Where can I trade options on futures?

[fireindresden]

Which broker allows individual accounts to trade options on futures?

I looked at Optionsxpress and Think or Swim and they don't have that capability as yet.

I wanted to trade options on futures as I have been told they are less riskier way to play the futures markets.

Thanks.

 

[teun]

IB

 

[MTE]

Quote from fireindresden:

...I wanted to trade options on futures as I have been told they are less riskier way to play the futures markets...

Well, that depends on how you trade them.

Personally, I'd say options offer a different way to play the market, which doesn't necessarily has lower risk.

 

[fireindresden]

Quote from MTE:

Well, that depends on how you trade them.

Personally, I'd say options offer a different way to play the market, which doesn't necessarily has lower risk.

Can you tell me your personal reasons why options on futures are not necessarily lower risk than playing straight futures?

I have heard varying viewpoints in regard to this, and was wondering why you thought it wasn't a safer method.

 

[MTE]

Quote from fireindresden:

Can you tell me your personal reasons why options on futures are not necessarily lower risk than playing straight futures?

I have heard varying viewpoints in regard to this, and was wondering why you thought it wasn't a safer method.

As I said, it depends on how you trade them. If you sell naked options, for example, then that's not less risky.

The liquitidy of options is also lower so you are more likely to incure slippage.

With a futures contract all you need to worry about is the direction, with options you need to get the direction, volatility and time right to make money.

On the other hand, options give you greater flexibility in terms of profiting from various makret conditions.

So, as I said, options offer a different way not necessarily a lower risk way.