Russell 2000

Discussion in 'Options' started by jasper6, Dec 8, 2003.

  1. jasper6


    I am researching the use of options in swing trading the Russell 2000. It appears there are options traded on the IShares Russell 2000 ETF (AMEX:IWM) on the CBOE (IWT) and the AMEX (XIP). It also appears there are are options traded on the index itself (RUT) at CBOE. I assume, perhaps, there are also options traded on the Russell 2000 futures.

    My question is: where would I find the most liquidity?
  2. None of 'em are liquid -- lesser of evils would be the cboe index ops.

  3. This is my favorite option trade.

    I trade the large index in 1-3 lots on straight directional bets on the Index itself.

    I do not pay the spread, but instead bid or offer just inside the NBBO and weight for the noice to auto execute against me.

    For directional swing trading, I like this, as R2k has some trend persistency that other indexes dont.

    As always, try to lose as little as possible.