Anyone trading options on Silver? What platform?

Discussion in 'Stocks & Derivatives' started by BiGs, Oct 20, 2020.

  1. BiGs

    BiGs Active Member

    Joined:
    Jan 20, 2014
    Messages:
    875
    Likes Received:
    108
    Trophy Points:
    43
    Location:
    Sydney
    I'm keen to try develop an option trading strategy over my physical to increase its ounces over time. I've always traded derivatives on IG markets and they do have silver options on a 5000oz comex contract however the spread is a whopping 10 points ($500 USD per contract) and I also have liquidity concerns (see attached). The gold spread looks much better, but I'm more interested in silver. I tried plus500 and they only have gold options. avatrade I don't think has any commody options, but im not sure as they don't have a demo account I can see and they don't show any option markets publicly. Through my commsec account I don't see any option market on the ASX silver ETF (ETPMAG) however I look at the nyse website I do see options on SLV ETF. (https://www.nasdaq.com/market-activity/funds-and-etfs/slv/option-chain) I do prefer the stock broker option trading style over the pure premium market style of CFD options.

    Has anyone dabbled in commodity options? Feasible to write against your stack to make some side cash? Keen to have a chat about it. In the mean time I might poke Commsec and see if I can activate US stocks to see what's available.
     

    Attached Files:

  2. jroly

    jroly Member

    Joined:
    Mar 31, 2013
    Messages:
    41
    Likes Received:
    19
    Trophy Points:
    8
    Location:
    Australia
    ETPMAG mag should be there on commsec, it's on my selfwealth account. From what I have read is gold is easier to trade than silver, the moving averages work better. I have a core position in g&s from years ago, I trade gold stocks on the asx with my funny money. I wouldn't trade stuff on IG markets, just stick to the standard asx, etpmag is there and probably the cheapest way to trade silver, if your feeling really bullish can always buy svl though the clip @.20 is 2.5%
     
    BiGs likes this.
  3. BiGs

    BiGs Active Member

    Joined:
    Jan 20, 2014
    Messages:
    875
    Likes Received:
    108
    Trophy Points:
    43
    Location:
    Sydney
    Thanks for the comment jroly. I'm more asking about the 'options' market for silver. Options are a sub market that are traditionally traded on blue chip stocks through a stock broker. Enables you to essentially act as a bookie on your owned asset, selling risk adverse bets (rights) to other speculators. The great thing about options is there is no margin or cash needed to write an option that's backed by the underlying asset, putting it to work for you. There is obviously barriers when trying to do this with a physically owned commodity, hence this thread. But you still could trade 'naked' silver options, covering with cash/margin with the backbone that you do really have x amount of silver that you can incorporate into a strategy. However with the liquidity issues on the expensive CFD options, plus not having my stack in an ETF to cover my options via SLV, I'm not liking my odds of this working well.

    My international stocks application with commsec is in. They saying covid delayed 10 working days. That IG spread would have a lower tier, being such crap liquidity is why it's staying on that 10 pips.

    If anyone does have any commodity options experience, please share.
     
  4. long88

    long88 Member

    Joined:
    Jun 19, 2012
    Messages:
    779
    Likes Received:
    12
    Trophy Points:
    18
    Location:
    Melbourne
    you want to trade slv ? or the futures products ? /gc /si.

    you can do all options strategy on those products as well. (call, put, iron condor)
     
    BiGs likes this.
  5. BiGs

    BiGs Active Member

    Joined:
    Jan 20, 2014
    Messages:
    875
    Likes Received:
    108
    Trophy Points:
    43
    Location:
    Sydney
    Either. Whatever will work best for me. What platform would you use for option futures on commodities? and is the liquidity there? Unfeasible to cash cover ETF options, but I will investigate what's possible on SLV via commsec.
     
  6. long88

    long88 Member

    Joined:
    Jun 19, 2012
    Messages:
    779
    Likes Received:
    12
    Trophy Points:
    18
    Location:
    Melbourne
    i am using tasty trade for all of those.

    futures product are more capital efficient and can trade almost 24 / 7

    pls use my referral for sign up: https://start.tastyworks.com/#/login?referralCode=BXJVG4BXT7
     
    BiGs likes this.
  7. BiGs

    BiGs Active Member

    Joined:
    Jan 20, 2014
    Messages:
    875
    Likes Received:
    108
    Trophy Points:
    43
    Location:
    Sydney
    Perfect. Thanks long88! That looks like exactly the US based & options focused platform I was hoping to find. I will do a bit of research on them first, but I'll defs use your referral when I sign up. Cheers.

