Options on E-mini S&P500

Discussion in 'Options' started by KSEtrader, Dec 25, 2009.

  1. KSEtrader


    I do not actively trade the US market however I do actively follow them. At this moment, in my view, the US equity markets are over stretched and are due for a rebound.

    Rather than taking an outright position I am thinking about buying some put options on the E-mini S&P 500. Having never traded index options before, my question is that what is the multiplier used on option prices on ES? e.g last close on 1115.00 June 2010 put was 64.50. Is this the absolute price of the option or is any multiplier (I am guessing 50) is used?
  2. yup... multiplier is 50... Also, understand that 1option contract obligates 1 futures contract. This is UNLIKE the equity market, where 1 option contract obligates 100 shares...

  3. Div_Arb


    yep just divide by two to get the price.. i.e 64.50/2=$32.25
  4. Multiplier is 50. If buying one JUN 2010 with a strike of 1115 @64.50, the cost of one put is equal to $3225.00
  5. You may find the total premium of the option in barchart:

    By the way, it is very unlikely that you'll catch an exact turning point, so it's better to divide the trades over several months.
    (say 1/6 of the amount you intend to spend in put options, each month, for 6 months).