User-Defined Exchange Traded Option Strategies - CQG v. CityTrader, ADM versus Wedbush

[i960]

BTW: I trade more futures spreads than options spreads, but you actually need an RFQ for a *fly* in the options spread book? That seems really odd to me.

 

[comintel]

There is nothing other than a single option order or a strategy order.

Of course the strategy (eg. fly of given expiry and strikes or anything else) may have already been created and be active, in which case it will already be quoted and you do not need to do anything other than trade it.

Software platforms such as TWS internalize this so you do not have to understand what is really happening, but on other platforms such as non-Pro T4, there is no way to execute a specific fly that has not already been created already by someone else (well actually you can call it in to the exchange). This makes such latter platforms completely unsuitable for trading options in my opinion (unless you buy the $500 a month Options Pro add-on).

 

[Robert Morse]

How is this for easy. take me less than 30 seconds. Then RFQ, then enter order.

 

[MattZ]

Matt,

I think you have a broader selection of Platforms and Clearing Brokers than anyone else at https://optimusfutures.com/Platform-Pricing.php.

I see you have several Tradestation Platforms and Tradestation Clearing listed. Is there any chance you could add the TradeStation Options+ platform as well, which is their white label of OptionsCity CityTrader? I know that you have CityTrader already through Wedbush, but I have a feeling that the Tradestation version could be offered at lower cost, because they charge no fees (!) under special offers to their own customers to use it (no routing fee, no platform fee) with commissions as low as 45 cents.
https://www.tradestation.com/promo/tradestationsalutes/
"A $0.45 per contract fee will apply for unbundled futures/futures options contract."
I realize that their normal commission in other offers of this platform is $0.65 (IRA), $1.20 (tiered) or $1.50 (standard) including platform and routing, but the fact that they can offer it to armed forces retired at $0.45 suggests to me that that is their real bottom line.

Also I think their intra-day margining may be better than others because I think it is pure real-time SPAN without these leg-counting exercises that others use.

Even if you cannot get the TradeStation white-label version, it might be favorable to use TradeStation Clearing with the original version of CityTrader that you already have.

We have no problem setting up the Options side with TradeStation. You are right, they use CityTrader for the Options side.

 

[MattZ]

ADM is not a good choice for a small retail account. They have a free platfrom called OAK, but they charge high commissions for smaller account vs other FCMs. They cater to larger accounts that want their balance sheet. We introduce to Wedbush. With permission from Wedbush, this is possible because neither WebICE or CME Direct are margin based. The FCM sets risk with a limit of Max order size and Max position size.

Bob

In my opinion, OAK along with the ADMIS portal could be a very good solution for Options traders.
The portal provides "What If" scenario that would show you the impact of Options on your margins.
The cost we provide would match standard retail rates applicable to the level of RT.

I think that no one can say that one solution is better than another. Every trader has specific needs that need to be matched accordingly. Sometimes they are very subtle differences.

 

[truetype]

In my opinion, OAK along with the ADMIS

Do you introduce to ADM? Equities also? What sort of minimum account size? Do they offer portfolio margin? Thanks.

 

[MattZ]

Do you introduce to ADM? Equities also? What sort of minimum account size? Do they offer portfolio margin? Thanks.

Yes, we introduce to ADM. We only do Futures with ADM.
Minimum account size is $10K.

 

[comintel]

We have no problem setting up the Options side with TradeStation. You are right, they use CityTrader for the Options side.

Wow that would be potentially very attractive because they have no routing or platform fees, compare to the other way of getting CityTrader through other FCM's which do have significant fees.

In fact I think this would be the lowest cost way anywhere to get OptionCity with its rich RFQ/UDS capbilities, assuming a commission rate of 50 cents, if that can be given as I think may be implied on your site.

On the other non-futures-options Tradstatation platforms, they do have a $99 a month fee (which you list at https://optimusfutures.com/Platform-Pricing.php) for a whole package of Backtesting data and platform, Portfolio Maestro, RadarScreen, etc. but they waive that fee if you have over 10 options trade round trips per month. Those tools are not really of relevance for Futures Options, but even if that fee does apply to a Futures Options account, 10 round trips per month is nothing once one is well underway on a platform.

So I am strongly tempted, but need to hold off the switch until the new year.

 

[comintel]

In my opinion, OAK along with the ADMIS portal could be a very good solution for Options traders.
The portal provides "What If" scenario that would show you the impact of Options on your margins.
The cost we provide would match standard retail rates applicable to the level of RT.

I think that no one can say that one solution is better than another. Every trader has specific needs that need to be matched accordingly. Sometimes they are very subtle differences.

Yes it definitely could be for some futures options traders, with its free platform (that may not include options though). I did try to look at it on the web, but I do not see any indication it has RFQ's/ UDS's. Without that it would be unusable for me because I trade options butterflies etc., for which you need those.

 

[MattZ]

Yes it definitely could be for some futures options traders, with its free platform (that may not include options though). I did try to look at it on the web, but I do not see any indication it has RFQ's/ UDS's. Without that it would be unusable for me because I trade options butterflies etc., for which you need those.

Right click inside any of the empty quote boxes on the OAK trading software and then you should see Strategies. Once you click on that you will see the predefined strategies. Once you choose your predefined strategy, you can request an RFQ.