge if options expire worthless.
Hi Harvard,
I checked out DDT a while ago when i was looking for who to setup with and I was told the margins there for selling naked options were 200% of the futures initial margin at the time of order placement (so something like 6,710 for 1 KC option).
Is that what/how they apply margin, or did you have to negotiate with them for SPAN minimum only and not the 200%?
Cheers
Scott
Selling puts the same amount of money OTM as a call will usually have a higher ROI because of the lower risk. So I sell a lot more puts. It does vary by commodity.
That is especially true for ES.
An Apr ES put 300 OTM (1200) premium is 1.50. For a call 300 OTM (1800) the premium is zero. A 1615 call is about the same premium as the 1200 put but the margin is 3X higher so the ROI is 3X lower.
I don't usually sell too many oil calls because it's not worth the risk to make <$70. Higher than that maybe. But I also look back and say how many times in the last 20 years has oil spiked drastically because of an event? I can't come up with any. But that also doesn't mean it won't happen. Sometimes I think I am too risk adverse.
That is why I will do covered calls sometimes in oil. Selling the lower strike call and buying a higher strike call. The long call puts a limit on possible loss. The ROI% can be higher too if you have the correct spread between strikes.
Hedge funds usually are buyers of futures but I have sensed that they haven't been as long lately. They were really long early 2008.