What do you guys think of this deal: These guys pay no salary, no draw,(trader is independent contractor), they scalp mainly OTM options below .75 and look to make nickels and/or dimes. After monthly expenses and commissions, trader gets 80%. Trader can work his/her way up to be 50 or 100 up in the liquid OTM's. Trader does not have to front any capital. Commissions are .70 per contract. What do you think? Anyone ever have this set-up before?
If you're not on the hook for losses it sounds like you're getting a free option on their money. Expect their risk management group to be watching you like a hawk. I can't imagine paying the spread all day long as a way to win in options. Is this a market-making firm that can quote two-sided markets or something? Traveler
I'm a little confused. How can you be considered an independent contractor if you don't put up any capital of your own? At any rate, I started with a very similar set up as you describe (but with my own *extremely modest* deposit) roughly 4 months ago. I will take home approx 5 figures this month. So, yes it can be a very lucrative opportunity. Good luck.
I've also heard that unscrupulous people will keep your share of the profits under this arrangement, if you leave to go out on your own, or find a shop with cheaper commissions. Make sure you get you cut every month, or some shorter interval, so you can safely leave when it suits you best.