Please recommend FCM for options trading

Trading and Investing
1

Hi,

I’m looking for a good choice for futures options trading that don’t enforce strict rules for selling spreads or naked options, and also charge low-cost on commissions. Can someone recommend some good FCMs/brokers or platforms? I’m trading on IB now, but they enforce very high margin requirements, and charge $0.65 commission per contract, which is not very cost-effective. Thank you!

1 Like
2

Hello @Jesse, and welcome to the Optimus Futures community.

It’s worth mentioning that we do not participate in selling naked options at this time. However, if any of our members have personal experience or knowledge in this area, they are more than welcome to share recommendations for a Futures Commission Merchant (FCM) they trust.

It’s important to note that finding an FCM that provides both low commissions and flexible margins can be challenging. You may have to choose between these two factors because naked options carry unlimited risk and require constant supervision by risk managers during increased volatility. As a result, FCMs require adequate compensation for managing these risks.

Best,
Matt Z
Optimus Futures

3

Hi Matt,
Thank you for the reply. Appreciate for your reminding about the risk. Selling naked options is just an example of the case where FCM could enforce extreme margin policy. For myself, I mostly trade spreads. Even though, the margin policy could still be stringent. Any suggestion or recommendation is welcome.

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4

You are very welcome.

Could you give us an example of a spread you will do?
I’d like to see the exposure, the distance between strikes, expiry, etc.

Best,
Matt Z
Optimus Futures