I need weekly Cash Settled options on AMZN, or other equities, or anything :-(

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yosuji198

Hi Community.

I trade weekly option spreads and have some strategies that work for me. Problem is, Monday to Thursday I have enough margin to do 3x my current strategy (thus get 3x the profit), but come Friday my margin drops to zero because it's expiry day and my broker, IB, calculates how much money I would need to potentially take delivery of hundreds of AMZN, GOOG, CMG, BKNG, TSLA, etc. shares.

Also - although all my option spreads have a defined risk to them, I failed to close one OTM AMZN short last week that ended up ITM after hours - and so Monday morning the stock moved premarket and I wake up to a $1,000 loss on it.

I'm desperate for cash settlement. I know index options are cash settled but I don't like the pricing on them. IB has FOPs like gold and oil but they're all monthly expiries (anyone know any that are weekly?).

I'll trade weekly options on anything - futures, CFDs, FOPs, equity/index - anything that I can cash settle and if the pricing is right. Does any broker offer any derivative product that would allow me to effectively trade the equity option but settle in cash?

Thanks!
 
And as a follow-up, yes I could close the trades Friday morning but my spreads can be thin sometimes, and so waiting until the last 30 minutes of trading, where my short has lost almost all its value, would be much better. Put simply, it wouldn't be worth it for me to close early. I currently close at 3:30pm (but IB is often also liquidating my positions in the afternoon and sometimes they're liquidating positions that make no sense and messing up my spreads for that week or the next week lol)
 
stepandfetchit said:
Have you considered SPX? & if so, what is issue with "pricing"?
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I've looked at SPX. Generally I would like 3 to 4 strikes in the 30 deltas. Despite its high-flying price, SPX usually only has 2. NDX is much better because it tends to have 3 strike prices in the 30 deltas :thumbsup:

Thanks.
 
Have you looked into trading > 7DTE, allowing more 30delta
yosuji198 said:
I've looked at SPX. Generally I would like 3 to 4 strikes in the 30 deltas. Despite its high-flying price, SPX usually only has 2. NDX is much better because it tends to have 3 strike prices in the 30 deltas :thumbsup:

Thanks.
More...
Reading between the lines, you enter trades with <= 7DTE? --can you not alter your qty mix to effectively achieve your desired Delta? Your response implies you have identical issue with SPY on your requirement for "pricing", correct? -- Still not clear on a problem.
 
Thanks for the comments.
stepandfetchit said:
Have you looked into trading > 7DTE, allowing more 30delta

Reading between the lines, you enter trades with <= 7DTE? --can you not alter your qty mix to effectively achieve your desired Delta? Your response implies you have identical issue with SPY on your requirement for "pricing", correct? -- Still not clear on a problem.
More...
Thanks stepandfetchit - Yes I like to initiate trades at 7DTE. In the future I can look into adjusting qty
 
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