Options on ASX (Australian) stocks?

[plugger]

Hoping someone can point me in the right direction. I'm currently trading Canadian and U.S. stocks (Cdn mostly). I'm looking to diversify into Australian stocks as it would fit nicely with a lifestyle change. I'm TOTALLY new to this and looking to start slow.

Can anyone provide me with a good data vendor who can provide me with real time quotes, charting and news for the ASX. I currently use IB for my trading but am not too fond of the charting, etc and only use them for order execution. Oh yeah, I don't want to pay an exorbitant amount.

Any and all help greatly appreciated.

 

[nravo]

Quote from plugger:

Hoping someone can point me in the right direction. I'm currently trading Canadian and U.S. stocks (Cdn mostly). I'm looking to diversify into Australian stocks as it would fit nicely with a lifestyle change. I'm TOTALLY new to this and looking to start slow.

Can anyone provide me with a good data vendor who can provide me with real time quotes, charting and news for the ASX. I currently use IB for my trading but am not too fond of the charting, etc and only use them for order execution. Oh yeah, I don't want to pay an exorbitant amount.

Any and all help greatly appreciated.

Sorry, I use IB and although the charting is substandard, for my needs it's ok. Good luck on the ASX. I have been trading it for six months and don't particularly care for the SPI nor the fact that options contracts are for 1000 shares instead of 100 nor the small price of many of the stocks. It's hard for a nonlocal to get a grip on this particular market and will promptly drop it from my portfolio next year. PLus the ASX data feed is like $35 a month and commissions are about 50% to 100% percent higher than in the US. Aussie bonds look tempting, if you buy into decoupling theory. If not,. then shorting the AUD (and taking some short-term pain, for sure) might be a nice long-term play, keeping in mind the short interest you will be paying, too. Any other thoughts about the ASX or differences between the US are welcome. Been thinking of writing about this.

 

[riskfreetrading]

Quote from Steve_IB:

I posted this on the announcement thread:

Further to our recent launch of Australian equities. Interactive Brokers is now offering the ability to short stock, and to trade the exchange traded options on the Australian stock exchange (ASX).

- Commission at A$1.88 per contract plus Australia Clearing House (ACH) fees of A$1.12 per contract
- No minimum commission per trade
- Quote request functionality is available
- Ability to trade spreads native to the exchange, e.g verticals, straddles, buy-writes are all available
- Ability to write options
- Data feed is included in the ASX Stock Feed
- Sign up for options trading permission via account management

(due to SEC restrictions the options are not available to US residents)

Steve<

Is there a way to get around this "(due to SEC restrictions the options are not available to US residents)".

For instance what if one register a non-US company, and trade under it. Would this be a possibility? Also what if one opens a subaccount in an existing account, and have a non-us resident trade it. Is this possible as well.

Also, what is the multipler of the index ASX options? Are they 100 or 1000. It seems to me that a 100 multiplier would be better.

Thanks

 

[riskfreetrading]

Quote from daddy'sboy:

Hobo take nravo's advice.
Aussie options are pretty illiquid except for about 10 companies and even these are pretty illiquid unless close to the money and front month. I do trade them because I live here (australia) but mostly trade US options for obvious reasons. But I do have the currency risks to contend with. Why anyone outside Australia would want to trade aussie options when you can trade US ones instead is beyond me.
db

There is a reason, but I cannot say it.

 

[nravo]

Quote from riskfreetrading:

There is a reason, but I cannot say it.

Ok, understood, if you have an edge, strategy or information on a particular ASX stock, then by all means leverage up. I only trade them (as covered calls or the occasional naked put) because I am living here for a couple years, and the time difference is a killer. I mainly traded US options in the states. It's a very poor substitute, I am learning -- liquidity, costs, contract sizes, all are a pain, at least for me. A US citizen can trade ASX options, but only if they establish residency here in Australia, as I have done. And that isn't easy, as it requires a work visa. A corporation formed here? Would that suffice? Interesting question. I imagine it would, but be prepared for a lot of e-mailing back and forth on IB, lost e-mails, confusion and hassles. It took me three months to convince IB that a US citizen, under SEC rules, could indeed trade options here, if they could prove even temporary residency.

 

[plugger]

Quote from nravo:

Sorry, I use IB and although the charting is substandard, for my needs it's ok. Good luck on the ASX. I have been trading it for six months and don't particularly care for the SPI nor the fact that options contracts are for 1000 shares instead of 100 nor the small price of many of the stocks. It's hard for a nonlocal to get a grip on this particular market and will promptly drop it from my portfolio next year. PLus the ASX data feed is like $35 a month and commissions are about 50% to 100% percent higher than in the US. Aussie bonds look tempting, if you buy into decoupling theory. If not,. then shorting the AUD (and taking some short-term pain, for sure) might be a nice long-term play, keeping in mind the short interest you will be paying, too. Any other thoughts about the ASX or differences between the US are welcome. Been thinking of writing about this.

Thanks for the reply. I certainly see what you mean about the commissions being higher but for myself I think it would be a good fit. I've traded Cdn stocks for quite some time and prior to IB's arrival in Canada, the commission rates were high ($29 a trade).

Is there a third party data service anyone would recommend specifically for stocks?

 

[riskfreetrading]

Quote from nravo:

Ok, understood, if you have an edge, strategy or information on a particular ASX stock, then by all means leverage up. I only trade them (as covered calls or the occasional naked put) because I am living here for a couple years, and the time difference is a killer. I mainly traded US options in the states. It's a very poor substitute, I am learning -- liquidity, costs, contract sizes, all are a pain, at least for me. A US citizen can trade ASX options, but only if they establish residency here in Australia, as I have done. And that isn't easy, as it requires a work visa. A corporation formed here? Would that suffice? Interesting question. I imagine it would, but be prepared for a lot of e-mailing back and forth on IB, lost e-mails, confusion and hassles. It took me three months to convince IB that a US citizen, under SEC rules, could indeed trade options here, if they could prove even temporary residency.

Thanks, and I hope you are enjoying the warm weather. Man it is cold where I am-- I envy you!

 

[nravo]

Quote from riskfreetrading:

Thanks, and I hope you are enjoying the warm weather. Man it is cold where I am-- I envy you!

Truth be told, Sydney is overrated as a place to live; it's not bad, but it's not a world class city like NY, London, Paris, Tokyo, Hong Kong. And the weather is worse than you think. But then my permanent base is Boca Raton, Fl. Hard to beat that for climate, save for the hurricanes. So go to FL. Heck of a lot closer and cheaper than Sydney.

 

[nravo]

Quote from plugger:

Thanks for the reply. I certainly see what you mean about the commissions being higher but for myself I think it would be a good fit. I've traded Cdn stocks for quite some time and prior to IB's arrival in Canada, the commission rates were high ($29 a trade).

Is there a third party data service anyone would recommend specifically for stocks?

You may want to ask/post on IB's Asian bulletin board.

 

[mokwit]

Metastock Quotecenter carries ASX stocks and options. $135/month for an institutional grade data and charting package. There are others for ASX and other main Asian markets- Quotepower??

I found eSignal Asian data was corrupt and I doubt they have fixed it.