softs options IB

Discussion in 'Commodity Futures' started by 2rosy, Dec 1, 2012.

  1. 2rosy


    are coffee sugar cocoa cotton options traded on ice (nybot) what is displayed on IB's tws? Or is it a call around market
  2. just21


    The floor just closed what you see on the screen is 100%.
  3. 2rosy


    I never see any soft options trades go through on the TWS screen. That goes for ice brent oil options as well.
  4. RPEX



    Can anyone tell me whether the spreads got any more competitive on the nybot soft options now the floor has closed? I am too cheap to pay 75 bucks just for the feed (used to be $1!). Last time i traded them was over a year ago and it was painful - pretty much had to pay the full spread on SB options, which was abotu 10-20 ticks wide during rth.

    I was also looking at other commodity futures options, but they all look too wide.

    Ags> Corn and Wheat maybe
    Energy> CL and NG only, everything else is a canyon, which is a shame because HO would have been good. A while ago i had a look at brent options, which could be a go-er on ICE, the BZ ones have some volume on NYMEX but good luck getting filled.
  5. Achill


    I was trading ALL softs options such as sugar, cotton, coffee, cocoa and orange juice on TWS IB for over a year without any problem. The liquidity mainly depends on the month and price strike.

    I choose options with over 500 open interest and <b>mainly focus on the last traded price</b> instead of the bid/ask spread. That gives me an idea of a real option's price.

    There's also a trick to get an option's price without subscribing to the feed for $80.
    When you open a trade ticket, you can find the last traded price in the very top, that's what you need.
    You don't have to pay for quotes in order to place oders on softs options. Moreover, you will be able to see the profit/loss figures on the main TWS quotes screen, though a support guy told me it's not possible without subcribing for the feed.
  6. just21


    Why don't you make the spread tighter with your order? Bid over, offer under and leave your order in?
  7. RPEX


    Well that's what i meant by more competitive (i don't really know the right way to put it). So in another more competitive product that is exactly what i do and i know that i will get picked off sooner or later. But the last time i did that with sugar options the order just rested there until the market moved far enough for the order to match the bid or offer, so i basically pay the full spread.

    I've got access to the delayed data on IB, and it still looks wide, but without actually trading it i can't really tell if say i would get filled bidding 2/3 of the spread over.
  8. Why would you (accoring to your liquidity considerstion) choose to trade All soft Ags by not mentioning grains (corn/wheat)?
  9. just21


    Now the floor has closed and the market is 100% electronic you should get traded with quicker if you make the best price. Before the floor closed you're electronic order could be ignored while orders went to the floor.
  10. RPEX


    thanks for the tip, that could be handy. I don't know if i have the kahoonas to fire off orders into a market i can't see though. I remember a couple of years ago i was screwing around with an obscure CME commodity fop out of hours when there was no quote, just to check out the margin/risk etc. accidentally submitted it - must have got immediately executed by an opportunistic bot, $500 loss on a one lot, which is coincidentally what the CME would have charged to bust the trade. Good times.
    #10     Jan 5, 2013