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  3. Scott Green

    eOption Brokerage Special Offer

    Hi, thanks for your question. No, our clearing firm does not allow for calendar or diagonal on index options. As for the exchange fees, they can be found here www.eoption.com/rates/ under Miscellaneous Fees >> Index Option Exchange Fees. There are other fees such as SEC, TAF, OCC, and ORF. Let me know if you have anymore questions. Scott
  4. luxmon

    eOption Brokerage Special Offer

    @Scott Green - does eOption allow long calendar/diagonal spreads on the SPX and RUT cash-settled index products? Also, can you provide the exchange fees you pass on to the customer on those products? I did not see those specifics listed on the website's commission schedule. Thanks, Tim
  5. So, how can we avoid falling in such forex scams? Casey Stubbs already covered this issue and gave 3 ways to avoid forex scams. I’ll expand on his advice, and add some more thoughts: If it looks too good…: Sites that promise automatic and big profits in no-time should raise your first suspicion. There’s no easy money in this market. Sites that try to sell such products will usually have only one page that showing blinking dollars and no serious explanations. The graphics are usually “loud” and not humble. Talk to people: Casey suggests talking to people in the company and also with people that use the product to get an idea. In some cases, the people you’ll see in the promotional video will already look like clowns. In other cases, they will look serious, but you need to verify that they really stand behind their product. Google the product and search for problems: I’ll add that you easily do a Google search, and add words such as “sucks” or “scam” to the name of the product. If the search results yield too many convincing results, it isn’t only competitors that are complaining – it’s real people that have already suffered. Check the people on LinkedIn: The world’s leading professional network has a very wide audience. Searching for the people behind the company in Google will almost always yield the LinkedIn page in the first results. If the people behind the venture don’t have a profile on LinkedIn, that’s a problem. If they do, see who recommends them. Solid recommendations will help you feel better. Regulation: A serious participant in the market will be regulated by at least one authority. The American NFA is the toughest authority (sometimes too tough). A stamp from the NFA, FSA, CFTC or another reputed institute in a normal country doesn’t mean that the company is bona fide, but it’s better than nothing. Companies listed in some exotic island look suspicious. Demo account: As aforementioned here, a forex demo account is the basic broker check. Some robots can actually have an OK performance, but how can you know that? You need to check it out. Ask to try it without real money. Intuition: Well, at the end of the day, you get a feeling about the people on the other side. As you can see, the forex industry has lots of bad people in it. Contrary to the basic rule at court, where a person is innocent until proven otherwise, you should assume that everyone is guilty and that they need to prove their innocence to you. This is a guest post from FXStreet, a leading provider of data, real time analysis and actionable tools for Forex traders.
  6. Scott Green

    eOption Brokerage Special Offer

    Hi There! Scott from eOption here. You can enter multiple orders, but you would be responsible for monitoring them, including if you wish to cancel them. Soon we’ll have trade parameters OTO/OCO available where one trade can cancel another, but that’ll only be applicable to two trades, not three. This is currently in development for our platform. Does that answer your questions? Let us know if there’s anything else.
  7. “The CBOE S&P 500 30-Delta BuyWrite Index is designed to track the performance of a hypothetical covered call strategy that holds a long position indexed to the S&P 500 Index and sells a monthly out-of-the-money (OTM) S&P 500 Index (SPX) call option. The call option written is the strike nearest to the 30 Delta at 10:00 a.m. CT on the Roll Date.The BXMD Index rolls on a monthly basis, typically every third Friday of the month.” Historical index data is available since July 1986 to compare the performance of BXMD to the S&P 500 Total Return Index. The below chart created at www.portfoliovisualizer.com highlights the summary statistics and equity curve with portfolio 1 representing BXMD. Past performance doesn’t guarantee future results. You cannot invest directly in an index. From July 1986 – December 2018, BXMD outperformed the S&P 500 by 0.43% per year. Since the only difference is the short call, this tells us that selling a 30-day call every month has been a profitable trade over time. Since a short call is negatively correlated to the underlying index, it results in a slight reduction in portfolio risk where standard deviation, worst year, and maximum drawdown are all reduced. Alternatively, in months where the S&P 500 increases by more than expected, the short calls lose money and BXMD underperforms. Overall, I prefer to think of put options as financial insurance and call options as lottery tickets. In both instances, it’s rational to expect sellers to profit over time (but not every time). As a covered call seller, you retain almost all of the downside, yet cap your upside. In a world of generally efficient markets, why would any rational market participant do this without the long-term expectation of profit? This theory matches the empirical data. Additional recommended reading on covered calls: AQR: Covered Calls Uncovered AQR: Covering the World: Global Evidence on Covered Calls Jesse Blom is a licensed investment advisor and Vice President of Lorintine Capital, LP. He provides investment advice to clients all over the United States and around the world. Jesse has been in financial services since 2008 and is a CERTIFIED FINANCIAL PLANNER™ professional. Working with a CFP® professional represents the highest standard of financial planning advice. Jesse has a Bachelor of Science in Finance from Oral Roberts University. Jesse manages the Steady Momentum service, and regularly incorporates options into client portfolios.
  8. TrustyJules

