Best mainstream broker for options?

riskarb · Oct 5, 2006

Quote from momoneythansens:

Unable to properly margin broken wing butterflies etc. Really good for option traders!

FWIW, I have accounts with both IB and ToS.

Releasing butterfly poison

You shouldn't be trading those anyway.

momoneythansens · Oct 5, 2006

Quote from FullyArticulate:

https://cpm.theocc.com/
This makes it sound like CPM is still a pilot program. It'd be great to have equity option margining closer to SPAN.

It would be great if IB do introduce CPM but it does seem a little early for that. All they say is:

"IB Comments: We believe, that rule based margins will be replaced by portfolio margins by Nov."

Either way, it's got to be an improvement.

riskarb · Oct 5, 2006

Quote from momoneythansens:

It would be great if IB do introduce CPM but it does seem a little early for that. All they say is:

"IB Comments: We believe, that rule based margins will be replaced by portfolio margins by Nov."

Either way, it's got to be an improvement.

Greatest impact will be for the sub 20 delta wing sellers.

FullyArticulate · Oct 5, 2006

Quote from momoneythansens:

Unable to properly margin broken wing butterflies etc.

For whatever it's worth, IB claims they fixed this problem on 9/12/06. Here was the original "feature request", which was followed with a "fixed" message from IB.

"Calculate margin requirements for Broken Wing Butterflies based on the actual risk, not as two trades (debit spread + credit spread). 370/360/340 (1/2/1 ratio) is only $10 max risk (therefore margin), not $20."

I have no idea if this is the problem you were referring to, but I just stumbled across it on their web site.

ssmegner · Oct 5, 2006

[Hijacking thread]
Anyone attending Traders Expo in Vegas in Nov? If so we should hook.

momoneythansens · Oct 5, 2006

Quote from FullyArticulate:

For whatever it's worth, IB claims they fixed this problem on 9/12/06.

Thanks, good to know. It was a long standing grumble with some traders I know and seemed like a trivial software fix (don't they all). I don't trade them myself Riskarb will be glad to know; the embedded extra OTM short vertical in the position is not to my liking.

riskarb · Oct 5, 2006

Quote from ssmegner:

[Hijacking thread]
Anyone attending Traders Expo in Vegas in Nov? If so we should hook.

I will try to make it; an excuse to get a room at Red Rock and Wynn. We should meet at the Spearmint Rhino.

http://www.redrocklasvegas.com/spa/index.php

Wayne Gibbous · Oct 5, 2006

Quote from riskarb:

Yeah, that's solid. I am trying out a new one... termed "the stranger" I sit on my hand until it falls asleep and...

lol

Hope your other hand doesn't find out!

stereo70 · Oct 5, 2006

riskarb wrote:

I am trying out a new one... termed "the stranger" I sit on my hand until it falls asleep and...

Is this original material? LMFAO

riskarb · Oct 5, 2006

Quote from just21:

IB are changing to position based marging from rule based in November according to the comments on suggestion 1046 on their voting system. didn't say which november though!

Let's be sure to bump any new developments from rule to risk margining.