Limited strikes

[Bekim]

Why do they have limited number of strikes on the monthly's vs the weekly's I don't get it?

 

[beerntrading]

They'll only have as many strikes as they have liquidity to support.

 

[Bekim]

Monthly's are generally more liquid then weekly's

 

[Robert Morse]

what option?

 

[beerntrading]

Monthly's are generally more liquid then weekly's

This is a bad week for it because we have the monthlys up this week. But look at next month's strikes, and look how much more open interest the 6/16s has at those strikes vs. the intermediate.

 

[Bekim]

what option?

Just all options that have weeklys and monthly. For example UNH strikes are 2 1/2 wide in the weekly's but 5 wide on the monthlys

 

[sle]

Just all options that have weeklys and monthly. For example UNH strikes are 2 1/2 wide in the weekly's but 5 wide on the monthlys

How is that bad?

 

[Bekim]

How is that bad?

Calendars

 

[sle]

Calendars

Nothing magical about doing identical strikes as long as you are root time vega neutral.

 

[Bekim]

risk reward is usually better on identical strikes on adjacent weeks