CME site says trading started in crude options yesterday. Anybody done them-who's got best direct access and has anybody used CME EOS TRADER , their proprietary front end ? Looking forward to seeing what i'm trading and not having to talk to/trust a broker.
sorry- should have said electronic crude options. supposedly cme is trading them but i haven't found a way to access them.
It's a NYMEX on CME Globex deal, just like the futures. The crude and natty opts have been on the screen since late June, and product opts came on a month or two ago. Pretty slick for simple stuff with decent open interest toward the front of the curve, but strips, back months, and complex structures still are better do to in the ring with the market makers, regardless of how you feel about doing business with them.
thanks Gyrene I'm getting away from a full service broker-do you use IB to access them or is there a "better" way ? I was going to use Optionable but they got so much bad press I just pulled back. new$
Not being a retail trader I don't use IB, but last I knew you couldn't even transact NYMEX options in any venue (neither pit nor screen) through them as they hadn't rolled out the product for their customers yet. I know some people like them, but I have several friends who use them, and the horror stories about execution and faulty software never seem to cease. I know they offer futures, equities, fixed income and FX, so from that standpoint they may be worth keeping, but if you want a reputable broker for futures trading I would go with an FCM that specializes in futures and offers retail accounts (RCG, RJO, Man/MF Global come to mind, just to name a few). Knowing nothing about Optionable other than the BMO scandal, I can't offer any advice there. Good luck and good trading to you.
Is Optionable really still in business? I can't imagine any reputable shop doing business with them these days between Globex and all of the OTC brokers listing options on Trayport.
Nymex had bought in to them and then withdrew with the BMO deal. They have put out no press since the summer but I think the SEC and a grand jury are on their case. If they're alive they need to speak up.
I'm looking to buy one maybe two calls for 2010 CL. You still think I should try in the pit or try my luck with globex? Any other advice on how to get a decent fill? Start with theo value and work from there? Any help is appreciated.
If I were looking for '10 CL options right now I would only go OTC. The b/a in the pit will be ridiculous and the liquidity on globex cl options isn't very deep beyond the prompt 12 months, although it's slowly starting to improve. Your best bet is probably trying to find a shop that will make a market for you in OTC options and then EOO (exchange of options for options) it to NYMEX for clearing but even that will be tough if you only want to trade one or two lots.