Prop Firms for Options Writers

Discussion in 'Prop Firms' started by optionable, May 12, 2008.

  1. optionable

    optionable Guest

    Hi,

    Does anyone know of prop firms that accept naked option writers? I talked to a firm today and they mentioned that naked option writers are outta luck as far as prop firms are concerned.

    Thanks.
     
  2. This might be what you are looking for http://www.vtradergroup.com/VTraderPro/Default.aspx
     
  3. How much risk capital will you be putting up? I may an answer for you.
     
  4. optionable

    optionable Guest

    I suppose upto 100k, but if possible not a biggie but if a Series 7 is not required. (I suck at exams :)
     
  5. Unless you are putting up major capital you will not find many bending over backwards to sign up a naked option writer. Also you will not get any special leverage like stock traders. If you sell options naked they are going to limit you to what you can absorb maybe using portfolio margning but they will not want to be left holding the bad.

    VTrader will take you but have severe limits on what exposure you can have I bet.
     
  6. optionable

    optionable Guest

    So it sounds like my main motivation for going prop, increased leverage, is not a valid reason for option writers?

    Sounds like it is possible but quiet restrictive.
     

  7. I think there are some options strategies that are only feasible with a firm like VTrader, Cassandra, and others that I don't know of. Without these firms, relatively low-risk strategies would tie up too much capital.
     
  8. Steve Dillinger

    Steve Dillinger ET Sponsor

    We take option writers. You would have to accept some reasonableness on what you are doing. Do not expect to write many puts on GOOG and POT.

    We do not require a Series 7.

    To be considered for membership need to have pretty significant market experience.

    Call or send me an email if you want to discuss more.
     
  9. Open a PM account with interactivebrokers.
     
  10. Mvic

    Mvic

    If you have $500K to put up look at a PM account with optionshouse, flat rate on option trades ($9.95 for up to 3000 contracts per leg)
     
    #10     May 12, 2008