Are spreads on ES options quoted and traded at the CME and by brokers as spreads? I've searched at the CME and could not find any mention of spreads on the electronic options contracts. Thanks for any info.
hh, Thanks. Do you have a link to any info. on ES options spreads trading natively on Globex? I still can't find any information at the CME site, and notice that others here are asking the same question. Also, you have any experience/observations on the bid/ask spreads in the native spread markets?
GLOBEX only accepts limit orders natively--no stop or other market orders. I believe that stop-limits are accepted. Because market orders are not accepted, the two or three legged spreads are not accepted. If I recall, Interactive Brokers will allow ES options spreads because of their platform. Most FCM's do not. The other day I had to leg into a short straddle. If I called the broker and entered the straddle over the phone, it may have been properly executed, but my commission would have been a great deal higher.
Thanks JW. For my trading, I was specfically thinking of limit orders for spread trades, that is, they would be consistent with the orders Globex accepts for individual options. I wonder if IB is routing the legs seperately - I'll ask and see what I find out.
Hi, I'm trading ES Options Spreads with IB and it works pretty good. They assure an absolute legs filling but I don't know how they make it. Perhaps they are working how market makers in this trades filling your spread and hedging with ES futures. I'll wait what you find about it. Regards
I beleive that IB an offer "market" orders and simultanoeus executions of legs because they are market makers.
IB offers butterfly, calendar, straddle, strangle, and vertical spreads on futures options such as ES & ER2. We also offer delta-neutral (future option vs. underlying future) spreads. These spreads may be entered either via the TWS, or our Options Trading Desk (for orders larger than 100 contracts).