    eOption Brokerage Special Offer

    Shame they dont accept people from Belgium - what is their interface like. I am with TW and sort of happy there but the Tradier screens with more complex trading options did seem attractive. Is the eoption interface also able to process trades like: opening three attempts for a spread and then cancelling the previous two if one is filled?
  9. All good points. I'll try and put together a table of pluses and minuses for a few different approaches. Single puts and calls are nice because of simplicity and trading costs. I think debit spreads could be helpful because they eliminate any variation for distance out of the money and probably allow more diversification. The problem is that we lose some of the really big wins. At 50K we would still be trading gold and oil at around 20-25 delta I think so some options would still be relatively far otm in the single options/larger portfolio scenario. I'd be really nervous about trading credit spreads with this system, especially anything far otm. If it makes sense I could potentially test one of these in parallel with the core system for a couple of months and we could compare weekly volatility and results pretty easily. Rich and I have both been travelling a lot for work and we need to get the May results posted but we might be able to get something outlined in the next day or so if people are interested.
  10. Kim

    eOption Brokerage Special Offer

    No, actually the public rate is $3 plus 15c per contract. 50% higher than SO rate. https://www.eoption.com/rates/ Tastytworks is $1 per contract. Sosnoff is just much better in marketing.
  11. mediaboy

    eOption Brokerage Special Offer

    It appears the pricing is the same as public website - available to all not just members here. The rate is not that competitive. Pretty sure Tastyworks is cheaper and we know they develop the entire stack. This looks white label to me.
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  13. Hello all, We’re happy to share a special offer from an online broker partner of ours who specializes in options trading – eOption. Starting now, eOption is offering SteadyOptions members special pricing of $1.99 per options trade (or equity trade) plus 10₵ per options contract. There’s no end date for how long this rate lasts, it’s yours. Few things to know about eOption: Trading platform offers OptionsPlay, which helps users research and analyze options trades Live customer service is available by phone and online chat Broker-assisted trades offered for $6.00 Streaming news and market reports are accessible from the platform Zero fees for transfer-in accounts We encourage you to check them out, and if you’re interested you can sign up here. If you want to learn more about them you can visit their website at www.eoption.com, but if you sign up please use the promo code “steadyoptions” to receive the discount. If you have any questions please feel free to ask here.
  14. ex3y7s

    Welcome to Steady Futures

    Closer expiration could hurt us with theta though. My sense is we should just increase the model portfolio to 50k and continue using puts, provided that would largely solve the issues we're seeing.
  15. lrfsdad

    Welcome to Steady Futures

    We could get closer to ATM and similar delta with spreads right? Or closer expiration? Some of the drawbacks mentioned to trading these options are the reasons some argue selling them is better. Till there is a move that cordier went through recently. I guess there is trade offs to everything.
  16. TrustyJules

