Options on Futures: Worth It?

Discussion in 'Options' started by btowntrader54, Feb 15, 2008.

  1. MTE

    MTE

    Options on futures trade on the same exchange the futures trade, so in case of S&P 500 futures, it is the CME.

    To answer the question of whether the option price will swing or not I suggest reading a book or two on options.
     
    #11     Feb 21, 2008
  2. Trade the futures directly, they are more liquid and the spreads are smaller. Use the future options to hedge overnight risk if you take leveraged positions (pointvalue x futureprice x #ofcontracts > account liquidation value) overnight.
     
    #12     Feb 21, 2008
  3. I'm interested in using options to hedge my overnight long positions in index futures. I'm thinking I'll probably stay naked for the short positions. I'm really just looking for disaster protection.

    I'd be interested in hearing how others do this, and how well it works. Currently I mostly trade the ES and ER minis.
     
    #13     Feb 23, 2008