NDX options fills and liquidity

G

gowthamn

I trade expirations which are at least 6 months away. Even though SPX does not have much volume that far away the fills are still good. I trade in 1:2, 1:3 or 1:2:3 ratios.

How is NDX 6 months away? Do we have to give up few more cents from mid than SPX to get filled?
 
Probably better off doing QQQ instead of the NDX if you want better fills/liquidity. But if you want to give the NDX market makers $ im sure they will let you.

curious what strategy are you using for 6 months away?

Are you just hedging your portfolio or something
 
Times said:
Probably better off doing QQQ instead of the NDX if you want better fills/liquidity. But if you want to give the NDX market makers $ im sure they will let you.

curious what strategy are you using for 6 months away?

Are you just hedging your portfolio or something
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QQQ is not part of 1256 contracts. So taxes are high. Also QQQ is cheap, so commissions will be high.

I do regular strategies but with far away expirations so that gamma is less and margin is less
 
Liquidity in the NDX is horrific. I stick to the SPX and RUT for that exact reason. It’s all retail traders giving money to the market makers in the form of slippage. I always wished it was more liquid but sadly it’s not worth it to me. Just look at the bid ask spreads and pull up the options times and sales to see where people are getting filled.
 
Liquidity in NQ isn't that bad during regular hours (I'll get filled at midpoint more often than not) but you likely have to cross the spread after hours.
 
Really interesting information. I've been wanting to start making money for a long time, but I can't find anything really interesting to do. Friends advised me to start calculating liquid net worth, and then look for where you can invest money. I was offered to invest money, but to be honest, I don't really understand it. Maybe you can help me with this? I want to invest money in forex or something to increase my money. I definitely don't want to play in lotteries and casinos because I think they are dishonest. I hope you can help me.
 
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