    Fear of Options Assignment

    I dont disagree with what is said but regarding the SPY I made an interesting observation with regard to put positions. Check out this list with open interest of one of the shorter term SPY puts JUN14: The Jun19 is the same - as a rough rule of thumb I noticed that if your short put is 10pts ITM with a week or less to go it tends to get assigned. Hence the zero OI.
  17. Trusts originally served four primary purposes. (Yes, there are others, but these, historically, have been the big four) Avoiding probate. Probate is seen as a “big, long, expensive, painful” process. It takes court filings, hearings, money, etc. General consensus has been to put all of a person’s assets into a trust or have a pour-over will that moves things to a trust when the person dies to avoid probate. Depending on the state where someone lives, this may or may not still be valid. I don’t know the probate process in all of the states. (I’ve only probated wills in two states). In Texas, this concern is over-blown. The process of probating a will is not that expensive. If an estate is too small for a normal probate process, there’s even something called the “small estate affidavit” that allows heirs to “skip” most of the formal probate process. I personally think, in Texas anyway, the use of a revocable/pour-over trust for purposes of avoiding probate is unnecessary; Avoiding taxes. Depending on the year, the estate tax exemption has ranged from $0 to $11m for couples and everything in between. This means if someone had as little as $500,000 (which I realize for a lot of people is a TON of money, but there are millions of people that have more than that in this country), that person’s heirs could (again depending on the year), find the government taking upwards of 33% and 40% of that when they inherit. This is particularly problematic if a large amount of real property (land) is included in the inheritance because that isn’t particularly liquid. What happens when there is family property? For example, should a family own a ranch worth $5m. When parents die, the children inheriting the ranch will have to either come up with $2m cash or sell the property to pay the 40% tax. The other option would be for the parents to setup trusts to transfer outside of estate taxes years ahead of their demise. (It is more complicated than that, but that is the general premise). Since the estate tax exemption is currently around $11m for couples, this is much less of a problem today than it was in the past. Of course, there are democratic candidates calling for the elimination of the exemption and taxing estates at 100%…so this could go back the other way. I refer to the constant changing of the estate laws as the “Estate Lawyer Employment Acts.” You should have seen the mad scramble at the end of 2012 when there was a chance the exemption was going to $0 (didn’t happen); Protecting Minors. For parents who have a lot of money or who may have life insurance policies with large payouts, upon their deaths, they don’t necessarily want their 12-year-olds to have a million dollars at their disposals. A trust continues to be a good way to help manage the funds until any children are old enough to manage the funds independently. Liability Protection. If a person moves assets to an irrevocable trust in which that the person is not the named trustee, the assets can be shielded from liability. Meaning if I have the right to income and “expenses to maintain my standard of living” but NOT the right to actually control the trust, and I get sued for $10m, that trust, if setup correctly and in advance, might protect against that judgment or from creditors. This is still a legitimate use of trusts, but I personally prefer investment companies, particularly in Texas with how strong the corporate liability shields are and/or the difficulty (if not impossibility now) of piercing the corporate veil in the state. Of course, there are some MAJOR disadvantages to passing assets via a trust: No step-up in basis. To me, this is the number one reason to be cautious about using trusts (living trusts aside). A step up in basis means the heirs don’t have to pay capital gains tax. So if a trust includes stock ABC that was bought at $100,000 for $1 per share that is now worth $10 per share (so $1m total), without a step-up in basis, that’s a $900,000 capital gain the heirs will have to pay in taxes. If you get a step-up in basis, you don’t have to pay that tax; Tax inefficiencies. During the lifetime of the trust creator, trusts are tax inefficient, particularly irrevocable trusts. LLC’s, if you have real estate, tend to be a much better vehicle from a tax rate perspective. Why put something into a trust that’s going to get taxed at over 33%, when if it is put into an LLC, the tax rate will be lower on the property. (TALK TO YOUR ACCOUNTANT/LAWYER ABOUT THIS AND WHETHER IT ACTUALLY HELPS IN YOUR SITUATION); PODs. For many assets, it’s just as easy to pass them via a POD (payable on death)/beneficiary designation. IRAs, bank accounts, insurance, brokerage accounts, etc, all allow holders to designate beneficiaries upon death. This happens as soon as upon death — no need for probate, trusts or anything else. MOST assets can be passed this way, which eliminates the need for paying for a trust). The answer to the question “Are trusts the best way to leave money to heirs” is “it depends.” Why are you using one? What state do you live in? How much do you have in assets? What KIND of assets are they (real property, cash, stocks?); How old are you? How much life insurance do you have? Do you have kids or young heirs? Do you care what your heirs do with the money? No matter what people decide for dispersal of wealth after death, it is better to make these plans when young, than when on death’s doorway. Doing it later in life removes options. Trusts aren’t as necessary as they used to be — which doesn’t mean they aren’t necessary — it just means people need to have discussions with their attorneys and advisors. Christopher Welsh is a licensed investment advisor and president of Lorintine Capital, LP., LP. He provides investment advice to clients all over the United States and around the world. Christopher has been in financial services since 2008 and is a CERTIFIED FINANCIAL PLANNER™. Working with a CFP® professional represents the highest standard of financial planning advice. Christopher has a J.D. from the SMU Dedman School of Law, a Bachelor of Science in Computer Science, and a Bachelor of Science in Economics. Christopher is a regular contributor to the Steady Options Anchor Trades and and Lorintine CapitalBlog.
  18. ex3y7s

