isn't that usually an indication that there isn't alot of volume in the options? If anyone has the link to volume for the mini dow options on the cbot site I would appreciate it, because I haven't found anything but what they call a live feed, which I'm not interested in.
It is true that a wide spread indicates light volume in an issue. This I can understand for individual stocks...the spec taking the other side needs some cushion for taking the added risk. But for index options it is absolute thievery. I gave the SPX options a shot last year for directional plays, made 10 trades with a 70% accuracy rate and made a whole $300.00. When I want in I hit bids and lift offers...thats just the type of trader I am...cant stand to see the mkt move away because I am being a cheapskate. I would take the bid or offer and because of that 2 point spread would need the index to move 5 points in my direction to just break even. The only way I trade them now is when I find a nice time decay play. Chris
New Dow Products Off To A Great Start Even though it has only been trading for a few days, the bid-offer spreads on CBOT mini-sized Dow options are tighter and have greater quantities than comparible index options. Mini-sized Dow options are 100% electronically traded and are available for trading 21 hours per day. You will see: Average at-the-money bid-offer spread: 6 ticks Average size at the bid & offer: 200 contracts Source: www.cbot.com/cbot/pub/page/0,3181,930,00.html See also: www.cbot.com/dow Remember (OYM orders still rejected, CNVCATT):
Can you trade within the spread with YM options? DIA takes around a minute before they post my option bids/offers, and (at least this past Friday, when I was watching pretty intently), my offers would occasionally be unposted for 10-30 seconds, then get reinstated.
Your limit orders for OYM will be shown immediately. Electronic markets (ISE, BOX, CBOE, PSE, ECBOT) do not have such "delays". Non-electronic markets (AMEX, PHLX) allow the MMs to hold your order for a certain amount of time. BTW, IB seem to have fixed the problem with OYM orders.
Yes, you can beat the $.06 atm spread by a couple pennies, better than the ES in that respect. I did 200 atm straddles in YM on Monday and was pleased with the fills, better contract than the ES, IMHO. riskarb
Other than the dow options , are there any other options on futures that are currently tradable for US retail traders? I looked at IB's site and under products, the interest rate options ZN,ZB,etc seem to have options listed. Are the spreads thin? Are they like the Eurex bund options where the prints are just put up whle the actual buy/sell in done OTC by telephone? Thanks
IB retail customers cannot trade options on ZB (ZN, ZF, ZT). Probably because of physical settlement for the underlying interest rate futures.
Chicago, IL, April 6, 2004 - The Chicago Board of Trade (CBOT®) announced today that open interest in its options on mini-sized DowSM Jones futures reached a new record yesterday, surpassing the 10,000 mark for the first time. Open interest in the CBOT's options on mini-sized Dow futures climbed to 10,538 contracts, compared with the prior record of 9,935 contracts reached on April 2. Launched in February 2004, the contract is the first CBOT futures on options product to trade exclusively on the exchange's superior electronic trading platform. CBOT President and CEO Bernard W. Dan said, "The success of the CBOT's options on mini-sized Dow futures underscores the premier functionality of our sophisticated electronic trading platform. Our customers value the CBOT market model because it is the exchange that specializes in offering highly liquid, transparent markets. The CBOT's mini-sized Dow options market makers are doing an excellent job of providing tight, deep markets in what has become one of the exchange's fastest growing options product." The open interest record coincides with significant volume increases in the underlying CBOT mini-sized Dow futures contract, which posted average daily volume of 89,215 contracts in March, up 150 percent from March 2003. For more information on CBOT products, visit our website at www.cbot.com