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Good options on futures broker?
- Thread starter rmiller3
- Start date
Quote from uptickk:
Not to detract from the original question but I feel like I am missing something here with future options. Keep in mind I am a future options newbie (I âunderstandâ options in general as I trade them). Option commissions on equities are generally under $1 but future options are around $3. If you spread them that takes you up to $6 per spread. Are vertical spreads just not that popular on future options due to the commissions?
its not so much due to commissions I don't spread on ES options....you don't HAVE to spread. Remember its way to expensive to sell SPX options naked (you basically can't). With futures options you just need margin and its less if you are selling strangles/straddles so you are getting more bang for your buck. The you can either buy(or sell) the cash ES to hedge your trade. Futures options are best traded very short term and near term months (weeks)
Quote from uptickk:
Not to detract from the original question but I feel like I am missing something here with future options. Keep in mind I am a future options newbie (I âunderstandâ options in general as I trade them). Option commissions on equities are generally under $1 but future options are around $3. If you spread them that takes you up to $6 per spread. Are vertical spreads just not that popular on future options due to the commissions?
Futures options commissions are well under $3.00 a side with IB.
For the first 1000 sides IB charges $0.85 plus exchange and NFA fees. Drops to $0.65 a side after 1000 sides.
ES options are $1.41.
EUR options are $1.71.
Quote from jeb9999:
Futures options commissions are well under $3.00 a side with IB.
For the first 1000 sides IB charges $0.85 plus exchange and NFA fees. Drops to $0.65 a side after 1000 sides.
ES options are $1.41.
EUR options are $1.71.
IB option is cheap, but IB customer service is very very poor. In fact, one of the worst service.
An equity option = 100 shares... with a stock trading around $30, that's equivalent to $3000 face value.Quote from uptickk:
Not to detract from the original question but I feel like I am missing something here with future options. Keep in mind I am a future options newbie (I âunderstandâ options in general as I trade them). Option commissions on equities are generally under $1 but future options are around $3. If you spread them that takes you up to $6 per spread. Are vertical spreads just not that popular on future options due to the commissions?
A soybean option = 1 futures contract... which, at the present, is around $70000 worth of face value.
So, take that into account when looking at your commissions.
Quote from heech:
An equity option = 100 shares... with a stock trading around $30, that's equivalent to $3000 face value.
A soybean option = 1 futures contract... which, at the present, is around $70000 worth of face value.
So, take that into account when looking at your commissions.
Why are you defending high cost brokers?
You cannot justify the unjustifiable.
The stated market value of an options contract has nothing to do with what it costs the broker and the exchange to process a trade.
You pay the same commission to trade an SPX option worth $128,335 as a stock option worth $3000.
IB is far from the cheapest futures broker and IB's all-in rate per side for ES options is $1.42. Anyone paying more than IB's $1.42 a side for ES options is being robbed.
Quote from jeb9999:
IB is far from the cheapest futures broker and IB's all-in rate per side for ES options is $1.42. Anyone paying more than IB's $1.42 a side for ES options is being robbed.
Can you please direct me to where the price is listed as $1.42. It seems to be listed as $2.01, but there is a good chance I am not looking it up properly.
Thanks.