Why the QQQQ and DIA option chain for end of month?

Discussion in 'Options' started by forex-forex, Mar 27, 2009.

  1. What is the purpose of the option chains at the end of the month for QQQQ and DIA? They are very expensive. A OTM QQQQ 31/30 Call credit spread with the Mon, Mar 30, 2009 options will bring in $0.36 with one day to expiration. Maximum loss only $0.64. Am I missing something?

  2. One of the main reason's the 'quarterlies' were invented was because alot of the big banks, trading firms, and individuals have certain things they like to have on for the end of the quarter. Different hedges, so on and so on. The exchanges thought there would be a market for these options. Thus far, there hasn't been much of a market. Relative to the other options the open interest is rather low for these.