Is this a good rate?

V

volatilitypimp

Traders keep 100% payout profits after fees.

monthly option execution $0.50 per contract. volume based rebate starts @ 50k contracts.

Equity execution(all-in)
0-1MM $0.005 / share
1-5MM $0.004
>5MM $0.003

20-1 equity leverage 5-1 option lev.

Traders charged .0025 for capital used overnight over and above their existing capital.

For example. I have 10K on deposit and hold a $30K position for 30 days. How much in dollars will I be paying for 20K for the month? Can someone walk me through the calculation? My math isn't adding up right.

I will also have a small monthly desk fee($163). Is this a competitive overall rate? I trade mostly options and this company (LLC) which will remain nameless, specializes in options, which I need.

TIA
 
C'mon, over 100 views and nothing?

I=Pxrxt

So, 20,000 x .0025 = $50 per night, lets say I hold for 30 days. Am I to pay $1,500 per month? That comes to 18K for 12 months, 90% Vig!

This can't be right, can it? That seems like a hell of a lot of viggorish to me.
 
What up Vigorish Pimp?

Get them to .004 and the first million.

Jack up your leverage to 30-1

And waive your desk fee with size on your part, and its not bad. Fight for every .001

Quote from volatilitypimp:

Traders keep 100% payout profits after fees.

monthly option execution $0.50 per contract. volume based rebate starts @ 50k contracts.

Equity execution(all-in)
0-1MM $0.005 / share
1-5MM $0.004
>5MM $0.003

20-1 equity leverage 5-1 option lev.

Traders charged .0025 for capital used overnight over and above their existing capital.

For example. I have 10K on deposit and hold a $30K position for 30 days. How much in dollars will I be paying for 20K for the month? Can someone walk me through the calculation? My math isn't adding up right.

I will also have a small monthly desk fee($163). Is this a competitive overall rate? I trade mostly options and this company (LLC) which will remain nameless, specializes in options, which I need.

TIA
More...
 
More specifically, I do 1-2 mil a month and have on average somewhere around .0035 all-in, and can get as much leverage as I need, so your deal could be improved. But since it's a firm you have no previous relationship with, you could probably sit with what you have until you prove you're not a risky trader.
 
Thanks for the responses guys! However, I don't trade much stock. Some of the only way I trade stock is if I'm flipping against long gammas, synthetic straddles, etc.

I realize they charge what interactive brokers charge .005, I am more interested in additional option leverage.

They also said they would waive the desk fee, plus no front end fee since I'm trading remote, which I think is pretty sweet.

The big expense I'm worried about is the vig. My strategy is such that I like to hold many positions for 30 days or so. Perhaps .0025 interest on overnight leveraged funds is normal, I don't know.

Let's say I write an iron condor on $XEO. It costs me 40K in margin for the month and I have 10K of my own capital in the position. So it costs me 30K x .0025 = $75/day x 30 days= $2,250. Let's also assume I earn $1 per spread so I make 10K at the end of the month.

So, instead of 10K/40K=25% return it comes to 10K-2,250 or $7,750/40K=~19% return (barring no adjustments less any commission). Hmmm...If I get paid 100% payout, this doesn't sound too bad I guess.
 
Name of the firm? You can PM me if you'd like. Just interested in knowing as I'm still trying to gather as many firms for options trading as I can before I do an update to my list.
 
pm Riskarb if he's still around. He seems to know quite a bit about options and could probably direct you to some firms. Or Maverick74. He's got his finger in alot of pies. I dont trade options aside from the crude hedge so I cant speak too intelligently on that.

Quote from volatilitypimp:

Thanks for the responses guys! However, I don't trade much stock. Some of the only way I trade stock is if I'm flipping against long gammas, synthetic straddles, etc.

I realize they charge what interactive brokers charge .005, I am more interested in additional option leverage.

They also said they would waive the desk fee, plus no front end fee since I'm trading remote, which I think is pretty sweet.

The big expense I'm worried about is the vig. My strategy is such that I like to hold many positions for 30 days or so. Perhaps .0025 interest on overnight leveraged funds is normal, I don't know.

Let's say I write an iron condor on $XEO. It costs me 40K in margin for the month and I have 10K of my own capital in the position. So it costs me 30K x .0025 = $75/day x 30 days= $2,250. Let's also assume I earn $1 per spread so I make 10K at the end of the month.

So, instead of 10K/40K=25% return it comes to 10K-2,250 or $7,750/40K=~19% return (barring no adjustments less any commission). Hmmm...If I get paid 100% payout, this doesn't sound too bad I guess.
More...
 
Kudos on your list JM.

Good luck

Quote from JMowery1987:

Name of the firm? You can PM me if you'd like. Just interested in knowing as I'm still trying to gather as many firms for options trading as I can before I do an update to my list.
More...
 
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