OptionsXpress Australia

[legout]

Let me know if you find it!! IB may eventually have it, but they didn't during my brief stay.

There is OptionGear put out by Hubb that may do what you are looking for with the Aus market, however, it is expensive, and I have heard (don't know if it's still true) that it only works with their on-going data subscriptions. Not sure if it works intra day though.

I'm sure this is one of a few reasons so many Aus options traders snub the Aus market in favour of the US. I feel brokerage (for lots of 10 or more) is becoming more in line on the higher priced shares, especially as we have 1000 lots per contract vs. 100 in the US.

But ASX fees on top of brokerage + hefty data fees still needs improvement, IMO. I don't like the night shift and so have worked with the Aus market - and and just use what is available to make it work. That said, I would love to have something like TOS (Think or Swim) provide for their clients in the US which would make life so much easier!

Cheers

Thanks Sails,

$4000 dollars! You weren't kidding it's expensive (optiongear). Just looked at it. Crazy price.

I've decided to just start paper trading with a broker that has iress platform and not worry about IV. Verticle spreads aren't as sensitive to it, anyway, I'll just look for high probability trades, and live without all the bells and whistles for now. If I start making money, I'll get the pricey tools later on.

At least iress has Graphs of option risk profile, that's something. Then I can compare buying/selling different strikes to see which graph returns a better breakeven point. THIS IS IMPORTANT in this style trading.

I'm going to look for a broker that gives access to the platform for a free evaluation period without having to open an account, fund it, then get the software to test.

Hello Legout, welcome to ASF

Thanks RichKid!

legout

 

[sails]

Thanks Sails,

$4000 dollars! You weren't kidding it's expensive (optiongear). Just looked at it. Crazy price.

I've decided to just start paper trading with a broker that has iress platform and not worry about IV. Verticle spreads aren't as sensitive to it, anyway, I'll just look for high probability trades, and live without all the bells and whistles for now. If I start making money, I'll get the pricey tools later on.

At least iress has Graphs of option risk profile, that's something. Then I can compare buying/selling different strikes to see which graph returns a better breakeven point. THIS IS IMPORTANT in this style trading.

I'm going to look for a broker that gives access to the platform for a free evaluation period without having to open an account, fund it, then get the software to test.

Thanks RichKid!

legout

You can get IV in Iress - while I'm not sure of it's accuracy, it gives the general idea. Into a chart, just type stock code + IV eg BHPIV. Line chart works best with daily - but candles work OK with weekly and monthly.

Also in "Options Monitor", there is a "Volty" heading - doesn't seem to be very useful, however, I think the most reliable is in the "Option Valuation". The IV in the left panel is paced on Option Price in the middle panel. So, it you work out the approx mid price and type it in there, you will see the IV in the left panel change. To make the rest of the greeks in the left panel change, you then need to put that updated IV into the "Volatility" field in the middle panel. Seems a bit messy - could be a java problem with my PC - so might work differently for you. Also, the fields in the middle panel can all be changed - helps to give some clues on what might happen under different condisitons. Anyway, just some ideas for you to play with. Check out the help files - that's where I found this info.

I also often use the "Volatility Surface" Hoadley IV calculator (end of day after about 5.30pm when the ASX have updated their theroetical prices) and this shows IV by month and strike. Not sure how realistic the ASX prices are though, but again, it gives the idea.

Last, but certainly not least, check out this thread: https://www.aussiestockforums.com/forums/showthread.php?t=8223 Post #6 has the link. It may be more what you are looking for..

Anyway, gotta run!


PS RichKid - your Q is a bit more complicated - will get to it over the next couple of days!

 

[RichKid]

..........PS RichKid - your Q is a bit more complicated - will get to it over the next couple of days!

Thanks Sails, when you have time is fine, I'll keep giving feedback about IB as info comes to hand on the IB thread....SteveIB doesn't visit as often and customer service at IB are taking their time to reply to me. Hopefully these exchanges of info will help other readers of ASF become better informed.

 

[sails]

Hi RichKid,

Yes, there was a major problem with one of my orders – there was a bit posted on it in this thread: www.aussiestockforums.com/forums/showthread.php?t=7303. While that left me somewhat unnerved in using their software, these were some of my other concerns for IB and Aus options market:

1. The lack of specialized help during Aus trading hours on live chat. “General” help was the only one available when ever I accessed it. “Trading” help never was available whenever I used their live help during our trading hours - perhaps I was just unlucky.

2. The apparent lack of filters in their trading software - human error is possible and would be nicer to know that obvious credit trades cannot be wrongly taken as a debit – Ouch – still hurts… Even an error message would have been useful – but the faulty order just went straight through. I once made a similar mistake with OptionsXpress with Aus options, but their software came up with an error message and prevented the mistaken trade going through.

