CME ES E-mini options contract average daily volume : 59k Dec 07 67k Nov 07 60k Oct 07 56k Sep 07 88k Aug 07 83k July 07 77k June 07 48k sept 06 20k sept 05 11k feb 05 Cooling off. Maybe its the tighter spreads on SPY options, and the introduction of Portfolio Margining.
Portfolio margining for former Reg T users has been around for a while in the form of the old Reg X. ITs only in the last year that its been open to those with small accounts (<150k ) Those small retail accounts are not the ones driving volume. CME to 1000 or 1500 LOL
Me too. Why is not more popular this options expiration? European options with clear settlement fixing price. I guess it depens of the market maker liveliness. Regards
If there is business then more market makers will be attracted and the spreads will tighten and sizes will increase. If there is a real demand for a product then the market will provide it.
Yeah, but first step correspond to market makers. For instance, I'm trading with ES options instead of EW. You know the reason, spreads in EW are wider. But I'd like to trade with EOM options. The european style exercise ease the option valuation and the trading planning. You aren't exposed to early exercise. The exercise is automatic and they don't allow contrarian instruccion on these contracts. You can build ITM strategies eliminating potential disruption by early exercise. Moreover, the special settlement fixing is more clear. I'm sure that I'm not alone and others traders would like to trade with EOM options but they can't or don't want to take the risk associated to this market. Overcoat when ES are so good.
For additional perspective on these volume numbers, the SPX options at the CBOE traded an average daily volume in Dec 07 of 527,456 down from 749,585 in Nov 07.
CME ES E-mini options contract average daily volume : 73k Feb 08 100k Jan 08 59k Dec 07 67k Nov 07 60k Oct 07 56k Sep 07 88k Aug 07 83k July 07 77k June 07 48k sept 06 20k sept 05 11k feb 05
How do you deal with the wide spreads? They can get from .50-1.25 wide. That's $12.50 - $62.50. The SPY options are REAL tight, only a penny or two wide. Thanks.