Options on Commodities Floor Traders

[heech]

Quote from trading spaces:

What are the liquid commodity options on the screen?

Anything that has volume is liquid. WTI CL has anywhere from a 3-6 cent spread depending how volatile the underlying is, and you can get filled 50-100 lots without a problem. NG has a very tight spread almost always, and you'll never get filled except at th bid/offer. HO has a ridiculously wide spread.

Grains have a wider but reasonable spread, not too hard between the ask/bid... and best of all is quoted even overnight (altho spread grows). Equities also have reasonable tight spreads, especially ES.

In the NYBOT softs, non-serial month options are usually quoted but with a fat spread. Only place IMO where option pits still very relevant.

 

[hen12y]

Quote from trading spaces:

What are the liquid commodity options on the screen?

ICE Brent and Gasoil are always much tighter from market makers or brokers than on screen for info.

 

[heech]

Quote from hen12y:

ICE Brent and Gasoil are always much tighter from market makers or brokers than on screen for info.

Yea, I'm very upset about this actually. Wish I had a direct route to market makers able to make me a tight (< 10 cent) spread on brent options.

But just to be clear: there is no physical floor trading for these ICE energy products, correct?

 

[trading spaces]

Apparently corn options has a pit and a screen with 25% of the volume on the screen. What about other commodity option markets?

 

[hen12y]

When the IPE shut down it all went screen based, the only open outcry pit left in london is the London Metals Exchange.

The Nymex pit is still open along with a few others i cant remember off the top of my head over stateside, but thats about it i think!

 

[trading spaces]

What about cotten? ICE website is showing 250k options traded in July but I cannot get any prices in IB tws. Is it still on the floor?

 

[heech]

Quote from trading spaces:

What about cotten? ICE website is showing 250k options traded in July but I cannot get any prices in IB tws. Is it still on the floor?

Non-serial months are traded on the screen, but you'll still get better fills on the floor.

 

[trading spaces]

IS this the same for sugar and coffee on ICE/NYBOT?

 

[Messi007]

Quote from heech:

Yea, I'm very upset about this actually. Wish I had a direct route to market makers able to make me a tight (< 10 cent) spread on brent options.

But just to be clear: there is no physical floor trading for these ICE energy products, correct?

. No, they had a electronic trading hub near the nymex building, but the closed a few weeks ago. But ICE option market markers are still thriving at the nybot floor.

 

[jfmiii]

bump