Option strategies

This is a discussion on Option strategies within the Futures & Options forums, part of the Markets category; Bulldozer I use IB and I got £30 and commission was £1.70. For margin I noted my opening balance and ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jun 20, 2005, 2:31pm   #25
 
osho67's Avatar
Joined Nov 2002
Bulldozer

I use IB and I got £30 and commission was £1.70. For margin I noted my opening balance and after trade it was less by £270 per contract. Any other way can I figure out the margin?

Thanks
__________________
A CANDLE LOSES NOTHING BY LIGHTING ANOTHER CANDLE
osho67 is offline   Reply With Quote
Old Jun 20, 2005, 3:49pm   #26
Joined May 2001
Quote:
Originally Posted by kriesau
What do you guys make of last Fridays LTOM EURO FTSE EDSP at 5138 when:
a) the cash market never traded above 5090 between 10.10 - 10.30
b) the market didn't trade above 5090 for the next two hours after the unmatched orders were executed
c) the market high for the day was 5098.5 at 2.45pm and the market failed to trade above 5100 all day.
We got a thread on that very subject running here......

http://www.trade2win.com/boards/show...1&page=1&pp=10

Hope this helps,
Steve.
stevespray is offline   Reply With Quote
Old Jun 20, 2005, 5:27pm   #27
Joined Jan 2005
Quote:
Originally Posted by osho67
Bulldozer

I use IB and I got £30 and commission was £1.70. For margin I noted my opening balance and after trade it was less by £270 per contract. Any other way can I figure out the margin?

Thanks
================================================== ===================
Osho,
Thanx 4 clarifying.
Marg used £270 for income of just £30 - costs = £28-30 pence. You have to wait until July xpiry to clear full amount! You need help friend! pronto!
You can do better than that if you go to UK brokers [on the marg]
click below and see debate; > Bulldozer . v . IB [ on IB and marg]

http://www.trade2win.com/boards/show...3&page=1&pp=10

That is one way of working out the margin, i use that method too. But to get the real figure i would need to ring them the NEXT day, cause they need to get it from the clearing hse and this info is normally available on the next day after the trade was filled.

Bull
Blessed is the person who uses wisdom and his God given brains

Last edited by bulldozer; Jun 20, 2005 at 6:24pm.
bulldozer is offline   Reply With Quote
Old Jun 21, 2005, 9:21am   #28
Joined Jan 2005
Quote:
Originally Posted by osho67
Bulldozer

I use IB and I got £30 and commission was £1.70. For margin I noted my opening balance and after trade it was less by £270 per contract. Any other way can I figure out the margin?

Thanks
================================================== ================

Osho,
I use UK Brokers i recieved 38 = £380 for 4625 strike[same strike as yours] on the Dec's contracts. Comms £3.50 per contract, MARGIN ONLY £715 AT FLAT RATE NO ADDITION ABOVE THE CLEARING HOUSE RATE!

Now lets look at it in the more sensible way! Your broker charges less on comms but a lot more % on the marg. if you did my trade with IB your marg will BE A LOT GREATER than mine.
Now, you have taken just 3 pts =£30! ..july to december is 6 months away, if you repeat your trade with IB at 3 pts a time up to December you would have taken 18 pts=£180 with 6 comms paid and with marg at more than 1000%.
Chalenge for you CAN IB match my deal? if they can or DO BETTER i will shift my whole 5 ACCOUNTS with them plus many other friends of mine who trade with the same broker as me.

Bull
Be smart and you wont get fooled again!
bulldozer is offline   Reply With Quote
Old Jun 21, 2005, 11:13am   #29
def
Joined Feb 2003
bulldozer you are comparing apples to oranges. Osho sold a cheap option at the prevailing market prices. I dont' think you could do better. it's one thing to debate his strategy but another thing when comparing margin levels for different months. If he chose to sell the Dec put, he would have rec'd 380 the same as you but with what could be lower maintenance margin levels.

initial margin on that strike is currently around 850 with a maintenance margin of 688. (I have no way to determine what the levels were yesterday). That means you have to maintain a balance of 688 to hold the position. This level is determined daily by the exchange. As expiration approaches and the market moves, this number will fluctuate.

Oshu,
to check real time margin before entering a trade, line up the order and right click on the entry line. a window wil pop up that will tell you the required initial and maintenance levels.
def is offline   Reply With Quote
Old Jun 21, 2005, 3:01pm   #30
Joined Jan 2005
Osho,
I'm showing you a better strategy how you could make more profits.
Doing your strategy you can only make a max of £30! Even if you do scalping strategy ur max will be 3pts.
If you keep repeating this type of strategy until december you will make £180. plus comms 6 times. $2.70 x 6 = $16.20.
Do you think doing the Dec's and reicieving £380 with same strike [4625] at £715 margin is a better deal and strategy? Total comms £3.50 with Marg at ZERO % above clearing house.

Can you ask your chosen Broker [we wont mention brokers name] if he can do the same deal for you? at the same margin ?


Ps. I believe Mr Def is an employee of your brokers. You can ask him if you chose to post to him

Bull

Last edited by bulldozer; Jun 21, 2005 at 3:21pm.
bulldozer is offline   Reply With Quote
Old Jun 21, 2005, 3:17pm   #31
Joined Jan 2005
Def your quote TO ME!!
"bulldozer you are comparing apples to oranges. Osho sold a cheap option at the prevailing market prices. I dont' think you could do better."
================================================== ============

I will wager you $1000 for $500 I can do better. If you are right i will give you $1000
and if you are WRONG all you need to PAY is $500. Or would you like higher stakes?
I'm open to any price above the ones i mentioned at 2/1.
$2000 against your $1000 or higher perhaps?
ADMIN PLEASE DO NO REMOVE THIS POST AS MYSELF AND DEF WANT IT TO STAY ON THE BOARDS. Please please please. He works for a US based Brokers and i dont work for any brokers but i use UK Brokers.


Bull
bulldozer is offline   Reply With Quote
Old Jun 21, 2005, 3:35pm   #32
def
Joined Feb 2003
this is silly. if oshu sold at 3 when the market is 3 offered, please let me know how you could have sold at a better price. personally i don't think selling naked puts is a good long term strategy but each is own.

I'll add though that i pointed out that the current maintenance margin on the dec put you sold at IB was 688 GBP earlier today. that is lower than the 715 you were required to pay yesterday.

finally, please do not put words in my mouth. I do not recall mentioning anything to you in regards to what the moderators should do with my posts. have a good day.
def is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
US option volumes grantx Futures & Options 7 Nov 1, 2006 5:04pm
Any option traders here use IB? LordGekko Brokerages 1 Feb 14, 2006 1:32pm
option trading ? alen Home Trader 18 Nov 9, 2005 9:43pm
option trading ? alen Discretionary Trading 0 Aug 16, 2005 12:37am
new to option davidlye18 First Steps 13 Feb 16, 2005 1:46am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)