Any Index Futures Spread Traders here?

Discussion in 'Index Futures' started by J_Smith, Jun 30, 2016.

  1. J_Smith

    J_Smith

    No, just the the Italian MIB makes huge moves in the day - the futures is €5 multiplier with a spread of usually 5 points, while the options are €2.5 multiplier with a spread of around 10 to 25 points for atm options.

    Futures are not for the faint hearted - options can have good payoff for the risk taken on. Some years ago when trading the options, I left a call expire worthless - only to find out next day it made over €1K when settle price was calculated!

    Can of course be pairs traded, same as any other market, but would need a bit of work to see what the best index to pair with would be?

    J_S
     
    #21     Jul 10, 2016
    victorycountry likes this.
  2. I think it depends on the market.
    I know some are very efficient - difficult.
    Can't speak for all tho.
    I haven't done the work to price them.
     
    #22     Jul 10, 2016
  3. Yes they do
     
    #23     Jul 11, 2016
  4. bone

    bone

    The great thing about CTS is that you can lease it on a transaction basis and it caps out. Not an advert but this is true for Advantage Futures.

    We take stock index set-ups from time-to-time for swing trades but its not common for us. Probably because all my guys are so enamored with exchange supported intra-commodity spreads.

    I do have a client who is a CTA and he trades ES vs NQ for one of his funds. The Dow versus the ICE Russell is another common inter market equity index spread.
     
    #24     Jul 21, 2016