Best options software?

[baostini]

Does anybody know what the best platforms to trade options are? also does anybody know of any complimentary software to trade options (software that calculates implied volatility and stuff like that)?

Thanks guys

 

[daveyc]

I use thinkorswim by tdameritrade. Open a paper trading account for free. I think you will find they have all the tools you will need and then some.

 

[baostini]

thank you, daveyc

how about an options broker? Full service if possible. know of any?

 

[rmorse]

This would all depend on your needs. To give you a suggestion for a platform I would need to know:
-if you a full time trader or part time.
-How active you are.
-Do you need access to the complex order books.
-your experience and the platforms you've used before
-your assets toward trading
-Reg-T account or CPM

This is really just the beginning. We are Introducing Brokers to Merrill Lynch Professional and Penson Financial and offer a selection of professional broker neutral platforms. Send me an email with as much information as you'd like to provide me and I'll give you a call.

Bob

 

[daveyc]

thank you, daveyc

how about an options broker? Full service if possible. know of any?

Do you mean you want advice on what trades to take/make? I think if you are going to get into the world of options (professional gambling) its probably best to learn your own strategies.

Also, just to add, there are standard margin accounts and portfolio margin accounts. There are account minimums and a simple test for PM, if you meet the requirements, this is the the only way to go IMO. I only trade back ratios and unbalanced butterflies and could not trade the size in a standard account safely.

 

[colion]

Does anybody know what the best platforms to trade options are? also does anybody know of any complimentary software to trade options (software that calculates implied volatility and stuff like that)?

Thanks guys

ThinkorSwim and Option Oracle

 

[rmorse]

I can help....but I would need to talk to you to find out your needs.

Bob

 

[baostini]

I can help....but I would need to talk to you to find out your needs.

Bob

Thks Bob.

At the moment my needs are quite simple. I am conducting some research on profitable options strategies and i need a good full service options broker in the United States, to talk to about volumes (both electronic and OTC), commissions and software. I have not yet gotten to the point of actually talking to a broker yet, just was wondering if anybody had a few names. As soon as I get to the point of communicating directly with a broker, I will be sure to stay in touch with you.

 

[baostini]

Do you mean you want advice on what trades to take/make? I think if you are going to get into the world of options (professional gambling) its probably best to learn your own strategies.

Also, just to add, there are standard margin accounts and portfolio margin accounts. There are account minimums and a simple test for PM, if you meet the requirements, this is the the only way to go IMO. I only trade back ratios and unbalanced butterflies and could not trade the size in a standard account safely.

what is difference between standard margin and portfolio margin?

 

[Patricia12]

Hi baostini, always remember that one platform can not be best for all. If any platform is working fine and best for other then its mean is not that same platform will same work for you. Because, it might be that your trading requirements are different than other.

 

[rmorse]

We are a full service options broker in the United States who introduces professional traders to two prime brokers(Penson Financial and Bank of America Merril Lynch). We offer 4 option/equity platforms. We offer commissions based on volume and would have to talk to you before pricing your business.If you expect to be active and can fund a Customer Portfolio Margin account, we should talk.

Bob

 

[baostini]

We are a full service options broker in the United States who introduces professional traders to two prime brokers(Penson Financial and Bank of America Merril Lynch). We offer 4 option/equity platforms. We offer commissions based on volume and would have to talk to you before pricing your business.If you expect to be active and can fund a Customer Portfolio Margin account, we should talk.

Bob

I will make sure to remember to get in touch with you first as soon as it is time for me to start contacting brokers about this business. At moment I was just looking for a few extra names and contacts. I have already written down your info however.

 

[rmorse]

what is difference between standard margin and portfolio margin?

Reg-t margin is cash based. It looks at max loss, and wants you to have enough cash for at least half that loss. Customer Portfolio Margin is risk based. It "shocks" a portfolio to determine margin. eg: long $100,000 of stock

Reg-t Margin: $50,000
CPM: $15,000

So, in this case, CPM shocked the position up/down 15%, common for single equities.

To receive this lower margin, the account holder must have experience with equities and options, understand the risk of short options and have a regulatory min of $100K in their account at all times. Most brokers that offer CPM require much bigger account size.Anywhere from $150K to $15M.

Risk Based Haircuts Overview

Bob

 

[baostini]

Hey Bob,

any chance you know what the over-the-counter market for single US stock options is like?

are the volumes much higher or much lower than exchange traded volumes?
are the commissions much higher?
do the prices vary a lot from electronic markets?
does your brokerage cover them as well?

thank you

 

[rmorse]

In the old days, OTC option volumes were very high. Now between FLEX options and regular options, I'm not sure why anyone would do OTC with counter party risk and lack of liquidity. I have no idea what those volumes are, but I never hear anyone talking about them anymore.

Bob

 

[baostini]

thks. so FLEX options are exchange traded nowadays as well? how does that work? don't exchange traded products need to be standardized?

 

[rmorse]

FLEX options were the exchange/occ response to OTC options. They are some what standardized and not all Prime Brokers will clear them. They have been around for many years. The CBOE has an electronic book for it. They are OCC products so you don't have to be concerned with counter party risk.

CBOE - FLEX Options

bob

 

[daveyc]

what is difference between standard margin and portfolio margin?

Portfolio margin is based on the risk in a trade and for standard margin you need to have enough cash available to handle the max loss. That said, that doesn't mean you can go nuts and trade the max on your PM acct because you still have to manage the buying power and maintain acct minimums (100k). When the market is moving fast, like this week, buying power can evaporate and you could be restricted to closing orders only. Bottom line, PM is the balls but you got to be sensible and you will need enough experience to trade with this type acct but this is the only way IMO to really make some bank.

 

[rmorse]

Portfolio margin is based on the risk in a trade and for standard margin you need to have enough cash available to handle the max loss. That said, that doesn't mean you can go nuts and trade the max on your PM acct because you still have to manage the buying power and maintain acct minimums (100k). When the market is moving fast, like this week, buying power can evaporate and you could be restricted to closing orders only. Bottom line, PM is the balls but you got to be sensible and you will need enough experience to trade with this type acct but this is the only way IMO to really make some bank.

I agree. Leverage is a tool that you have to use properly. Without it, you can't make a living trading.

 

[baostini]

so practically speaking a standard margin account is for a home trader wanting to start out, while a portfolio margin account is for the experienced trader with a lot of money to invest or for the financial firm? or is it the other way around?

do standard margin accounts have a minimum?