Day trade Kospi (K200) Options?

manyit · Oct 31, 2006

I heard Kospi options are liquid. Can anyone share his/her experience in this Kospi options? Is it suitable for day trading? How about the Bid/Ask Spread? Daily movement?

Thank you in advance.

scalpmaster · Oct 31, 2006

these options has no sense of what is OTM,ATM and ITM...
they move whenever and wherever they want to

manyit · Oct 31, 2006

Really? I think because they are European style... So, the market makers can play with the options as they like. Am I right?

FullyArticulate · Oct 31, 2006

Quote from scalpmaster:

these options has no sense of what is OTM,ATM and ITM...
they move whenever and wherever they want to

I wish I had some idea what this means.

If they aren't tracking a reasonable model of pricing, then it's an opportunity.

manyit · Oct 31, 2006

I think what Scalp means is the pricing of those options are erratic?

cvds16 · Oct 31, 2006

if that's the case it's a huge money making opportunity

dcraig · Oct 31, 2006

Quote from cvds16:

if that's the case it's a huge money making opportunity

I dunno. I think you will find thay are highly correlated with the Kospi futures contract which is very liquid. I doubt that things are that easy.

cvds16 · Oct 31, 2006

i doubt it very much myself, I think some people are just talking about things they know not much about ...

manyit · Oct 31, 2006

Well, that's why I ask the question.

The Kospi 200 has a very high margin requirement. If the options are liquid and move like K200, then, day trading the options may be workable.

Kospi 200 future is one of the most liquid future contracts in the world. It is even more liquid than SGXNK (N225 in SGX).

Anyone has experience with K200 or its options?

Marsupilami · Oct 31, 2006

K200 Options are very liquid and definetly daytradable. However, I recall that Kospi 200 Cash Index and its futures contract are two different animals..they are not as tightly correlated as e.g. the ES/Cash S&P, which sucks.