Mini-SPX options

[qlai]

Is this old news? Why would anyone trade SPY options anymore? Will Mini-RUT be next?

http://www.cboe.com/products/stock-...tm_content=251921719_1x1_F92&utm_campaign=XSP

 

[SteveH]

Section 1256 tax treatment. "These contracts have lower 60/40 tax rates, meaning 60% (including day trades) are taxed at the lower long-term capital gains rate, and 40% are taxed at the short-term rate, which is the ordinary tax rate."

 

[notagain]

but not enough volume

 

[FSU]

Is this old news? Why would anyone trade SPY options anymore? Will Mini-RUT be next?

http://www.cboe.com/products/stock-...tm_content=251921719_1x1_F92&utm_campaign=XSP

Certainly some advantages, (60/40 tax and no early exercise) but the main problem as been the liquidity has not been as good as SPY, but that has been improving.
Also, there are extra exchange fees as it is single listed at the CBOE.

 

[qlai]

the liquidity has not been as good as SPY

I'm wandering why that is. You have MMs who should be willing to buy and sell all the time at reasonable prices. Otherwise, wouldn't someone be able to provide a tighter quote and still be able to arb it against SPX? I'm thinking of ETF MMs who always have liquidity available.