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Software and Brokers for Options Trading

Sunday, September 18, 2011

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People frequently ask which software, data providers, and brokers we use for trading options. The answer changes frequently as providers add new features and new contenders emerge, but here’s what is working for me right now: For trade execution, I route just about everything through Interactive Brokers. The last time I checked, their options commissions were among the lowest in the industry. They also have excellent market access, for when you need to sell strangles on Japanese government bond…

Trading Options Spreads on Futures

Wednesday, March 11, 2009

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CME Group published a paper last August detailing some of the spread types supported on Globex (“Options Spreads on the CME Globex Platform“).  Most of the usual suspects are supported, but one of the most important features added in recent years is the ability to create user-defined and “generic” spread types: Generic spreads can be defined with up to 40 legs and allow users to create delta neutral strategies. Generic spreads work in conjunction with the UDS:…

Commissions for Option Spread Traders

Thursday, December 4, 2008

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Commissions are a cost of doing business, and as such shouldn’t be ignored.  It’s worth the trouble to spend a few minutes checking that your commission structure matches with your trading style, and that you’re getting the best rates available. But paying too much attention to commissions can be a double-edged sword: there’s a certain type of trader we hear from pretty regularly, the sort who obsesses about commissions, 60/40 tax treatment, exchange fees, etc., such that they seem to…

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Jared Woodard specializes in trading volatility as an asset class. With over a decade of experience trading options and other volatility products ... Read More

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