Almost worth staying up into the wee hours of the morning to watch it all unfold.Friday could be a historic day for the U.S. options market, according to a derivatives strategist at Goldman Sachs Group.
As trading in U.S. stock options, especially extremely short-dated zero day to expiration options, continues to boom, contracts attached to $3.4 trillion worth of U.S. stocks, exchange-traded funds and equity indexes like the S&P 500 are set to expire Friday during September’s expiry for monthly and quarterly options, according to the latest figures from John Marshall, head of derivatives research at the investment bank that were accurate as of midweek.
That is on track to be the largest September expiry on record, raising the possibility that markets could finish the week on a volatile note. Friday’s session is what’s known as “triple witching” day, when single-stock equity options, equity index options and U.S. stock index futures for the month and the quarter all expire on the same day.
In a breakdown of notional value due to expire, Goldman showed that nearly $2 trillion of S&P 500 index options are due to expire Friday morning, while single-stock options with a notional value of $555 billion will expire later in the day, along with a host of other contracts.
I've been with Saxo but am looking elsewhere and I tried to sign up with IBKR but the application process said I can't trade options, and when I asked via email they can't tell me anything other than 'You must have not entered the required details (knowledge level, income level, experience level, etc) in order to be approved for options trading. If your situation changes you can add this to your account.'I use IBKR. Contract pricing I believe is way cheaper than ComSec
Hi @Dingo34, you probably missed a couple of option questions. I had a go at signing up a while back, I had a good knowledge of the basic options that I was using but I hadn't bothered to study the ones that I wasn't intending to use.I've been with Saxo but am looking elsewhere and I tried to sign up with IBKR but the application process said I can't trade options, and when I asked via email they can't tell me anything other than 'You must have not entered the required details (knowledge level, income level, experience level, etc) in order to be approved for options trading. If your situation changes you can add this to your account.'
im not happy with Saxo, there is clear lack of support@greekgeek I'm using Saxo at the moment but I'm looking at changing to Tastyworks, both are now located in Australia.
yeah i tried several options (pardon the pun), i answered i was an expert with >10 yrs experience, no go, i answered that i had liquid assets of over $100K (i might have even said over $1 mill) but it didnt matter what i answered it said cant trade optionsHi @Dingo34, you probably missed a couple of option questions. I had a go at signing up a while back, I had a good knowledge of the basic options that I was using but I hadn't bothered to study the ones that I wasn't intending to use.
I've been with Saxo but am looking elsewhere and I tried to sign up with IBKR but the application process said I can't trade options, and when I asked via email they can't tell me anything other than 'You must have not entered the required details (knowledge level, income level, experience level, etc) in order to be approved for options trading. If your situation changes you can add this to your account.'
thx mate...was about to start a whole new post on this topic lol but i'll ask here first in case you've experienced it.So Tastytrade are excellent.
Execution: excellent;
Platform: good/excellent
Helpdesk: excellent
Commissions: low to zero (no commissions on closing trades and very low on opening trades).
US Options, Stocks, Futures, etc.
Pretty easy to open an account, easier than most.
Can't recommend them enough.
The link is a referral: https://start.tastytrade.com/#/login?referralCode=RRMD9SDQ6C
If you use it I'll donate the fee to Joe Blow.
jog on
duc
thx mate...was about to start a whole new post on this topic lol but i'll ask here first in case you've experienced it.
so i started a new job which now finds me home every second night and because it's nightshift im awake all night so ive decided to try my hand at trading options ...this is my speculation account, it's money i can afford to lose..so with that said, here is the issues i have found with Saxo
i am trading 0DTE options, using risk defined strategies which so far have used credit spreads, butterflies and last night iron condor. now what i have experienced is that at 2pm ET (new york) saxo will close my positions no matter whether they're in the money or out of the money, claiming margin utilization, which is a little confusing because the whole point to risk defined is to negate the whole margin issue.
Last night in particular I set up a iron condor on QQQ's with QQQ at around 437, short call at 438, short put at 436, longs outside these...I was supposed to get a premium of $43 per contract if it expired OTM...so at 2pm with QQQ around 436.40ish my margin utilization goes from 19% all the way up to 100%+ in a matter of seconds despite QQQ still trading above 436.40ish...they closed all my positions with a small loss in total..and then QQQ still closes above 436...i am wondering if all brokers are doing this?
