Recent content by IB Kevin

IB offers butterfly, calendar, straddle, strangle, and vertical spreads on futures options such as ES & ER2. We also offer delta-neutral (future option vs. underlying future) spreads. These spreads may be entered either via the TWS, or our Options Trading Desk (for orders larger than 100...

Yes, IB now supports delta-neutral futures options tied to the underlying futures for ES, ER2, NQ etc. Just use the combo template like you would for any other spread, input the delta, futures price, and futures expiry that you want to use. TWS will then produce the future-tied option price.

If you do not have access to TWS, you may also want to consider using our voice brokerage desk for your option orders. For order sizes of 100 contracts or larger, we offer verbal quotes and executions, and will contact multiple liquidity providers in an effort to find price improvement or...

Price improvement on NDX options is often available, probably as a result of competition. Since NDX options are listed electronically on multiple exchanges, and some trading floors make quality markets for large orders, everybody competes for your order based on execution price. Pre-trade...

Interactive Brokers’ Options Trading Desk now supports voice brokered quotes and executions for large size (100+ contracts) orders in NDX options. IB customers can call our desk to get real time quotes prior to trading, which may increase the opportunity for price improvement on your...

Damnit is correct. Small orders are typically filled .20 from the midpoint only when a) it is no longer the midpoint, or b) another customer order takes you out. Also, remember that you are basing your midpoint calculation on an electronic quote that may not accurately reflect the real market...

Sorry, just SPX at this time.

Currently, SPX is the only open outcry pit where IB supports voice brokerage. We provide pre-trade quotes as well as executions to customers who trade in order sizes of 100 contracts or greater.

You are correct that the markets need to be probed, b/c the mid-point of the displayed market is not always the true fair value. The best way to do that is to get a firm quote from the pit so you have information prior to exposing an order, rather than giving this info to the market makers...

When SPX goes 'index hybrid' on 9/25, there will still be only one electronic quoter, which rotates between 5 large market making firms, so spread width may not change much. However, booked orders will be able to be traded electronically vs. the current system of floor brokers yelling to...

"IB Kevin and Stratergy, Based on your experience, can you give some guidelines on bid/ask spreads for larger size orders, for example 100, 500, and 1000 lots outright and then the same for spread orders? Thanks - appreciate the info." One; It really depends on volatility, delta, and...

While SPX markets are wide on the screen, they are very tight if quoted verbally. Access to the tight markets via voice broker is typically available only if you trade in relatively large size of at least 100 contracts. Traders dealing in smaller sizes may be better off in screen-based...

Interactive Brokers recently launched its Options Trading Desk to support voice brokered quotes and executions on S&P 500 index options. We strive to get the best execution for your trades by providing direct access to pit brokers who handle orders exclusively for IB clients. Benefits of...