SPX 500 Liquidity

Discussion in 'Options' started by CBC, May 30, 2013.

  1. CBC


    Hi guys,

    I'v been trading options here is AUZ for a while now and due to the current market I've decided to look to the US for new pasture. Here is AUZ we have the S&P ASX 200 which have options however you cant really go outside the top 20 without been meet with serious liquidity problems.

    I know in the US that you guys have a much much bigger market, however before I try entering the SPX 500 members into my IB watchlists for serious analysis. I was wondering if I should only stick with, say the top 200 members.

    Thanks for your answers is advanced, it shall save me a lot of time. I would be looking to use $5k on a contract with max $10k per underlying.

  2. ES the most used idex for the trading you describe encompasses all 500 stocks. I can assure you the liquidity is second to none. During RTH it is one of the most liquid markets in the world.
  3. CBC


    Hey Swan, Ty for the reply however I don't think I asked the question properly,

    I wanted to know out of the top 500 us stocks, which ones I could trade options on.


    Out of these companies, will I get met with any liquidity problems?

    I'm aware of the S&P 500 index options however I was looking for stock options.

    So is it the top 100, 200?

    I just wanted to know cauz I know nothing about the US. I didn't want to spend a whole day putting 500 stocks into my IB watchlists if I wasn't going to use them all.

  4. Over 400 names will be liquid enough for the most demanding retail account.
  5. CBC


    Thanks m8,

    long day ahead......
  6. Have a look at the Dow 30 stocks mate. Cheers!
  7. Take the S&P 500 stock list and sort by average daily volume. Generally the daily volume of the stock correlates with its option liquidity. Of course most of the S&P 500 stocks are heavy hitters anyway.

    Depending on what option strategies you're looking at, you might also want to filter for higher priced stocks.

    I just filtered for optionable stocks with average volume > 1M and price > $30 and got 308 out of 500 (not all stocks in the S&P 500 are optionable)
  8. CBC


    Thanks for all the help guys.