SPX Credit Spread Trader

I prefer ToS to OX for the same reasons others have mentioned. I still have an account with OX and trade SPX spreads in both the OX and ToS account (long story but I like OXs P/L and position reporting better and kept one main account there).

I use Tradestation for futures trading and like it so far. I would not get any floor assistance with my SPX spreads at TS so I will not switch my option trading there. The platform is nice for technical analysis and the charts I have posted here recently on the SPX are from Tradestation. I feel that ToS and OX are worth the extra $0.25 at $1.25 v. $1.00 at TS.

I have been investigating option trading prop shops to get more leverage and shoot for larger trades but not as many option props as their are equity props...


Quote from Sailing:

Coach and others,

Now that you've experienced OX and ToS.... do you prefer one over the other for trading options exclusively?

I seem to get better fills and better service with ToS.

Also, TradeStation is getting into the game now. Their OptionStation is now included in it's FREE tradestation software provided you trade 50 option contracts a month. They also have no minimums or fees, and option contracts are $1. This is very appealing...

Any thoughts?

Murray
More...
 
Coach or others....

... an interesting thought...

Many times... someone on this board is selling or buying a contract, which others are selling or buying on the other side... and the MMs are making out like bandits.

For Example: someone bought a Jan 1200p for $1.20, and the best price I could get sell a Jan1200p on the same day within the same time frame for .70 ....the MMs are getting rich!

Here's my thought!

Is there a possibility of "trading" contracts, as opposed to buying and selling them. I'll go out on the limb here and suggest... could we create an "OptionEbay" service. This would essentially erase the b/a spread and trade options for their 'value'.

Your thoughts appreciated.

Murray
 
Here is the problem. For example, using that 1200 strike as an example, assuming I am selling the 1190/1200 spread and you are selling the 1200/1205 spread.

I want to sell the 1200 put and you want to buy it. Problem is of course I want to sell the 1200 put for as much as I can get and you want to buy it for as little as you can get. Our needs will be opposite and going in the other way from each other. If the b/a is $1.00/$2.00, I would love to sell at $1.50 and you would love to buy at $1.50 but no MM would do that really. They would rather I sold at $1.25 and then you paid $1.90.

The only way I can see it working is if we work with ToS to get the orders sent together and perhaps I sell for $1.40 and you buy for $1.60 and the MM still can make the $0.20 and we both get a better fill than we would hope for. I doubt that the MM would do that since they are not under any obligation to match those orders and will simply wait until that spread widens to make more money.

I can only see it working if ToS allows us to place our trades at the same time and their floor guy pushes to get both sides filled. so the MM makes a quick spread and opens and closes the position at the same time. Do not how viable that is..... but worth a look into if we all group together on ToS and see how it could work. Of course we would also have to use strkes near each other and the odds many of us choosing close stirkes like that is small since we enter positions at different times and with different numbers of contracts.

nice thought though....

Quote from Sailing:

Coach or others....

... an interesting thought...

Many times... someone on this board is selling or buying a contract, which others are selling or buying on the other side... and the MMs are making out like bandits.

For Example: someone bought a Jan 1200p for $1.20, and the best price I could get sell a Jan1200p on the same day within the same time frame for .70 ....the MMs are getting rich!

Here's my thought!

Is there a possibility of "trading" contracts, as opposed to buying and selling them. I'll go out on the limb here and suggest... could we create an "OptionEbay" service. This would essentially erase the b/a spread and trade options for their 'value'.

Your thoughts appreciated.

Murray
More...
 
Also, I think there might be a large imbalance as most of us who post are getting in and out around the same time and we're not taking the opposite side. However, there may be a lot of people who monitor this thread, who don't post, but do take the opposite side.


Quote from optioncoach:

Here is the problem. For example, using that 1200 strike as an example, assuming I am selling the 1190/1200 spread and you are selling the 1200/1205 spread.
More...
 
Murray,

How does OptionStation software compare with the TOS analytics tab?

Quote from Sailing:

Coach and others,

Now that you've experienced OX and ToS.... do you prefer one over the other for trading options exclusively?

I seem to get better fills and better service with ToS.

Also, TradeStation is getting into the game now. Their OptionStation is now included in it's FREE tradestation software provided you trade 50 option contracts a month. They also have no minimums or fees, and option contracts are $1. This is very appealing...

Any thoughts?

Murray
More...
 
Quote from rdemyan:

I like ToS much better. Better fills, better service than OX. Currently pay $1.25 per options contract at both OX and ToS.

Don't know about tradestation.
More...

How did you get $1.25/option. What commission fee schedule do you get ?

Thanks,
 
Quote from skanan:

How did you get $1.25/option. What commission fee schedule do you get ?

Thanks,
More...

Optionsxpress has an active trader discount and ToS will match it or has a similar program.

ryan
 
The customer service and past problems I have had with IB are the only reasons I will not go back to IB. Also, it is still a pain to simply view the entire chain with one simple click with all b/a and IV data. Lots of people are happy with IB but the new lower commissions still not enough to make me switch lol.

Quote from riskarb:

Or simply use IB at $.75
More...
 
The commission schedule I have at OX is the one set up by Chris Smith at TheOptionClub.com for members of his forum. This is the schedule that, if memory serves me correctly, ToS has agreed to match (as far as I know the account does not have to be an "active" trading account).

Quote from skanan:

How did you get $1.25/option. What commission fee schedule do you get ?

Thanks,
More...
 
You must log in or register to reply here.
Back
Top