Index Futures Options

Discussion in 'Index Futures' started by stevieoh, Aug 4, 2002.

  1. stevieoh


    Anyone have a website or have any info they can share on Index Futures Options. I want to learn about them......seems to me there might be some reason to trade them sometime.

    I have pulled up a few different options on the ES but did not even see one trade go through.

    I am wondering if they are similar to stock options as far as greeks/leverage goes.

    Any info appreciated.
  2. wild


  3. daxman


    the CME has never really promoted the product electronically
    a long time ago they were going to have Hull or one of the marketmakers keep those markets updated...but never went thru.
    If you want to see any prices the SP options are primarily traded still on the floors
    SP500 futures at the CME
    OEX and SPX (cash 100 and 500) options at the CBOE

    greeks etc are all the same as standard stock options
    traditionally volatility is extremely high on the puts and slopes to lower vol numbers in the calls

    but go to the floor for now- otherwise you will be watching a blank call/put screen for a while
  4. yaruyaru


    i have traded es options on occassion. yes, the main reason that no one trades them is due to the lack of volume, thus keeping the spreads murderously wide--in some cases almost 5 dollars.

    i have never bought more than 5 at a time for fear that i wouldn't have any liquidty to sell into when the time came.

    the only benefit i can see to them--over spx options--is that they are quite cheap--half the face value--and so you are further leveraging yourself while also protecting yourself from the downside of futures maitenance margins.

    if you are an undercapitalized trader, by all means, swing trade the es options series, they are the best bet to protect capital AND meet profit objectives.

    i've decided to swing trade equity options instead--or dow mini futures--when i want to capture an overnight move. otherwise the intraday margins on es should be able to satisfy even the most razor thin capitalized margins.