TACO Coming

Discussion in 'Wall St. News' started by ajacobson, Aug 14, 2018.

  1. ajacobson

    ajacobson

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    Trade at Cash Open (TACO)
    Efficiently manage a.m.-expiring options delta
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    With the launch of our TACO market maker program last month, liquidity is trending up and the bid-ask spread is tightening. In July, market participants traded 769 E-mini S&P 500 futures TACO contracts leading up to the a.m. expiry, equivalent to two percent of the market-on-open (MOO) volume* and $107M in notional value.


    With the August SPX options expiry approaching this Friday, August 17, it’s a good time trade TACO and take advantage of growing liquidity and volume. Discover how TACO can help you avoid slippage and better manage risk around the cash index open.


    Learn more

    How TACO Works
    TACO uses the same quoting convention as the Basis Trade at Index Close (BTIC) and allows market participants to execute a basis trade on the E-mini S&P 500 futures relative to the day’s official cash index opening level, ahead of the market’s opening auction. Cash index options traders can use TACO to replace their expiring delta exposure at a price that aligns exactly with the final settlement price of the expiring options.

    *2% of trading volume at NYSE and Nasdaq as of July 20, 2018
     
  2. Not nice to advertise Taco's and put something related only to trading...

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    Last edited: Aug 14, 2018
    newwurldmn and beerntrading like this.
  3. speedo

    speedo

    Carnita's on corn tortilla with grilled onions and smoked jalapeno .....oh and a splash of that tomatillo salsa please.
     
    Last edited: Aug 14, 2018
  4. Last edited by a moderator: Aug 14, 2018
  5. It is actually Taco Tuesday for me now.
     
  6. speedo

    speedo

    :thumbsup:
     
  7. R1234

    R1234

    Not quite sure what this is. Sounds a bit like TAS orders.
    Either way I hope it's offered at Interactive Brokers (TAS is not).
     
  8. R1234

    R1234

    Cool. Looks like BTIC (trade at cash close) and TACO (trade at cash open) trading is already available on TD Ameritrade. Contract symbols /EST and /ESQ