    And yeah, since I will be shadowing my physical with naked option writing, capital is an issue so the leveraged part of this is important. Hopefully the silver option market they offer has good liquidity.
     
  8. long88

    long88 Member

    Joined:
    Jun 19, 2012
    Messages:
    779
    Likes Received:
    12
    Trophy Points:
    18
    Location:
    Melbourne
    Inbox me, i can talk to you more about all of the platform etc, save you time learning all of the stuff by yourself.
     
    BiGs likes this.
  9. BiGs

    BiGs Active Member

    Joined:
    Jan 20, 2014
    Messages:
    875
    Likes Received:
    108
    Trophy Points:
    43
    Location:
    Sydney
    tastyworks Australia Pty Ltd ACN 623 542 969 AFSL No. 508867

    I signed up. What is the referral bonus based on? Do I have a time limit for you to get a % ? Inbox if you want.

    Commsec have already activated US shares too, that was fast. I see SLV options and ok liquidity. I need to upgrade my options account through comsec to margin lending though, which is a 2 step jump and they seem to have a temp block on all upgrades beyond my level currently. They claim because of covid, but I'll ring them at some time and see if I can apply manually.
     
  10. long88

    long88 Member

    Joined:
    Jun 19, 2012
    Messages:
    779
    Likes Received:
    12
    Trophy Points:
    18
    Location:
    Melbourne
    good luck on commsec options.

    the best so far i got through is covered call position. nothing else. and not to mentioned the exhorbitant trading commisions $30/transactions, makes it prohibitive to make trade adjustments if it goes against you.

    once your account is setup, i can guide you through interface etc. so you can get in the trade easily. and minimize mistake.


    just dm me.



     
    BiGs likes this.
  11. screaming eagle

    screaming eagle Member Silver Stacker

    Joined:
    Jan 5, 2014
    Messages:
    443
    Likes Received:
    13
    Trophy Points:
    18
    Location:
    WA
    Quantfury is definitely worth a look, no fees and same prices/orderbook as those available on COMEX for the monthly SIZ20 contract. Only on mobile app interface and your account balance is funded with crypto, but gives the best trading conditions that I can find.
     
    BiGs likes this.
  12. BiGs

    BiGs Active Member

    Joined:
    Jan 20, 2014
    Messages:
    875
    Likes Received:
    108
    Trophy Points:
    43
    Location:
    Sydney
    Been told by a mate to open a citi global account as they have good AUD > USD rates. So waiting on that now. Not sure if I can ACH/Wire as if a US account yet though. We'll see.

    MArgin account up and running on tasty. Looks like good volume on the /si monthly futures options book and I think this could work. Applied for the futures enabled account while I sort out funding account

    And yes, commsec has ridiculous brokerage fees and carry their stock fees over to options too, making them almost unfeasible to trade with. And they don't give access to futures, so I think ill can commsec for this purpose. (i knew there was a reason why I stopped using commsec lol)

    Interesting. Only funded by crypto and only phone app? Sounds like they are not operating within licenses and maybe another version of Bitmex haha but I'll check them out. They must make some money in the spreads and if unregulated, they could be manipulating the data at their will. But I'll check it out.
     
  13. screaming eagle

    screaming eagle Member Silver Stacker

    Joined:
    Jan 5, 2014
    Messages:
    443
    Likes Received:
    13
    Trophy Points:
    18
    Location:
    WA
    They're quite decent, they make most of their money out of the trading data and spread-similar to Robinhood in the US. You can actually view the prices and compare them to the exchange at the time, definitely the same and no extra spread thrown in like eToro etc. It's not available to US/Canada, so no SEC license but that's the least of anyone's worries (many products aren't available in the US market). Their trading volume is solid, all trades are recorded on the blockchain and the data is made available at the end of each month. A lot more transparent than any other brokerage and price-wise, IB is the only one that comes close.
     
    BiGs likes this.

Share This Page