Anyone trading the CME Options?

Discussion in 'Options' started by jllm03, Aug 22, 2006.

  1. jllm03

    jllm03

    Just looking to see how many traders have traded in the CME Option (CME Holdings).

    This looks like a good short term play with a trading window between 430 and 500.
    It has retreated each time near the 500-510 range(3 times), and the last support was around 420-430.

    Any input?
     
  2. I''m on par with that sentiment. I usually sell premium each month on this issue, via iron condor or double diagonal. I had to adjust yesterday as my 450 short was in danger of being violated, now I have 420-490 shorts and bot wings +10 points. It's a tight range yes, but I'm hoping for oscillation/consolidation into sept expiry.

    Vols are at the 'lower end' of their recent range so premiums aren't that juicy on a relative basis.

    You could trade out month backspreads, or buy atm calendars.
     
  3. Earlier this year when it looked undervalued to me I did a bit of option trading with success. When it hit close to 500 I didn't see much upside so haven't followed it recently. Played ISE instead.
     
  4. jllm03

    jllm03

    Just evaluating whether to look at this as one for a the credit spread trade prospect for this coming options cycle.
    I like to trade a call spread near the resistance or the put spread near support levels, especially when the underlying instrument is bouncing back and forth.
    I will keep watching to see if it will be favorable.
     
  5. Hybone

    Hybone

    CME was added to the S&P500 earlier this month so its vol has been lower.