Take a look to see if trading the 0DTE option of the next day (1DTE) will help.thx mate...was about to start a whole new post on this topic lol but i'll ask here first in case you've experienced it.
so i started a new job which now finds me home every second night and because it's nightshift im awake all night so ive decided to try my hand at trading options ...this is my speculation account, it's money i can afford to lose..so with that said, here is the issues i have found with Saxo
i am trading 0DTE options, using risk defined strategies which so far have used credit spreads, butterflies and last night iron condor. now what i have experienced is that at 2pm ET (new york) saxo will close my positions no matter whether they're in the money or out of the money, claiming margin utilization, which is a little confusing because the whole point to risk defined is to negate the whole margin issue.
Last night in particular I set up a iron condor on QQQ's with QQQ at around 437, short call at 438, short put at 436, longs outside these...I was supposed to get a premium of $43 per contract if it expired OTM...so at 2pm with QQQ around 436.40ish my margin utilization goes from 19% all the way up to 100%+ in a matter of seconds despite QQQ still trading above 436.40ish...they closed all my positions with a small loss in total..and then QQQ still closes above 436...i am wondering if all brokers are doing this?
what ive noticed is that it doesn't matter which broker you use, any options strategy will be closed out a few hours before expiration (even those longer than 0DTE) if the strategy has any short option leg in it, whether it's risk defined or not, whether it's OTM or not, unless you have the total amount in cash to buy the 100 stock/etf, and the basis behind this is that no broker can know if an option is going to be exercised, and believe it or not, even those that close OTM can still be exercised by dumb traders...all good lesson learnedTake a look to see if trading the 0DTE option of the next day (1DTE) will help.
@Dingo34 the whole point of using the 0DTE of the next day is that you will be trading the position on the day of expiration.what ive noticed is that it doesn't matter which broker you use, any options strategy will be closed out a few hours before expiration (even those longer than 0DTE) if the strategy has any short option leg in it, whether it's risk defined or not, whether it's OTM or not, unless you have the total amount in cash to buy the 100 stock/etf, and the basis behind this is that no broker can know if an option is going to be exercised, and believe it or not, even those that close OTM can still be exercised by dumb traders...all good lesson learned
What way did you find best and cheapest to fund your account and to make withdrawals?So Tastytrade are excellent.
Execution: excellent;
Platform: good/excellent
Helpdesk: excellent
Commissions: low to zero (no commissions on closing trades and very low on opening trades).
US Options, Stocks, Futures, etc.
Pretty easy to open an account, easier than most.
Can't recommend them enough.
The link is a referral: https://start.tastytrade.com/#/login?referralCode=RRMD9SDQ6C
If you use it I'll donate the fee to Joe Blow.
jog on
duc
What way did you find best and cheapest to fund your account and to make withdrawals?
For anyone that may be interested, this post should read 'that will NOT be trading the position'. Sorry for not proofreading the post.@Dingo34 the whole point of using the 0DTE of the next day is that you will be trading the position on the day of expiration.
I actually thought that was what you meant....and that was my point...it doesn't matter if I trade any expiration, if I leave it until the last day they will close it all out at 2pm ET. I even had Saxo close out a 'long put' at 2pm instead of letting it expire worthless (I had previously closed out the corresponding short earlier in the day) citing margin concerns. So in a nutshell, based on my experiences over the last 2 weeks, it doesn't matter what expiration you trade, it doesn't matter whether you buy or sell options, saxo at least, will automatically close out your positions a few hours before expiration if you do not also have the cash equivalent of 100 stocksFor anyone that may be interested, this post should read 'that will NOT be trading the position'.
Sorry @Dingo34, you were just giving us information, I thought that you were asking how to avoid this with 0DTE options. Please let us know what you think of Tasytrade if you decide to switch to them.I actually thought that was what you meant....and that was my point...it doesn't matter if I trade any expiration, if I leave it until the last day they will close it all out at 2pm ET. I even had Saxo close out a 'long put' at 2pm instead of letting it expire worthless (I had previously closed out the corresponding short earlier in the day) citing margin concerns. So in a nutshell, based on my experiences over the last 2 weeks, it doesn't matter what expiration you trade, it doesn't matter whether you buy or sell options, saxo at least, will automatically close out your positions a few hours before expiration if you do not also have the cash equivalent of 100 stocks
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