I was curious if anyone is using a platform where you can directly trade volatility as opposed to price. I currently use Volatility trader through IB but it's a bit clunky for some of the spreads and ratios I trade. I've looked at Silexx and Cyborg but the only thing that comes close to what I'm looking for is Bloomberg tradebook. Thanks!
I'm with IB and i just started looking at the volatility trader... when you say klunky.. what do you mean exactly
Its actually a pretty good application but you can't trade indexes using it (I only trade RUT & equities so I'm not positive about SPX or NDX) and a lot of times you cant get a quote on spreads. I generally leg into all of my trades so I can route to the exchange I want but if you want the actual vol of the spread you sometimes wont get it. The price wand on mine seems to get stuck sometimes as well but that's never really a huge issue. I'm a bit of a different trader since I don't use charts of any kind and don't rely on any canned indicators. I trade entirely by the Greeks so I'm looking for something a bit more robust than the Vol trader/Risk navigator combo (currently I use OptionNet explorer for my analytic's but importing my positions is a nightmare). I seem to get the best fills when I route to Nasdaq/Amex. How about you? Everyone seems to be pissing and moaning about IB's data, customer service, fee's blah blah blah but most people don't realize its a platform for experienced professional traders and not nitwits trading Iron Condors because they think it's "easy" money every month. I'm a full time trader so eventually I'll have to build my own but at this point I'm thinking I may have to switch to Tradebook or Options City or some other broker neutral platform that has the software I need. Its a pain in the ass because I actually like trading with IB.
They are broker neutral platforms that are not cheap. But they will run an automated option strategy. That strategy can be vol based. You can't use these with IB. http://www.optionscity.com/ http://www.actant.com/products/actant-exstream.php You will need an introducing broker willing to set this up for you. 1245
Deep ITM legs don't often quote consistently, so you may have to work a synthetic. You see this a lot in call or put flies. You would have to quote the straddle/strangle combo to get a vol-market. There isn't much interest in quoting a 90D call or put.
I'm talking about using the Vol trader application on TWS to directly trade IV in relation to Delta with an index (it has a continuous update feature which is pretty cool but like I said the interface isn't robust enough for the way I trade). I can always get a quote for volatility on an individual option but you cant trade an index through a Vol page with IB which is the big problem. When I put on a butterfly I always sell the straddle/strangle 1st and then buy the wings later so I need the ATM spread Vol.
You can view Vol very nicely on their platform, but not trade vol. You can't put in a vol you want to buy or sell 100X vs the common or another option.
Rediplus might have it. I know RealTick did as did the Morgan Stanley application. Of course you can do it yourself with some programming as "what vol you are trading it" is dependent on your model and ability to execute. If you want to trade with known prices for the stock and options (so you are trading your vol level with certainty (up to a certain delta band)) you have to use the interdealer broker market. IB might do delta neutral through their floor desk. I don't know. EDIT: I just called my broker's options desk and they said they can do delta netural orders.
Livevol has some cool features but I would like a platform I can do everything from. Rediplus would be great but I'm not sure I would qualify for an introducing broker like Goldman yet. I've started working on my own application but with C++ It'll probably take me at least 6 months to have something viable/functional. In the meantime I'd like something a little better than Vol trader or IB's API. Do any of you use anintroducing broker like Goldman or Morgan Stanley? What are their minimums if you don't mind me asking?