K(ospi)200 Option Chains

Discussion in 'Options' started by lejmorro, Aug 23, 2009.

  1. lejmorro


    The liqidity, commissions etc of the K200 option chains (as offred by IB) seem to be a great platform for trading option spreads except -

    the option chains are ridiculously skewed!

    ie right now K200 Index is 210+, the Sep 09 option chains on the put side go back to 125, the Sep 09 option chains on the call side are cutting out at 222.5 (less than 6% above the spot). Even worse for diagonals, calendars etc there is no improvement in the Oct 09, Nov 09 and Dec 09 option chains.

    The volumes on the out of the money calls indicate the lemming-like frenzy on the call side e.g. the current volume after less than 2 hours trading on this Monday morning are 125,000+ for the 212.5 call rising to 520000+ for the 222.5 call - then nothing.

    Does anyone know why the Korean Exchange (KRX) doesnt do something about it? Volumes on the call side a long way past 222.5 would be high.

    There isnt an email address on the KRX to query. Any other bodies worth asking?