Why do you trade options?

Why not, what's holding period has to do with it?

 

MTE,

Could you comment a bit more on early exercise? I am fairly new to the options world. Is the expiration date or time any different with OEX and XEO?

Thanks........Ron

 

I think the OEX would be better to trade if they multi-listed it.

 

http://elitetrader.com/vb/showthread.php?s=&postid=1323324#post1323324

 

I think he means that the long options have a limited risk, unlike the futures. For overnight position this could be a problem for some people.
It is a true advantage of long options, so that is the reason he trades them, rather than the index being the underlyer.

I myself prefer to go to sleep with delta 0 or <0. (But I do have gamma<0 )

Ursa..

 

XEO is the European expiration version of OEX. SPX has XSP, but XSP is not European expiration, its mini. Is XEO the only European style broad based index options?

 

Most index options are European-style, including SPX, XSP, RUT, NDX, MNX, DJX and etc. OEX is more of an exception being American-style.