Options - Please Help !!!

Discussion in 'Options' started by Aranha, Jun 5, 2003.

  1. Aranha


    Dear friends,

    What are the most liquid options in the US markets and also do you guys know what are the most liquid OPTIONS MARKET around the world?

    Thank you in advance for your help.


  2. for domestic markets, opinions will vary I am sure..but if your talking about very tight spreads, only a nickel and the ability to dump size on the bid or pick up size by taking the ask, without scaring everyone away and playing chase - you would be hard pressed to find something better than the triple Q's.....
  3. jessie


    It's also a bit more complicated than just total liquidity, as different markets have different kinds of order flow. For example, in pit-traded futures options, you can usually get in and out of small size in bean options with a one tick spread ($6.25) even in deep OTM stuff, because there are a couple of arb firms that do the other side of any small stuff, regardless of strike. In the Ten Year option pit, there is MUCH higher volume, but it is concentrated in very large orders (1000+, often much larger) in a relatively few strikes, so if you are doing anything else, you are going to get a bit screwed. Futures pits are much the same, in terms of being idiosyncratic. There are lots of people in the ED pit who spread 40 different futures contracts with a good bid & ask, and other pits where if you aren't trading front month, you will get killed, even if the overall total volume & open interest is high. In the E's, just get on the screen and watch and get a feel for bid & ask & size and depth of what you think you want to trade. It's right there in front of you. It really pays to take some time and get to know both the "numbers" as well as the specific characteristics of what you are trading.
    Good Trading
  4. Aranha


    Well, first off thank you for your posts.

    Actually, I'm looking for a very liquid market to Daytrade...that's why I'm the need for very tight spreads.

    I'll check what you guys recommended.

    If anybody else has opinions...please share with us.

    Also, what about european markets...are they strong in options? Which market?


  5. etrader


    I don't know if it's still true but I know for a while the SPX on the CBOE is or use to be the largest liquidity pit in the world.
  6. JayS


  7. Aranha


    Thank you guys.

    DO you know where can I find a software to provide me quotes and charts for this exchange?


  8. Trajan


    Does anybody here actually trade this? Through whom?
  9. sp 500 future options and crude are highly liquid.
  10. Are there any restrictions on daytrading options,such as the PDT rule or anything else?
    #10     Jun 6, 2003