Flex Options Broker

H

Humble Investor

Hi,

I have an account with IB and I'm really happy with them but they don't offer equity flex options. Anybody knows any flex options broker (not interested in OTC stuff)?

Thanks.
 
On US equities. you don't have to trade in size anymore. SEC eliminated minimum contract requirements last year. Some flex series have open interest of 2 contracts but I'd probably trade(invest) anywhere between 100 to 1000 contracts at any given time.

http://optionsclearing.com/webapps/flex-reports

Contacted Optionshouse, Optionsxpress, Tradestation and Fidelity today. They all said no. Really strange. This is not some crazy OTC stuff. There is no counter party risk.

If someone knows a flex broker, please let me know.

Thanks
 
Flex is there mostly to optimize margin/capital for large institutional trades, I've done a lot of them. To trade any flex contract, you need an MM or anoter CP to make the other side. Guess what, "You will need to be trading real size for anyone to be interested" as minmike has eloquently put it.
 
Humble Investor said:
Hi,

I have an account with IB and I'm really happy with them but they don't offer equity flex options. Anybody knows any flex options broker (not interested in OTC stuff)?

Thanks.
More...

May I ask for an example of when listed options don't match your needs? I traded FLEX options many years ago. We loved them, as they had wider markets and more edge for the market makers, because there are less player involved.
 
As far as I can tell, the CBOE and AMEX have Flex options. On the Amex, there is a minimum. I'll inquire tomorrow to see if we have any platforms that can access these.

NYSE ARCA

FLEX OPTIONS
Flexible Exchange (FLEX) options are customized equity or index contracts that allow investors to tailor contract terms and enjoy expanded position limits for exchange-listed equity and index options. Like over-the-counter options, FLEX option strategies can be tailored according to target trading objectives.

FLEX options combine the benefits of contract customization with the advantages of listing and can provide investors with:
  • The ability to customize key contract terms, like size, exercise price, exercise style and expiration date;
  • Price discovery in competitive, transparent, auction markets;
  • A secondary market to offset positions;
  • Contract guarantee and virtual elimination of counter-party risk.
EQUITY-FLEX
At NYSE Arca Options, Equity-FLEX options are traded on selected common stocks, American Depositary Receipts (ADRs), exchange-traded funds and HOLDRS.
  • A minimum of 150 contracts is required to open a new Equity-FLEX series.
  • A minimum of 100 contracts is required to establish opening positions in an existing Equity-FLEX series.

INDEX-FLEX
At NYSE Arca Options, Index-FLEX options are traded on any index upon which options trade.
  • A minimum value of $10 million on the underlying index is required to open a new Index-FLEX series.
  • A minimum of $1 million is required to establish opening positions in an existing Index-FLEX series.
 
Robert Morse said:
May I ask for an example of when listed options don't match your needs?
More...
Longer expiration date. Sometimes I have been forced to just buy the stock instead of the option because there is no listed long term option available. I'd like options with 2 to 3 year expiration. I'm ok with wider spread as I don't day trade, my strategy is to buy and hold.
 
Humble Investor said:
Longer expiration date. Sometimes I have been forced to just buy the stock instead of the option because there is no listed long term option available. I'd like options with 2 to 3 year expiration. I'm ok with wider spread as I don't day trade, my strategy is to buy and hold.
More...

I would suggest you consider the listed options available and roll when it fits. I would say the biggest advantage of FLEX options is the ability to create a european option or to date an option just before or just after an event. You are not doing either and doing a 1 year option and rolling using a complex order when you choose to, maybe every 6 months might provide you a better result.
 
Robert Morse said:
I would suggest you consider the listed options available and roll when it fits. I would say the biggest advantage of FLEX options is the ability to create a european option or to date an option just before or just after an event. You are not doing either and doing a 1 year option and rolling using a complex order when you choose to, maybe every 6 months might provide you a better result.
More...

Yeah, forgot to mention. I trade on clinical trial announcements and some corporate actions as well but not too often. I need flex options to customize strike price and expiration date. I think I'll end up paying more if I roll. Most listed options have wide spread as well. I really don't want to roll every few months.
Does lightspeed offer Flex options?
 
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