I am thinking of getting an Options Trading Permit to trade options on the floor of the ICE. Does it make economic sense, will I have any advantages over trading electronically. Any current of former floor traders have any advise they would like to share.
Have you made 10K a month constantly for the last 3 years on options? Are you trading over 1500 contracts a month? Is you account over 500K allocaed just to trade options? What do you know about trading about trading option on th floor? Do you jus want to soclaizlize? Now most of the things are done electronically. Not really a need to be on the floor to be profitable. I use my kitchen floor. Are you ready to pay 500K a year for that?
You have to become a Broker Dealer or Join a prop firm that will let you do this. You will have to set up a co located server, pay for an electronic system to send out your quotes. This is only the beginning of what you'll be required to set up and pay for. You should expect the monthly fixed cost including the permit, trading software, compliance, accountant etc to be over 10K. Good luck find a clearing firm to sign the guarantee and the clearing agreement. Even if you have $500K, the few firms that clear and service floor members are looking like they are more interested in leaving that business than adding clients.