Direct access options broker

This is a discussion on Direct access options broker within the Brokerages forums, part of the Commercial category; Dear Bull, What would you say a fair percent return on your capital employed....

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Old Oct 11, 2005, 5:26pm   #9
 
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osho67 started this thread Dear Bull,

What would you say a fair percent return on your capital employed.
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Old Oct 11, 2005, 5:53pm   #10
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Originally Posted by osho67
Dear Bull,

What would you say a fair percent return on your capital employed.
================================================== ====

Good question!
But it depends on many factors:

1. Which options your doing [index or stock american style or eu style]
2. How far OTM your positions are or if ITM or ATM.
3. Knowing the marg rules and use them to your advantage and NOT thru fear.
4. How much hedge your using and when you put hedges in! and what types of hedge.

5. If my performance return is below 30% per annum on option writing? I would consider that as poor.

6. I reckon you have lost more than £10K of potential income on your account over 3 yrs, cause of fear of margin-call liquidation rules Thats just my opinion! I'm sure you would agree wiv what I'm saying Writing naked put options you deserve good rewards for the courage or risk you take. I too am a put writer but in footsie index but i make sure i use my capital to the full potential and i make sure i have some reserve cash elsewhere incase of emergencies! if U know what i mean?
I have been on margin call around 6 times every year, wiv 3 days grace added in, by broker to adjust or reduce or convert positions or add cash in order to take out marg-call.
I dont need to bull s hit you! i have no reason or gain to do so.

Your a short strangler player! and i fink you know what I'm saying above is not bull s hit!

Bull

Last edited by bulldozer; Oct 11, 2005 at 6:07pm.
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Old Oct 11, 2005, 5:54pm   #11
 
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Yawn, here we go again, Bulldozer stepping in with his size 12's, txt spk and smilies slagging off IB

Forgetting about IB = Good/Bad whatever, your quote "Get a broker who has good common sense rules! wiv good margin rules and regulated with the UK FSA!! " can't be left unchallanged.

As has been pointed out to you before iirc, when you go over margin, it's your broker who is at risk.

Please read the next sentence carefully

Any broker who consistantly allows a client/clients to breach exchange minimum requirements is demonstrating very poor risk control (unlimited downside if the position gets progressively worse and client fails to meet the requirement) and is in danger of being fined (maybe barred?) by the SFA.

Understand? Given your views on risk vs reward, do you think that is a good trade? If your broker gives you a bit of leeway then so be it. But it seems to me that your definition of a "good" broker is seriously skewed.


Anyway, the original question was "I am searching a cheap broker for direct access options trading apart fro IB. Any idea who comes close to IB in commission rates? And will also accept UK resident accounts. Thanks"

My answer is no.



Anticapating your "LOL you kid go and learn about options" typical response when someone challanges you, here's my background . . .

1985 - 91 : LTOM Equity options Extel rated broker/analyst (vividly remember put writers getting blown out of the water over the Crash)

1991 - 94 : LIFFE Futures & options trading (on and off the floor)

1995 - date : IT guy sitting on various prop trading desks
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Thanks! The following members like this post: osho67
Old Oct 11, 2005, 6:12pm   #12
 
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osho67 started this thread Thanks A Dashing Blade for going to the original question. Your reply is helpful.
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Old Oct 11, 2005, 7:13pm   #13
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Originally Posted by A Dashing Blade
Yawn, here we go again, Bulldozer stepping in with his size 12's, txt spk and smilies slagging off IB

Forgetting about IB = Good/Bad whatever, your quote "Get a broker who has good common sense rules! wiv good margin rules and regulated with the UK FSA!! " can't be left unchallanged.

As has been pointed out to you before iirc, when you go over margin, it's your broker who is at risk.

Please read the next sentence carefully

Any broker who consistantly allows a client/clients to breach exchange minimum requirements is demonstrating very poor risk control (unlimited downside if the position gets progressively worse and client fails to meet the requirement) and is in danger of being fined (maybe barred?) by the SFA.

Understand? Given your views on risk vs reward, do you think that is a good trade? If your broker gives you a bit of leeway then so be it. But it seems to me that your definition of a "good" broker is seriously skewed.


Anyway, the original question was "I am searching a cheap broker for direct access options trading apart fro IB. Any idea who comes close to IB in commission rates? And will also accept UK resident accounts. Thanks"

My answer is no.



Anticapating your "LOL you kid go and learn about options" typical response when someone challanges you, here's my background . . .

1985 - 91 : LTOM Equity options Extel rated broker/analyst (vividly remember put writers getting blown out of the water over the Crash)

1991 - 94 : LIFFE Futures & options trading (on and off the floor)

1995 - date : IT guy sitting on various prop trading desks
================================================== ===================

DB,

UK brokers are NOT taking any risk at all!! Plz allow me to tell/teach you why!?
Firstly i can only speak on the brokers i use.
1. They give you a form to fill in wiv MANY questions.
2. You also have to state your NET worth [cash, assests,property/homes, stocks cetificates, bonds etc]
3. They do not take on novices wiv less than 6 months expireince to trade short strangles.or any naked positions.
4. They need to be FULLY convinced you know what your doing and how to get out of sticky situations, convert, hedge etc.
5. You also sign a document that allows them to take legal action against your assets.
6. If you dont pass the questionair they will not allow you to trade FUTURES or NAKED OPTIONS.
7. These forms are SET by the FSA regulations.and if the brokers are in breach of these rules? yes they are fined and if they do it again perhaps more bigger fines or loss of license.
8. If it was against the fsa rules to let a client trade naked?! Then over 70 % of brokers are in breach of FSA rules. I was on margin call wiv a big London broker many times and i have allways settled the problem on the third day of grace or before.
9. If a client has £1Ml in OPTION account and positions lose £2Ml in a crash [like 1987]] and that client has over £2ml in assests?! does the broker suffer any loss?

9. You sound that your a person wiv common sense?! and wiv good backround too. Tell me how many traders went bust trading naked options/ short strangles on footsie index in the last 20 yrs? in percentage terms plz you dont need to be precise! just give a rough percentage?

Osho,
I think IB can handle another 2-4 accounts from you? i dont see that you have any problems? Plus you say you are more than happy wiv their service! Unless of course you are looking for a broker wiv dffrt rules?

Bull

Last edited by bulldozer; Oct 11, 2005 at 7:22pm.
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Old Oct 11, 2005, 7:36pm   #14
 
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osho67 started this thread I am here to make money and that is the only narrow focus. IB is exceptionally suited at the moment to fulfill my purpose. IB 's platform is superb. Even in US many brokers donot allow options on futures. Thanks for your 30% estimate which has convinced me that I am not undertrading. My aim is to reach 4% per month.
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Old Oct 11, 2005, 7:48pm   #15
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Osho, dashing blade,
Do all brokers in the USA have same rules and same margin rules for their clients? If your answer is NO!? My next question is why NOT?

The same questions also on UK Brokers plz.

If the FSA make the rules for brokers? than it stands to reason that the rules should be the same for all brokers innit? Dont get me wrong! I'm saying some rules are set by FSA and some NOT!

I am interested to know your reply to this post and my previous post.

Bull

Last edited by bulldozer; Oct 11, 2005 at 7:56pm.
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Old Oct 11, 2005, 8:48pm   #16
 
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osho67 started this thread Dear Bull

I donot understand why you have this fixation in your mind about margins. Suppose IB is not doing right, Their clients power -which is vast- will make them do it correctly. At the moment I am exploiting IB and making money because of their practically nil charges.
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