S&P futures options

Discussion in 'Options' started by rickty, Dec 8, 2001.

  1. rickty


    There is a very interesting article in the current issue of CRB Trader (which is probably also freely accessible on the web) dealing with writing put credit spreads on the S&P futures index. However, what is unclear to me is whether there is an advantage in writing an option on the futures as opposed to the cash index. I'm interested in hearing all thoughts regarding this.

    The bid-ask spread on ATM options on the cash S&P index runs about 2-3 points, which is really quite appreciable. Does anyone know if the corresponding spread on the futures option is less?