Jumbo Dow Options?

Discussion in 'Options' started by traderjb, Oct 6, 2005.

  1. Saw on the CBOE's website that they are going to have a new Dow index option, "Jumbo" Dxl options. Curious, I looked into this, its essentially the DJX but with prices at 1/10th the price of the ol' Dow 30. I currently trade the DJX or Diamonds, dunno about this. I wonder if this will simply sap liquidity from the other contracts. What do you all think about these Jumbos?
  2. The YM futures options are priced to the forward/cash at the full 10k+ print, and retain SPAN margin. They're $5/tick and typical atm markets are 6-ticks wide.