3. As per their options agreement, IB, who is not an ASX participant, routes Aus option orders direct to their affiliate, Timber Hill Australia who is an ASX participant. Not sure if this is the same Timber Hill who is one of several Aus options market makers. If so, I have wondered if they get first bite of the cherry. Hopefully, this is not so - Steve may wish to clarify this.

4. Although funds are apparently held in Citibank, Sydney, there were never any bank statements from Citibank - only IB's internal statements. Personally, I prefer to have bank statements.

5. I found the paper trading for Aus options worked only if there were active quotes in market depth. This made it extremely limiting, IMO as many Aus options do not have continuous quotes.

6. I don’t like the IB policy if one is assigned on a short option. They give the first ten minutes in the morning to deal with it before they start liquidating other positions – and, I believe, not necessarily the one that needs liquidating. To close the assigned shares without simultaneously trading any covering long option (or a synthetic version) is taking on huge directional risk. Very difficult in Aus to even think about getting a reasonable price on options much before 10.30 – 11am due to the underlying often being very jumpy during that time. I was never planning to use them as my main broker mainly due to the risk of their assignment policy, but it would have been useful for some of my smaller trades that don’t require front month short selling.

7. I found the TWS very slow to load – guess I have been spoilt by Iress – it is so quick and easy to manage.

Anyway, there are also lots of people satisfied with IB, so perhaps I was just unlucky with them. However, due the unnerving effect of having lost a significant amount of our IB account in less than a second - it was time to move on...

Cheers

 

[RichKid]

Hi RichKid,

Yes, there was a major problem with one of my orders – there was a bit posted on it in this thread: www.aussiestockforums.com/forums/showthread.php?t=7303. While that left me somewhat unnerved in using their software, these were some of my other concerns for IB and Aus options market:
..........
.......

Thank you very much for the reply Sails, I've drawn attention to this post in the 'Brokerage Platforms are terrible in Oz' thread where Steve-IB from IB usually posts, hopefully he'll reply soon. I can move the post to another thread if he replies in detail.

I'm sorry to hear of your misfortune, it really would have been best if they had some sort of screen to prevent this type of thing occurring, I can see how the lack of customer service online will be a bigger issue for them to deal with as that would mean having a real person to answer queries, especially more advanced issues relating to eto's, but considering the potential for business here in Australia they might focus more on it soon.

 

[legout]

Thank you very much for the reply Sails, I've drawn attention to this post in the 'Brokerage Platforms are terrible in Oz' thread where Steve-IB from IB usually posts, hopefully he'll reply soon. I can move the post to another thread if he replies in detail.

OK, that's it. What on earth is 'IB'. So sorry for my ignorance. I'll soon get all the abbreviations down. In FX it stands for 'Introducing Broker'. But here

legout

 

[sails]

OK, that's it. What on earth is 'IB'. So sorry for my ignorance. I'll soon get all the abbreviations down. In FX it stands for 'Introducing Broker'. But here

legout

IB = Interactive Brokers www.interactivebrokers.com
Lots of info for the Aus market in here:
https://www.aussiestockforums.com/forums/showthread.php?t=7303

 

[legout]

Last, but certainly not least, check out this thread: https://www.aussiestockforums.com/forums/showthread.php?t=8223 Post #6 has the link. It may be more what you are looking for..

Anyway, gotta run!

Sails,

Thanks for this link. I really like what I saw, and have bookmarked the site. I plan on seeing if it will be useful to my trading.

legout

 

[VolTracker]

You've gotta love OX,

I had 4000 RIOXOH barrier warrants (Sep07 85 strike) that got knocked out on that really bad day in Aug07.

Ever since then they have appeared in my portfolio with a negligible value (last price I guess). I keep thinking they would clean up the old, expired & knocked out holdings eventually.

Then today, 6 months later, thanks to the recycling of old codes I have 4000 RIOXOH (nicely itm with lots of time value) worth $8.50 each, $34000 worth.

To sell or not to sell....?

Best of all I've got heaps more of these dead warrants just waiting to be recycled...cant wait I'm goanna be rich! (unless some at OX reads this & wakes up of course)

 

[sails]

LOL VolTracker - agree - and don't be too quick to spend the money
However, I guess when you try to sell, the alarm bells will ring somewhere at Berndale when there's no-one to fund the other side of the deal!

 

[wayneL]

Vol,

Let me ask you two questions:

1/ How many of these do you have?

2/ Is your passport current?

 

[VolTracker]

Aw shucks, someone at OX must read ASF.

This morning, my portfolio has been stripped of my $38500 of RIOXOH and about 10,000 other dead turbos that I had accumulated.

No trip to the Bahamas for me. Still it was fun while it lasted.

I hope no-one at OX got in any trouble over this, obviously just a data processing oversite.

 

[jerome]

I have been us OX Us and have bene really happy with their platform and charting tools. I agree that their 'per contract' brokerage can really hurt if you are placing small trades, but apart from that have been really happy with them.