Trading Options on Eurodollar Futures - IB can't do simple strategies?

Discussion in 'Financial Futures' started by cborjon, Feb 26, 2008.

  1. cborjon


    Does anyone out there trade simple option strategies for Eurodollar futures? Is there a broker out there that can handle packaged orders?

    I am not talking complex multi-leg combinations. I am just taking about simple call spreads or put spreads (not even a butterfly or condor). Example: Buy EDU8 97.75 call vs. Sell the EDU8 98.00 call. Or how about just doing a TUT spread (2yr t-note future vs 10yr t-note future). Legging these trades can be painful and cost ineffective.

    I use IB and simple call spreads used to work. You can still construct them, but they do not execute. They have been looking into this for over two months now....customer service is lacking. Is there another broker I should look at?
  2. eurodollar f&o are of the most liquid markets in the world, and there are plenty choices for platforms on which to execute. try manduca trading in chicago -- they should be able to help you out
  3. cborjon


    I agree about the liquidity of ED futures and options. However, liquidity is not the problem. The problem is the platform. Globex definitely can accept vertical spread orders. There just seems to be a disconnect between IB's software and Globex.
  4. i don't use ib, so i'll take your word for it on the disconnect comment. plenty of choices for platforms out there that can accomodate what you're looking to do.
  5. i have done 100's of globex spreads through ib's option trader. click on option spreads in option trader , then choose "generic". works for me every time.
  6. cborjon


    Their software has a problem with option spreads that are either deep in-the-money or far out-of-the- money. My problem is with a EDM8 96.25 96.50 call spread. It is over 100 ticks in the money..
    You build it as mentioned above. Then its status turns to "Transmitted not yet acknowleged". Globex says they will pick up the order if it is "formatted" correctly. I had a friend who works for GS put the order in using TT System's X_trader and Globex picked it up????

    I called Velocity Futures since they only charge $250 to use the X_trader platform and have good reviews here and on other boards. However, they do not let you trade options on futures????

    So I am still looking for a platform that would let me easily execute options on futures. Anybody know of a broker that uses X_trader, and has the options functionality turned on, and does not charge an institutional type fee (more the $250 a month)?
  7. cborjon


    An update in case any one cares....the problem is definitely with IB. I was messing around with the deep in the money call spread that I have on and put in a GTC order and was trying the different options (allow to be filled outside of regular trading hours checked/unchecked) and I left the order in place overnight - completely by mistake. Logged in the next day and the order had been accepted????

    Also, with regards to me thinking the problem has to do with deep in the money or out of the money options, I was wrong! I just tried to submit an order for a GEU8 98.50 98.75 call spread and it was "transmitted, not yet acknowledged". This option is only 50 bps out of the money. There is a 100 x 250 market on the 98.50 and 720 x 500 market in the 98.75.

    The system is not formatting the order correctly for GLOBEX to pick up the order. Again looking for a broker that uses TT's X_Trader and has the abililty to trade Options on Futures.
  8. Check out the Manduca Xpress platform. I loaded and submitted succesfully a DITM spread using the GED symbol for Globex ED, and it was accepted without a hitch.
  9. fabcme


  10. Stosh


    There used to be a guy named Steve who worked for IB and would address such things here on ET frequently. Haven't seen his posts in quite a while.....probably got overwhelmed. Stosh
    #10     Apr 17, 2009