Search results

If you are going to trade these spreads, make sure you enter them as a spread. If the order goes directly into the CBOE Complex order book (COB) the "inside market" is really very tight. Probably about .15 to .20 around fair value of the entire spread (this would be equivalent of giving up 1.5...

That's .50 a contract (each way) If you trade 300 contracts a day that is $150 a day or $36,000 a year. Not an insignificant amount.

I think the PM settlement is better as well. You don't have the morning mark risk. The question is what the liquidity will be like compared the the pit traded product. The pit actually has very deep tight markets, they just don't quote them on the screen, so it is a tough product to trade for...

Not exactly what we have been waiting for. These are SPX PM settled options. Slightly different from the pit traded SPX options currently traded that expire in the morning.

The two exchange traded binaries are the BVZ and BSZ. These represent the VIX and the SPX and are traded on the CBOE. I would agree with what Deltahedge posted. The markets are relatively wide and many brokerage houses don't allow you to trade them, mainly because their risk programs have...

If you sold the put, you need to buy it back, so you don't care if there is no bid. You are interested in what the offer is.

Currently the CBOE offers Binaries on the SPX and VIX. Monthly expiration. Not a lot of Volume, but and interesting trade.

IMM seat leasing currently for $1,300 a month. As mentioned earlier check into the LLC rebate program.

I believe the CME also gave/gives a large rebate of your fees back if you trade in a LLC and meet certain conditions (without owning/leasing a membership). You may also want to check into this.

The current market (best bid and ask of all the exchanges quoting) is .83-1.10. I see 2 contracts traded with a last of 1. The 1.10 offer is currently for a 20 lot so my guess is it is a limit order instead of a market maker quote. This tells me the inside market bid is closer to the 1.10...

The SPX weekly options now trade on the Hybrid System. Tighter markets and if you see a bid or offer will be traded electronically. The weeklies now have PM settlement on Friday. Still waiting for the regular SPX options to trade on the C2 electronically. They are still saying some time...

The spread must be entered in nickles in the SPX and OEX and it must trade in nickles, but the prices used may be in pennies. For example you may see .26 and .51 for a spread that traded at .25.

Your spread was rejected because you offered it in pennies. In the SPX is must be in nickels. You can offer it at .25 or .30, but not .27

Are you trying to BUY this put spread for a credit? A change was made awhile ago so you can no longer enter this type of spread into the CBOE spread book in the SPX.

Although the quoted markets are quite wide the "inside markets" where the options actually trade are fairly tight. Good for a professional, but difficult for a public customer. Quoted markets should become much tighter soon when SPX options are traded on the new C2 exchange all electronically.

Because you would expect them to be "in the money" when the stock begins to trade. By exercising the Nov 5 puts you are selling the stock for $5. Even though the last trade is over 6, one might be happy to sell it for $5 after this news came out.

Even if the options weren't auto exercised, you could still request to exercise your puts even if the are "out of the money".

For those who are having their accounts closed, do you have individual accounts through GS or are you trading through someone?

Absolutely true. I have seen this many times. A customer starts selling out of the money spreads. They make money over and over again. They keep increasing their size and boom, the big move takes place and they are wiped out. Sooner or later it will happen

For those of you who are interested in seeing what spreads are currently being offered or bid, the CBOE has a link to the COB, or Complex order book. This will list all spreads listed at the CBOE that are currently able to be bought/sold electronically (If a broker is holding the order it may...