I'm looking for suggested products and underlyings to trade options on commodity and currency futures. My broker is IB, and so if possible I would like to stay with them and use options that are listed on US exchanges. I want to allocate a couple MM to each underlying and so I want to trade things which are more liquid, decent spreads and good execution. Staying with futures for 1256 treatment. The goal is to get a well diversified portfolio. Mostly trading fronts and mid months. Currently thinking of WTI/Oil NatGas EuroDollar EUR/USA GBP/USA CAD/USA AUD/USA Wheat Corn Coffee Any other suggestions, underlying(s) that people would suggest? Feedback regarding execution, market depth, and experiences most welcome. Thanks!
Thanks. I think I'll be in that market, also looking for options on currency futures. Globex seems to have some but my screen is not showing a lot of open interest there.
Do ETF's qualify for 1256? FXE - CurrencyShares Euro Trust FXB - CurrencyShares British Pound Sterling Trust FXC - CurrencyShares Canadian Dollar Trust FXA - CurrencyShares Australian Dollar Trust Options are available, but the spreads/volume might be a problem.
Yes the basis for some of the ETFs is small and so I would need a ton of contracts, probably excluding me from their use unfortunately.