Anyone trading KOSPI 200 or Nikkei 225 Index Options?

[tonylim]

Anyone trading KOSPI 200 (K200) or Nikkei 225 (N225) Index Options? I am currently using Interactive Brokers (IB) to trade these two Index Options. I am rather unsatisfied with IB due to the unreliable platform and combo order execution issue for these two options.

Any other brokers to recommend?

 

[risknav]

Anyone trading KOSPI 200 (K200) or Nikkei 225 (N225) Index Options? I am currently using Interactive Brokers (IB) to trade these two Index Options. I am rather unsatisfied with IB due to the unreliable platform and combo order execution issue for these two options.

Any other brokers to recommend?

I used to trade the KOSPI 200 index options (K200) until late last year when IB made a clearing change and took away trading privileges for those and all overseas index options in Canadian-based accounts – horrible change but they had some reason to do it, never explained to me though.

I still primarily trade the Nikkei 225 options on futures (SGXNK) listed on the SGX, thankfully Canadian accounts can still trade futures options more-or-less worldwide.

Now back to your topic, I find IB execution, data (quotes) and commission prices to be unbeatable.

You can find better data (for charting) out there, but with IBs API, you can keep IB for the above reasons and combine it with a top-notch data provider if your strategy demands advanced charting and/or tick-based data. I have to say though, since you’re looking specifically at the options I doubt you would be, right?

 

[tonylim]

I wasn't looking for really advanced charting or tick-based data. In fact, I am happy with daily chart. I only use daily/weekly/monthly chart for my option trading.

Here is an example of K200 Chart. About 1 weeks of market data down. After they fixed, the 1 week of data is gone completely. See chart.

For Combo Order Execution, more details here : http://theoptionsjourney.blogspot.sg/2014/03/difficulty-in-trading-combo-order-for.html

 

[NickNLD]

Hi,

I read your blog. Good info and interesting to read how someone else is trading.

Regarding IB's index prices (SPX, NDX....): I happen to have problems with Native Index Prices in TWS when I connect my charting software (NinjaTrader) to it. They just blank out... Only Calculated Index Prices are shown, whatever they may be.

TWS says that Native Index Prices can only been seen in real-time. There is no historical data for them. When you compare real-time SPX data from CBOE with the Calulated Index Price form IB, they differ. I don't know what to make of it.

Cheers

 

[tonylim]

I used to trade the KOSPI 200 index options (K200) until late last year when IB made a clearing change and took away trading privileges for those and all overseas index options in Canadian-based accounts – horrible change but they had some reason to do it, never explained to me though.

I still primarily trade the Nikkei 225 options on futures (SGXNK) listed on the SGX, thankfully Canadian accounts can still trade futures options more-or-less worldwide.

Now back to your topic, I find IB execution, data (quotes) and commission prices to be unbeatable.

You can find better data (for charting) out there, but with IBs API, you can keep IB for the above reasons and combine it with a top-notch data provider if your strategy demands advanced charting and/or tick-based data. I have to say though, since you’re looking specifically at the options I doubt you would be, right?

risknav,
since you trade Nikkei 225 options on futures (SGXNK), do you refer to N225 Index chart? Do you have the same problem as me, as describe here : http://theoptionsjourney.blogspot.sg/2014/04/interactive-brokers-n225-index-charts.html

 

[risknav]

risknav,
since you trade Nikkei 225 options on futures (SGXNK), do you refer to N225 Index chart? Do you have the same problem as me, as describe here : http://theoptionsjourney.blogspot.sg/2014/04/interactive-brokers-n225-index-charts.html

Hey Tony,

I have the bad tick on my chart, I don’t know if it derived from the SGX or IB, but certainly anyone at IB will have that too. However;

Since those options on futures trade and are valued against the future, when I need to review the chart I just refer back to the future itself. Yes, this would not be ideal for longer term charts, but it does the job for medium and short.

One thing to keep in mind, for all Nikkei options (SGX or otherwise – one caveat being GLOBEX NIY serial options, but they don’t trade yet) is that they settle based on the Osaka Exchange SQ (Special Quotation) which is calculated based on the opening price of all 225 components the Friday following the Thursday option expiry.

This official settlement price is posted on the Osaka Exchange website after the Friday cash market close, however Reuters and/or Bloomberg usually get it out in some market update story an hour or so after the Friday cash market opens.

 

[tonylim]

Hey Tony,

I have the bad tick on my chart, I don’t know if it derived from the SGX or IB, but certainly anyone at IB will have that too. However;

Since those options on futures trade and are valued against the future, when I need to review the chart I just refer back to the future itself. Yes, this would not be ideal for longer term charts, but it does the job for medium and short.

One thing to keep in mind, for all Nikkei options (SGX or otherwise – one caveat being GLOBEX NIY serial options, but they don’t trade yet) is that they settle based on the Osaka Exchange SQ (Special Quotation) which is calculated based on the opening price of all 225 components the Friday following the Thursday option expiry.

This official settlement price is posted on the Osaka Exchange website after the Friday cash market close, however Reuters and/or Bloomberg usually get it out in some market update story an hour or so after the Friday cash market opens.

Hi risknav,

Thanks for your reply. I have got confirmation that the bad tick came from IB. But they are not going to do anything about it.

Thanks for explaining the Special Quotation to me. I already got hit on March contract, details here:
http://theoptionsjourney.blogspot.sg/2014/03/i-received-assignment-notice.html

Fortunately, I got hit in the early stage of my trading option journey. The contract size was not big. I suffer a lost that didn't hurt too much to the monthly profit. But big enough for me to remember it hard. And adjust my training plan accordingly.