Prop trading firms for Options?
Fellow monkeys, I am looking to trade options for a living, and I'm looking for prop trading firms that allow you options trading, I'm not looking for leverage as I know there is no leverage in Options trading, I just want the ability to get out of the Pattern Day Trading rule without needing 25K in my account.
I'm looking to start with about 5-10k, I know some of you might say that such amount is not enough to make a living, but right now I feel I could make about three to five hundreds dollars a day, besides, I moved back home, so I'm set with no rent, also I'm single and no kids. I have been paper trading for about 2 years, and I have indulged into a bit of trading from time to time during the past 4 years.
By the way, this is my first post, as I am a lurker here.
If I'm reading your post correctly, you don't need a prop shop to trade options. Any brokerage will do, even etrade:
https://us.etrade.com/investing-trading/options?ploc=it-nav
Good luck!
edit: joking, good luck man
Hi monocachondo, welcome. How cachondo are you? Really hot or not this much? Kidding.
What you are asking about is not a prop trading company, I understand that you want to trade your money, isn`t it?
I want to trade my own money, but I want to do it with 5-10k and not wait until I save up 30k to avoid the PDT rule; therefore, I am looking for a prop trading firm which will allow me to daytrade. Obviously, I want to do this from home in my undies, as I'm no moving to NY or Chicago to get a prop trading job.
I don't think you understand what a proprietary trading firm is. What you want is a brokerage.
So you are holding a Oracle Dec13 put option with a high delta, what are you losing sleep over?
I think a straddle would be a better option than buying a put, that is a really long time until expiration, and I don't see an underlying reason for Oracle to go down, though a move to the mid 20s would be within its range.
Ok well lets take a diff approach, lets say its Oct12 and you think Oracle is going to have a big move, so you buy a straddle Dec12 atm, and subsequently the stock moves aggressively higher with only a little bit to go to expiration. Now Oracle comes out as it did and states it will be paying their next three divs in the Dec12 dividend, do you have any P&L and if yes what is it? (i havent given numbers so just use variables)
With so far to expiration, a single put option = 1/2 a straddle. Because of put-call parity there is no difference.
you're going to make 300-500 a day trading on 5-10k? ...must be some strategy
Dude, with the moves that GOOG, AAPL, and PCLN do on a daily basis, you can make a killing using simple options strategies, I've been stalking those 3 hot mammas for years.
Options on high volatily stocks can yield a whooping profit in just a couple of minutes, which is why I seek the ability to do several day trades in a single day. I have a group of stocks which I stalk and I concentrate on, they might only be a few, but that's my niche and it makes me money, paper money that is.
yea high volatility = high cost...i'm not about to drop 2k to buy an aapl call but youre right, 500 a day is doable, but so is wiping out your entire account in a couple trades
good luck getting filled when its the real deal, troll
You speak of me having problems getting filled in on a real account... Do you think I'm gonna be trading thousands of contracts on a 5k account? Seriously.
Yes, you can make 500 off of 5k. I also know a guy who turned 5k into about 100k after getting lucky using weekly calls with MMR being bought out. But to average 500 consistently with a 5k account is not possible. If you think you have a strategy that can do that, you obviously don't know how options work.
Real trading is different from paper trading. If you think that you can actually make 5-10% return consistently, just take the 25k loan so you dont have to worry about PDT.
If you're looking to only buy options, and not sell:
If you're making 300-500 on 5000 the 10% fee should be the least of your worries. PDT doesn't apply to Roth IRA since you can't trade on margin.
That said, if you're looking for a prop platform that lets you trade your own money in your underwear, PM me. Not sure if 5-10k is enough for their min, but you'll get the routes and the low comish.
But you still have to wait T+3 for settlement right? For example, if I have 5k in the Roth IRA account, and I buy 5k worth of options and sell the same day, will I be able to buy another option right away?
Well, I've heard of this TM Global Capital Firm and I want to see what they offer and how it can help my situation, there's also that Maverick Capital, but I've heard they are a joke. I might also consider the Roth IRA thing since that way, I can use the Thinkorswim app and trade from my phone at work, since going with a firm, whether Prop, brokerage, or whichever would mean quitting my current job and dedicating 100% to trading. Now, I have no problems with quitting my job to trade with a 5K account, but if I can trade from work until my account grows enough to live from it, then its much better.
And by sell I mean writing naked, obviously you can sell out of the positions you're in.
Actually, for anyone wondering I just found out options settle in 1 day. not T+3.
word.
Options settle T+1 Stocks settle T+3, but T+1 if it's cash settle.
So if you exercise an option it's T+1 then T+3
I know, completely irrelevant. Series 56...
Correct me if I'm wrong but under the Volcker Rule passed in 2010, most financial institutions are supposed to close their prop trading desks by 2014. That's 11 months left. I was also looking to join Pristine (for equities day trading), but pulled out. It would be really great to hear more on this, from you fellas !
Have you researched the choices of trading binary options?
Hello, any new updates for this thread? I don't think OPs question was ever answered satisfactorily, just a bunch of snarky replies
Which prop firm allows you to trade purely options? (Originally Posted: 07/18/2011)
Which prop firm allows you to trade purely options?
Not too familiar with the matter, but I believe Susquehanna is primarily an options trading firm.
Most of the market making prop shops (JSC, DRW, SIG, Citadel) have options desk, if thats what you mean.
Spot Trading is exclusively options. That is just about all they do.
Plenty of prop firms that do almost exclusively options. Optiver, spot, and ronin come to mind.
Infinium, Optiver, Spot, Ronin all have options.
Not exclusively options but TransMarket is building up their options desk.
Which proprietary trading firm allows you to day-trade equity options? (Originally Posted: 07/21/2011)
Which proprietary trading firm allows you to day-trade equity options?
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