Futures options

Discussion in 'Index Futures' started by rickf, Apr 16, 2010.

  1. rickf


    Anyone here trade options on the /ES? I'm noticing that trying to get a fill on a vertical spread - even when there's significant volume @ my strikes - seems to be impossible via ToS. Is there something I'm missing in placing orders on them?

    Just curious. For whatever reason I felt better holding /ES options over the weekend than the actual futures.....though in retrospect, I probably should just use the futures, since that's what I trade anyway, and what I know....
  2. why ES?...way better off trading SPY options...more volume, better trading platforms etc etc
  3. IQuant


    Spy options versus ES options:

    5 SPY options = 1 ES Option

    SPY Strikes are spread twice as far as ES:
    1.00 versus 5 points.

    Spread: 0.01 - 0.02 versus .50 - 1.00
    ($5-$10 versus $25 - $50 using 5 spy = 1 es)

    ES options are available 23h/day but generally liquid with tighter spreads during RTH's.

    Tax consequences: 60/40 ES versus 100% short term SPY
  4. show me one site that gives free or even delayed ES options quotes...hundreds sites give SPY options quotes
  5. IQuant


    Are you serious?
    CME Group

    Check your data feed
    All TT Brokers

    Now I'm not saying ES options are better to trade than SPY.
    Just pointing out some differences for further dialog.

  6. Great points IQuant. Also, ES offers weekly options, SPY doesn't.

  7. Lets add to the list.


    SPAN Portfolio Margining for ES and ES options

    SPY Margin: Uncovered writers must deposit 100% of the options proceeds plus 15% of the aggregate contract value (current SPDR price multiplied by $100) minus the amount by which the option is out-of-the-money, if any. Minimum margin is 100% of the option proceeds plus 10% of the aggregate contract value. Long puts or calls must be paid in full.

    ES @ $5 RT
    (5) SPY @ $5 - $15 per side

    +1 on Tax treatment

    SPX options because they settle in cash may be eligible for 60/40 treatment.

    What about gamma scalping SPY options covered with ES options?
    You'll have issues with the premiums being tied up for margining until the position expires or is unwound. Transactional costs might be high but you should be cash positive with minimal overall risk.
  8. actually I've got demo futures options trades live on the 10YR (very liquid) and Gold futures...gonna do Corn options tonight or tomorrow...

    the 10yr expires in 2 days and the Gold in 6 days...corn in 2 days...never made a futures options trade yet...