Option Trading

[omad]

Is anyone trading options?

I'm an active option trader and happy to discuss if anyone is interested.

[blackcap]

On which markets are you trading and what platforms are you using? I presume its not NZ as we do not have an options market.

[omad]

I trade the US market through Interactive Brokers, I use their platform Trader Work Station.

I don't follow the NZ market at all, I remember reading years ago they were going to introduce options but I guess it never happened. Even if they did have options in NZ the lack of liquidity would make them hard to trade.

[omad]

Looks like they are going to introduce options here, a quick google search found this:

https://www.nzx.com/Derivatives

[lou]

How would you describe your strategy for trading options?
Do you have other investments?
Do you do it full time?
What type of options do you trade?
What volume do you do?
What fees do you pay?

[omad]

I sell premium and my trading is based on probabilities – as far as what specific option strategy I use it all depends on volatility.

No other investments outside my trading account, I'm a trader not a long term investor. I also trade futures and shares although shares are always a part of an option position.

My trading is about 80% of my total income, I plan on making it 100% next year. I'm always in front of the screen for market opening and then it depends on what's happening in the market as to how much time I spend, if there is some action I'll stay till market close but if nothing is going on I'll go back to bed for a few hours then be back for the close.

I trade options on equities and ETFs mainly, I sell some futures options occasionally to defend a position that has gone against me. I have a watch list of about 45 stocks & ETFs that have liquid options and mainly trade them.

I do 70-100 trades a month and I would spend between US $400 - $700 per month in commissions.

[h2so4]

Do you spend time in the outernet?

[omad]

Do you spend time in the outernet?

More than most.

[david298]

I have a tax query. I trade stock options in the US market so have exchange rate (ER) complications for calculating NZ tax. I am calculating tax on monthly profits/losses based on the varying mid month ER value provided by the tax dept. Is this correct?

Also, how must any ER advantage/disadvantage from opening balance to closing balance in my trading account for the the tax year be taken into account? Is this shown as a tax gain/loss or taken into account in my books of account as a capital gain/loss. I presume I would use the ER provided by the IRD at opening and closing day dates for the tax year?

Any advice much appreciated thanks

[david298]

Hi Omad. I also trade with IB on TWS in the US markets. After trying many trading systems over the years, I am focusing on trading Collars selling premium on the weekly options.

I have recently started trading a simple system, only as an end of day trader. I am using a simple volatility expansion breakout chart scan to find trades.

Maybe we can compare notes on trading if you are interested? There don't seem to be many traders in this forum (or NZ) trading the US options market.