Hello Everyone: Does anyone have any experience / knowledge regarding NDX options? Specifically, are they similar to SPX options where you can often get a fill around midpoint, or are you going to be stuck (especially when closing a position) selling at or close to the bid and buying at or close to the ask? Are there certain anomalies we need to aware of? Thanks!
NDX Options
- Thread starter arizonadreamer
- Start date
They are but have much lower volume and much lower supply thus much harder to trade since they are much less liquid and also have much higher actual volatility for the same level of IV than SPX. They are pretty much filled at midpoint but only if you trade by 4:00 PM and for certain level of strikes. The ATH market for NDX options is lot less liquid than the one for SPX options. Overall you will get slightly higher premiums on NDX than SPX but imo the risk is not worth it since if you get assigned, you lose lot more than what you earn in the premiums and since they are lot more volatile, the chances of you get assigned is much higher that is way undercompensated by the premiums you earn.
I tried them, earned some $$ but got burned, am now staying away from them. That's my personal experience with them.
He's an expert but all he does is lose money in options.
Yes, ofc. It’s amazing he does so well w/o knowing they are Euro-style, cash settled and don’t trade after 4:15. He should write a book.
It's all that infinite gamma on his netflix earnings trades!