CME serial month options

Discussion in 'Options' started by SysVolTrader, Dec 29, 2016.

  1. Hello all,

    Does anyone know why CME has stopped listing FX and ES monthly serial options (Jan, Feb, Apr, May, Jul, Aug, Oct, Nov)?

    Where most of the liquidity of these serial month options went?
     
  2. MattZ

    MattZ Sponsor

    Consider the weekly Fri and Wed Options expirations.
     
  3. Thanks for the info.
    This is for ES options, right? What about FX options?
     
  4. MattZ

    MattZ Sponsor

    Yes, this is for ES Options. This is the instrument the majority of our customers trade.
    As for FX, I know they have added Euro style options, but I did not dig into this a lot because we don't have lots of demand for this options. However, I hope this helps http://www.cmegroup.com/market-data/volume-open-interest/fx-volume.html
     
  5. Can't speak to FX as I have nothing to do with the foreign currency exchange market. But, as for the E-mini S&P 500 futures options, there are 4 types of options for the ES. American style (the quarterlys) and European style (EOM, Weekly and Weekly (Wednesday)).

    To answer your question, Back in January 2016 the CME, in Advisory Notice Chadv 16-205, stated, in part;

    Effective Sunday, February 21, (trade date Monday, February 22) Chicago Mercantile Exchange, Inc. (CME or EXCHANGE) will list..

    1) Week 3 European Style Options (EV3) on Standard and Poor's 500 Stock Price Index Futures replacing American Style Serial Options on Standard and Poor's 500 Stock Price IndexTM Futures, and

    2) Week 3 European Style Options (EW3) on E-mini Standard and Poor's 500 Stock Price Index Futures replacing American Style Serial Options on E-mini Standard and Poor's 500 Stock Price Index Futures.

    April 2016 and May 2016 American Style Serial Options currently listed for trading will not be affected and will expire as regularly scheduled. No new American Style Serial option months will be listed upon expiration of these option contracts.

    In other words the Weeklys replaced the Serials.

    For more information you can view the entire Advisory Notice here;

    CME Group Advisory Notice
    http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv16-025A.pdf

    For more information on the ES options including both American style and European Style (EOM, WKLY, WKLY Wed.) see the following;

    Weekly and End-of-Month Equity Index Options on Futures
    http://www.cmegroup.com/trading/equity-index/files/advantages-eq-options.pdf
    http://www.cmegroup.com/trading/equity-index/weekly-eom-options-faq.html

    E-mini S&P 500 Options Contract Specifications

    http://www.cmegroup.com/trading/equ...ontractSpecs_options.html#optionProductId=136

    http://www.cmegroup.com/trading/equ...ontractSpecs_options.html#optionProductId=138

    http://www.cmegroup.com/trading/equ...ntractSpecs_options.html#optionProductId=2915

    http://www.cmegroup.com/trading/equ...ntractSpecs_options.html#optionProductId=8227


    Also see Chapter 358 and 358A of the CME's Rulebook

    https://www.cmegroup.com/rulebook/CME/

    https://www.cmegroup.com/rulebook/CME/IV/350/358A/358A.pdf


    For anyone trading any product (Options, Futures, Stocks, ETFs, etc) it's important to study and understand the mechanics of what you're trading. Contract specs, minimum tick size, expiration time and day, and so on. One of the best places to get that information, in the case of futures options, is the CME's website.

    Best

    Steve
     
    Stymie likes this.