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Writing Options?


Great Guy

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Yup, that's me :)

Yes, I write options. For brokers I use Interactive Brokers(IB), and TastyWorks.(TW). 

TW offers the nicest platform, with low account size limits, free data, and lower commisions, but they only offers dollar denominated accounts and reporting which may be a pain depending on how you do your accounting. I'm planning to drop TW because of the awkward accounting. 

IB has higher capital requirements, but offers sterling denominated accounts, and allows you to trade just about anything that's tradable across all markets worldwide. You can hold different currencies and instruments in the same account too, so it's good for hedging.

 Depends what you're looking for really, and whether you're going to be accounting for your p&L as capital gains/losses, or trading income.  Options writing can count as either, depending on how regular/mechanical you are about it.  

If you're counting it as income, IB is far more convenient as you can generate sterling Mark-to-Market statements for the financial year, which is is basically you profit/loss for the year.

If you're after a cheaper, nicer to use platform, don't mind a dollar only account, and don't mind tracking individual positions in a spreadsheet, TW could be the way to go.

 

 

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One percent
4 minutes ago, The XYY Man said:

Never mind just saying it pal.

Write it down on paper mate...

 

XYY

I’m getting cross now 

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@MvR is there a website where you can get option prices? I used to use the liffe website however they don't appear to provide prices....

As a matter of interest what equities do you write? I used to write FTSE 100 shares.

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31 minutes ago, Great Guy said:

@MvR is there a website where you can get option prices? I used to use the liffe website however they don't appear to provide prices....

As a matter of interest what equities do you write? I used to write FTSE 100 shares.

I only trade options on US stocks and futures, since they're the ones that have the liquidity I need.  I'm fairly sure you can trade UK/Liffe options through IB, and maybe get free delayed prices, but the market for these isn't liquid enough for my purposes and the spreads are too wide.  High liquidity, narrow spreads and low commissions are vital for my style of trading, else I'd lose the statistical / probabilistic edge options writing provides. 

In terms of instruments, I trade options on major US stocks, ETFs and some futures -oil, gas, gold, and oil products like diesel, heating oil etc. Occasionally things like soya beans and wheat too.

Commodities have the advantage of high volatility combined with a tendency to trade within a range, so you can collect decent premiums, but involve more risk as they're large contracts.  Stocks a quite volatile too, so give good premiums, but one can get caught out with big and/or trending moves.  ETFs are least volatile, so yield lower premiums.

The main thing is to have a diverse range of positions and strategies, so some help out when others don't do so well. 

Ive actually eased back on the options trading in recent months after a poor start to the year ( down 5%) and the fact Im focusing on other projects right now, but will be re-engaging again once we get some volatility back into the market and VIX picks up a bit.  I've also shifted some funds into my investment account to start building positions in some miners and utilities, as discussed in DB's deflation/reflation thread.

I believe @sancho panza trades UK/Liffe options, or used to anyway, so he may know more about Liffe quotes and whether you can get them via IB.

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sancho panza
9 hours ago, Great Guy said:

@MvR is there a website where you can get option prices? I used to use the liffe website however they don't appear to provide prices....

As a matter of interest what equities do you write? I used to write FTSE 100 shares.

 

8 hours ago, MvR said:

I only trade options on US stocks and futures, since they're the ones that have the liquidity I need.  I'm fairly sure you can trade UK/Liffe options through IB, and maybe get free delayed prices, but the market for these isn't liquid enough for my purposes and the spreads are too wide.  High liquidity, narrow spreads and low commissions are vital for my style of trading, else I'd lose the statistical / probabilistic edge options writing provides. 

In terms of instruments, I trade options on major US stocks, ETFs and some futures -oil, gas, gold, and oil products like diesel, heating oil etc. Occasionally things like soya beans and wheat too.

Commodities have the advantage of high volatility combined with a tendency to trade within a range, so you can collect decent premiums, but involve more risk as they're large contracts.  Stocks a quite volatile too, so give good premiums, but one can get caught out with big and/or trending moves.  ETFs are least volatile, so yield lower premiums.

The main thing is to have a diverse range of positions and strategies, so some help out when others don't do so well. 

Ive actually eased back on the options trading in recent months after a poor start to the year ( down 5%) and the fact Im focusing on other projects right now, but will be re-engaging again once we get some volatility back into the market and VIX picks up a bit.  I've also shifted some funds into my investment account to start building positions in some miners and utilities, as discussed in DB's deflation/reflation thread.

I believe @sancho panza trades UK/Liffe options, or used to anyway, so he may know more about Liffe quotes and whether you can get them via IB.

Go to the page below.Then register.

http://www.ice.if5.com/MyAccount/Login.aspx?ReturnUrl=~\ViewData\Default.aspx

Then go to London Equity & Index options

http://www.ice.if5.com/ViewData/EndOfDay/LdnOptions.aspx

As MvR says ,the single equity stuff isn't that liquid,but if you're writing options for a bit on top of the divi,it's a viable trade.SHort term trading -you have to stick to the really liquid areas of trade.

 

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  • 2 weeks later...
On 22/06/2018 at 18:18, The XYY Man said:

Well aren't you the nosy Parker...

 

XYY

I have several pens. Some are Parkers. Some people don't like pens, but I do.

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1 minute ago, The XYY Man said:

I know you can mate.

Another colleague at work has just got his beginner's licence - and knowing my interest in short-wave, he is chewing me to join the club he attends in Sunderland.

But I've always been a listener rather than a transmitter - mainly because a terraced house doesn't really lend itself to hf antennas.

My long-wire often garrottes the fucking window-cleaner when he does the back-bedroom...!!!

;)

 

XYY

You should get your licence anyway. Go to the club. Be enlightened. You won't meet many women, but there you go, and for the women out there, it's free chat, and you will meet men, but not good ones.

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19 minutes ago, MrPin said:

You should get your licence anyway. Go to the club. Be enlightened. You won't meet many women, but there you go, and for the women out there, it's free chat, and you will meet men, but not good ones.

It's not what I meant, you meet some good people with technical knowledge, and they all seem friendly. The only licenced XYL I know is American, and I met her through a guitar forum. Most of the ladies get into it because their partner does. I have never heard lesbian Geordie Morse, BTW, but I bet it sounds dirty!:CryBaby:

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