Are there any truly liquid indices for trading options?

Discussion in 'Options' started by darkshogun, Jul 8, 2013.

  1. Are there any European index options available for trading that have 'real' liquidity? I have experimented with some good strategies on SPX (for example), but such strategies would amount to garbage since obviously it would be next to impossible to exit the trades before expiration at a fair price. SPY has superior liquidity but I hate American Style options, horrible for options sellers, especially with complex strategies involving atm butterflies. I've heard about the South Korean KOSPI index and it's excellent liquidity, but of course the asshats in the American government won't let us trade it (hate the government, they seem determined to prevent any form of potentially profitable enterprise if they can't regulate it). Are there any truly liquid indices for US options traders out there? If so, which ones?
  2. Why is that? I have been trading SPX butterflies fairly regularly of late and usually get filled at 10 to 15 cents off mid.
  3. kroponer


    Just for reference, there are ES Futures options that are European style, trading with 2-4 ticks spread (ATM, OTM). The American style are usually 2-4 ticks too, though I've seen 1 tick spreads.
  4. I traded an iron fly on SPX this morning (short gamma, delta) and paid 5 cents off mid and it's not on the COB. It's 0.30 higher now. I get excellent fills in SPX and NDX.
  5. sonoma


    I don't get the opposition to SPY, but it sounds like you've made up your mind. In that case, SPX is a fine product. Unless you have to trade a fast market, you shouldn't have to pay up more than a dime. Can you give us an example of the "garbage" you've encountered?
  6. Commish. Why pay a penny or two in edge on a 100 lot when you can pay ten cents in edge on a 10 lot in SPX?
  7. There is no reason for you to be worried about assignment. The strategy is at max PNL if you're getting assigned. Your posts are nonsensical.
  8. sonoma


    Point taken, but I doubt he's trading any material size. My advice is still the SPY, at least until he gets his sea legs.
  9. I don't get what's he's doing. As though the COB and microstructure is an impediment to his "complex" positions. Nobody would attempt to execute a straddled fly as a single order.
  10. sonoma


    Ja. OP will have to weigh-in with specifics to get some advice.
    #10     Jul 8, 2013