Experiences in trading options on overseas markets

[bellenuit]

I am in my twelfth year of trading options in the U.S.

I trade for about an hour each night, sometimes every second or third night. In summer I trade in the morning before 8am.

I don't trade the ASX anymore... Much... Sometimes when I am bored I will trade SPI, BHP and CBA but really, my money works harder in the U.S.

Hong Kong isn't bad... Can quite find the right markets in Europe, otherwise I would be all over it.

I have just dipped my feet in the water with US options trading with IB. I have to date only used writing of covered calls and usually trade for the first few hours of trading after the market opens. Writing covered call means I don't have to really do anything once my call is bought. Either it expires or is assigned.

What I still haven't worked out is what actions need to be taken if you are the taker of a call or put and wish to execute. Do you have to specifically do something to execute before expiry (which will be middle of the night Perth time) or can you set it up to automatically execute at expiry if in the money. This is specifically using IB.

 

[Sharkman]

if it's ITM at the close on expiry day it auto-exercises. if you want to exercise early you have to specifically send an early exercise order thru TWS, but in practice chances are that you'll rarely want to do so, as you'd be giving up all the remaining extrinsic. you'd only early exercise calls right before the dividend if the dividend exceeds the remaining extrinsic, and puts if the interest you'd receive on the proceeds from now to expiry exceeds the remaining extrinsic.

 

[procras]

I have just dipped my feet in the water with US options trading with IB. I have to date only used writing of covered calls and usually trade for the first few hours of trading after the market opens. Writing covered call means I don't have to really do anything once my call is bought. Either it expires or is assigned.

Hi guys, I'm also looking at switching to US options using IB. Was planning on starting with a cash account and am wondering what options strategies are allowed.
Obviously no naked positions but I'm getting conflicting answers from support on what else is allowed. Some say covered calls and cash secured puts only, others say risk defined spreads are ok .

Any help much appreciated.