    Welcome to Steady Futures

    Good points, thank you. I wonder if it makes the most sense to simply use the slightly bigger account. Trying to fit a round peg into a square hole is just going to be an exercise in frustration/bleeding money. Edit: I mean the bigger account with options for the official Steady Futures portfolio so that the options could be ATM or closer to it.
  19. Probably. I think options work on a slightly bigger account with no modifications. ATM really does solve a lot of problems. We could also start using synthetic positions which solves some of it but opens us up to all the problems with a short option in the portfolio. I suppose another method would be to trade these as spreads. I'm not sure what that would look like when we pull big wins out of the system but it might work ok especially if we actively close winning trades once their upside diminishes and reopen on a Friday. I'd have to think about that some more. Transaction costs might get steep too with that. Ideally I would just trade the underlying though. When I did the math for myself I estimated that you would need at least low 7 figures in your trading account to do that at the right size with diversification though.
  20. ex3y7s

    Welcome to Steady Futures

    Yeah, this makes a lot of sense. Is it accurate to say we are fighting the fact that options are far from an ideal vehicle for this sort of strategy? Obviously we can't just buy/sell the futures directly unless we revise our account size to include at least a few more zeroes. 😉
  21. The out of the money nature of some of these positions really hurts the system performance and increases volatility drastically versus trading at the money. Unfortunately trading at the money on a $25K account size is too big for many of these contracts. I'll give you an example from one of the contracts we publish signals on but don't trade, ES. The system signaled ES long on February 3rd and switched directions to short on May 26th. This captured the trend in ES almost perfectly. But based on our risk parameters you would have bought something like a 7 delta call in February and experienced a 100% loss on the position even though the direction was right. ATM would have booked a solid win but would have required roughly 7X the risk we would normally take. We're actively trying to figure out a way to solve for this now. That may mean starting with a longer term trend system layered on top of the current signals and requiring both systems to be in agreement to take a position. This doesn't address the size issue but would cut weekly vol pretty drastically (while also causing us to miss some wins). If we got the vol down enough though we may be able to look at bigger position sizes. We're just not sure yet. Another answer could be to raise our delta threshold for trading a contract to something closer to ATM. This would reduce diversification but improve signals results. As Rich said we're actively looking at improvements for this problem now.
  22. RapperT

    Welcome to Steady Futures

    There have been some others where we could’ve gone either way, but none I can think of in which the option was basically worthless and we kept it open without adding exposure. There were a couple instances in which we left the low delta position open and opened a new one as well. It’s a good question.
  23. ex3y7s

    Welcome to Steady Futures

    Gotcha--thanks for the reply. I thought we were in this scenario for NG at one point and a few other contracts, but I haven't kept detailed notes of the deltas at the time of each roll so I may be misremembering.
  24. RapperT

    Welcome to Steady Futures

    The CL position is not really a normal example. There are no instances i can think of in which the disparity has been that significant. CL positions have been losing in some cases even when trend is in our favor. Most of these CL options are so far otm that we are having issues with vol and trade performance relative to the trend. John and I are discussing what to do. you can certainly open a new position this am. Summary should be up this week. Edit: spelling error
  25. ex3y7s

    Welcome to Steady Futures

    Hi guys, two quick questions. First, when will the May performance summary be up? Second and more importantly: I'm wondering how the decision to keep positions open from week to week (as opposed to rolling) if the trend hasn't changed is made. I notice we often haven't been rolling positions even when their deltas drop drastically. For example: our CL position is the 73 Aug calls which currently have a delta of just 0.020, effectively meaning we have virtually no exposure to CL barring some huge upside reversal. The spreadsheet says our delta for CL should instead be 0.12. Why do we keep positions open in these cases instead of rolling to a closer strike to stay closer to the desired delta?
  26. We are pleased to offer the following bundles to our members: All 4 Services Bundle Quarterly at $745/Quarter (save over 40%) Yearly at $2,495/year (save over 50%) This bundles includes subscription to all 4 services, and all new services that we offer will be automatically included at no extra cost. You also get OptionNET Explorer Software for 12 months with the Yearly Bundle (~$600 value). Conditions apply - click here for details. Anchor / Steady Momentum Bundle Yearly at $995/year (save over 50%) 2 Services Bundle Yearly at $1,745/year Get any 2 services at discounted price. After subscribing, please let us know which 2 services you are interested in. You will be eligible to switch to another service once per term. Please note that bundles have NO Free Trial. All members are grandfathered at prices they sign up at.
  27. RapperT

    Welcome to Steady Futures

    Should have signals up shortly, sorry for the delay
  28. ex3y7s

    Welcome to Steady Futures

    When will the signals/rolls be posted? No rush--just trying to plan my morning around some meetings.
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