Can a retail trader make money in options on futures?

[Cdntrader]

Quote from andrasnm:

Is anyone making money trading options on futures? If so please let me know what broker you use, IB? or others? What market you trade etc?

Check out the Emini ES options on the electronic markets. The volume/liquidity is going through the roof. As others have said the opportunity is there like anywhere else.

The margin is different, but also more advantageous. And the ability to hedge overnight with the ES is comforting.

Personally I wouldn't touch the floor options for obvious reasons.


http://www.interactivebrokers.com/en/general/education/webinars/cmeMay2005.html

 

[OptionsWizard]

Quote from andrasnm:

Is anyone making money trading options on futures? If so please let me know what broker you use, IB? or others? What market you trade etc?

Yes.
IB.
mainly ES, ZN. Recently trying also EUR and ZG.

Stay electronic. There are big disadvantages for retail traders in the pits. Choose markets to trade based on the liquidity and bid/ask spread.

My impression is that many options on futures markets are gaining rapidly in liquidity....IB deserves a lot of credit for helping this happen.

 

[andrasnm]

I know maybe you are not trading them but what about other commodity markets like crude, gold, silver.....
Anyone trading options on these??......These are the markets that are being exploded, well a while back that is.......

Quote from OptionsWizard:

Yes.
IB.
mainly ES, ZN. Recently trying also EUR and ZG.

Stay electronic. There are big disadvantages for retail traders in the pits. Choose markets to trade based on the liquidity and bid/ask spread.

My impression is that many options on futures markets are gaining rapidly in liquidity....IB deserves a lot of credit for helping this happen.

 

[OptionsWizard]

Quote from andrasnm:

I know maybe you are not trading them but what about other commodity markets like crude, gold, silver.....
Anyone trading options on these??......These are the markets that are being exploded, well a while back that is.......

I'm not aware Crude has options trading electronically (not via IB, anyway). Gold is ZG I mentioned earlier. I'm sure silver has options as well, but didn't try it.

 

[ids]

No, there are no silver options on CBOT just yet. eCBOT (and IB) will offer it soon.

 

[dmcw]

Quote from ids:

Dear dmcw,
IB does offer floor options. It is quite sad that you are spreading misinformation here.

My apologies. I was under the impression that IB did not give their clients access to pit markets, including pit options. Since I was not 100% sure, I hedged my reply with 'I think'. It's not really 'misinformation'. I was stating my belief and it was written as such. You should consider getting into politics.

Question: how much does IB charge for a Big SP option, for example?

Best regards,

 

[MTE]

Quote from OptionsWizard:

Yes.
IB.
mainly ES, ZN. Recently trying also EUR and ZG.

Stay electronic. There are big disadvantages for retail traders in the pits. Choose markets to trade based on the liquidity and bid/ask spread.

My impression is that many options on futures markets are gaining rapidly in liquidity....IB deserves a lot of credit for helping this happen.

OptionsWizard,

Do ZN options live up to the liquidity of the underlying contract?

 

[ids]

dmcw,
Our commissions are published here: http://www.interactivebrokers.com/en/accounts/fees/commissionFutures-FOPs.php?ib_entity=llc

 

[dmcw]

Quote from ids:

dmcw,
Our commissions are published here: http://www.interactivebrokers.com/en/accounts/fees/commissionFutures-FOPs.php?ib_entity=llc

Follow up question to that: how do your clients obtain the bid/ask on floor options? Do they see that on the platform somehow?

It's an honest question. I really don't know.

Thanks

 

[ids]

Bids and asks on floor options are rare guests by obvious reason.