Best broker to trade short naked OTM futures options

[chartman]

Quote from deltahedge:

don't blame our beloved OTM option seller he's just exercising his God-given right to sell naked within the risk parameters the clearing firm requires.

People has to realize brokerages are in the business to execute trades for commissions. Period. They want traders that are buying/selling futures/options outright where the risk and turnover is higher. They do not want OTM spread traders where a position maybe held until expiration. Not enough revenue. In reality all buying/selling of outright futures/options are naked transactions unless it is a hedge account.

 

[Achill]

Let us know who you choose so we may avoid your clearing firm.

If so, stay away from TOS, IB and PFG Best

Could anybody provide a list of clearing firms since 2000 which were previously at http://www.cmegroup.com/tools-information/find-a-broker/broker-directory-na.html but blew up later?

 

[atticus]

Quote from deltahedge:

I LOLed. However don't blame our beloved OTM option seller he's just exercising his God-given right to sell naked within the risk parameters the clearing firm requires. If the clearing firm blows up I wouldn't blame him, but the morons at the clearing firm.

Exactly.

He took he best firm out of his equation, IB. If you want to avoid liquidations due to variation requirements, then don't sell naked. or trade less leverage.

 

[Achill]

Even if you trade less leverage, even safe leverage, you can't be sure that under certain market conditions with some volatility spike your position wouldn't be autoliquidated when you least expect it.

 

[chartman]

Quote from Achill:

Even if you trade less leverage, even safe leverage, you can't be sure that under certain market conditions with some volatility spike your position wouldn't be autoliquidated when you least expect it.

That is true with all naked futures and options including outright positions as well as spreads.

 

[atticus]

Quote from Achill:

Even if you trade less leverage, even safe leverage, you can't be sure that under certain market conditions with some volatility spike your position wouldn't be autoliquidated when you least expect it.

Correct, there is no prophylaxis for stupidity. Say you're short ES puts into a 9/11 type tragedy. Write it off as a fuck-up and tell the clearing firm that you're sorry? I suggest you trade covered, or go with RJO, but you will pay through the ass.

 

[darwin666]

yup.. i have never seen an explanation for this but ., I SEE NO liquidity for options on FUTURES. looks like the big boys only trade the FUTURES directly.