I am interested in trading the SSF what stock or stocks would have the best volatility?I was looking at microsoft and google and was wondering what other ones you might suggest
Go with Goog the vol in the ssf contract is crazy. It can be tough to trade but its better then trading the stock.
you might find this article of interest.... http://www.forbes.com/business/2006/03/21/short-selling-stocks-futures-cx_lm_0322short.html
since when did TimberHill become a market maker in SSF's ? or did the end of the article misquote someone ?
I ventured into them around the time of Hurricane Katrina. I always thought they were a wonderful idea on paper. One Friday, I'm trying to get out of my long AW contracts and the bids just totally disappear. There are none. I can't get out at any price. It sure would be nice to have a specialist or market maker at that point! I ended up getting filled at a horrible price after what seemed like an hour and a half.
Actually, I guess those were WMI contracts. I don't understand why institutions would be interested in these products even if they issued contracts that controlled 1k or 10k shares. The spreads can be killers vs. the spreads of stocks and institutions can get lots of leverage anyways.
CHICAGO, IL - April 3, 2006 - OneChicago, LLC today reported that 395,988 security futures contracts traded at the Exchange in March, advancing first quarter volume to more than 1.6 million contracts, a 60% increase over the year-ago period. Average daily volume (ADV) for the quarter was 26,020. March ADV was 17,217 compared to an ADV of 34,792 in March 2005. Open interest stood at 1,052,747 contracts March 31. To read more of this release, click here: http://www.onechicago.com/060000_press_news/press_news_2006/04032006.html To see volume and open interest by contract, click here: http://www.onechicago.com/060000_press_news/press_news_2006/images/Mar06VolumeReport.pdf