quick word on TOS (went to softwear demo last nite) Yes they are really working to be #1 on web-based softwear so I'm sure they will have the best. New cool features on the platform I wasn't aware of. And they have several different fee structures...currently if you do a minimum of 20 contracts (per side in the case of spreads) you can get .95 with no tkt chg. That and the fact they don't charge for cancellations puts them very close to IB charges.
SPX Credit Spread Trader
- Thread starter El OchoCinco
- Start date
I decided to call Joel Blom, President of ToS, to discuss ToS making options on futures available. He explained to me that they will most likely eventually include them. I explained that our forum was beginning to include trading options on futures and he said he knows Coach Phil. I explained further that there are a lot of us here who would like to include them in our arsenal and that I was considering opening an IB account just to be able to trade options on futures.
Joel and I had a good discussion and I really like the fact that the president of ToS is so available, personable and interested in knowing how his customers feel.
It appears that one of the issues is that the clearing costs for S&P Eminis is about 2.5 times the costs for SPX. He did say that when trading on options on futures becomes electronic, then they will definately include them. I tried to make the case that if the customers want to trade the options on futures then they'll pay the higher commissions.
If anyone else is interested in applying some pressure you can e-mail Joel at:
joel@thinkorswim.com
or call him. I had no trouble getting through and he seemed quite interested in hearing what I had to say.
Joel and I had a good discussion and I really like the fact that the president of ToS is so available, personable and interested in knowing how his customers feel.
It appears that one of the issues is that the clearing costs for S&P Eminis is about 2.5 times the costs for SPX. He did say that when trading on options on futures becomes electronic, then they will definately include them. I tried to make the case that if the customers want to trade the options on futures then they'll pay the higher commissions.
If anyone else is interested in applying some pressure you can e-mail Joel at:
joel@thinkorswim.com
or call him. I had no trouble getting through and he seemed quite interested in hearing what I had to say.
Joel is a top-notch guy and I also enjoyed my chats with him and had him on my show once as well 
.
AS for option on futures, I thought the ES options were already electronically traded
.AS for option on futures, I thought the ES options were already electronically traded
For the ES credit spreads I used the maximum loss/risk to determine my % return since that is truly the most I am risking. Even though SPAN and prop haircuts require a smaller amount of margin, that changes eveyr minute as the market moves and in my mind, my credit and return is based on my actual risk which is the entire spread distance. I am sure I would have better looking numbers if I just used the minimun SPAN margin requirement to calculate returns
Coach,
I am trying to increase my leverage by adding a long leg ( I used to do naked write ) to increase my leverage. My long leg is not used for protection as I will never let the price goes below my short without doing anything.
Currently,
SPX Aug 1130 3.4 x 4.2
SPX Aug 1110 2.3 x 3.1
SPX Aug 1100 1.85 x 2.60
I put the credit spread for 1130/1110 with credit of $1.0, and 1130/1100 for $1.4. The orders have been staying for quite a long time, and it is not filled.
Do you think I am setting the credit right? What do you think about these trades? I am learning.
I am trying to increase my leverage by adding a long leg ( I used to do naked write ) to increase my leverage. My long leg is not used for protection as I will never let the price goes below my short without doing anything.
Currently,
SPX Aug 1130 3.4 x 4.2
SPX Aug 1110 2.3 x 3.1
SPX Aug 1100 1.85 x 2.60
I put the credit spread for 1130/1110 with credit of $1.0, and 1130/1100 for $1.4. The orders have been staying for quite a long time, and it is not filled.
Do you think I am setting the credit right? What do you think about these trades? I am learning.
I also had long chats with Joel on having ToS get options on futures. But the short answer is that it is really a clearinghouse and cost issue, not their own decision. They were options and futures traders so they love options on futures but they can only do it if the costs and expenses (setting up futures accounts, etc) is viable. I think as they grow, it will be easier to add those products the way IB has over time.
But ToS is defintiely the best in my opinion, I still have not had time to learn to use their tools lol. If they had options on futures and risk-based haricut, heaven...
But ToS is defintiely the best in my opinion, I still have not had time to learn to use their tools lol. If they had options on futures and risk-based haricut, heaven...
On the first spread (1130/1110) the mid is around $1.10 and with a wide b/a for the spread you might not get filled right away only shaving a dime. I see no rush to dive in today so leave the order there and see if it gets filled. If you need to get in today then you might need to take off another $0.10 to $0.20 at the most to get filled perhaps. However, let it sit today and see what happens.
Same with the second spread. The mid is around $1.50 or so and you are a dime off the mid in a very wide b/a spread. Let it sit but if you need to get in, take off another 10 or 20 cents.
Orders just off the mid have a lower chance of getting filled, but if you are patient and let it sit, the odds are, as long as the market has not swung to far away, you might eventually get a hit. I have let orders sit for hours to get filled since I was not trying to time the entry so perfectly. I had room to sit back and see if I get a fill. You can start shaving off a dime and re submit the order and wait and after a long time shave another dime to see if you get hit. The goal is not to get impatient.
Same with the second spread. The mid is around $1.50 or so and you are a dime off the mid in a very wide b/a spread. Let it sit but if you need to get in, take off another 10 or 20 cents.
Orders just off the mid have a lower chance of getting filled, but if you are patient and let it sit, the odds are, as long as the market has not swung to far away, you might eventually get a hit. I have let orders sit for hours to get filled since I was not trying to time the entry so perfectly. I had room to sit back and see if I get a fill. You can start shaving off a dime and re submit the order and wait and after a long time shave another dime to see if you get hit. The goal is not to get impatient.
It is not how far from the mid you need to go but how many of your children you pledge to those bloodsuckers to squeeze a @#$%ing dime out of them!