OEX Options?

electron · Dec 13, 2003

Is anyone here still trading oex options? If so, how good is their liquidity? How easy it it is to get fills at limit prices trading 10 contracts at a time?

And what would you say about the performance of oexstreet.com? Check out their website. Seems very good, but since they enter and exit at limit prices I am wondering how hypothetical as opposed to realistic their results might be.

TIA for any input.

Hello_Dollars · Dec 13, 2003

Liquidity's fine on the OEX for 10-lot spreads. You can go substantially higher before encountering fill problems. The XEO, however, is another story entirely. Liquidity is anemic and, based on recent experience, I strongly suspect that the rigor mortis has beset the specialist, may he rest in peace.

electron · Dec 13, 2003

Quote from Hello_Dollars:

Liquidity's fine on the OEX for 10-lot spreads. You can go substantially higher before encountering fill problems. The XEO, however, is another story entirely. Liquidity is anemic and, based on recent experience, I strongly suspect that the rigor mortis has beset the specialist, may he rest in peace.

Thanks.

Are you saying that you usually get filled at your limit price?

And what is XEO?

Hello_Dollars · Dec 13, 2003

Yes, but of course my limit and yours may be quite a way's off. Still, if you're not too greedy and go for, say, a dime below the mid-point, you should get filled if you're not doing big size.

The XEO is the European-style equivalent of the OEX. Since I use index options primarily for iron condors, I like the comfort of not having to worry about early assignment (though, in practice, I never really let that become an issue). Hence, the SPX, where liquidity is not an issue, has become my contract of choice.

electron · Dec 13, 2003

Quote from Hello_Dollars:

Yes, but of course my limit and yours may be quite a way's off. Still, if you're not too greedy and go for, say, a dime below the mid-point, you should get filled if you're not doing big size.

OK, thanks again. Let me put it yet another way that can help me: if my limit price gets actually printed and it's not very far away from a midpoint (say at 7.3 with the spread 6.8/7.5) and I trade 10 contracts, would you say that I am rather likely to get filled?

BlueHorseshoe · Dec 13, 2003

Quote from electron:

OK, thanks again. Let me put it yet another way that can help me: if my limit price gets actually printed and it's not very far away from a midpoint (say at 7.3 with the spread 6.8/7.5) and I trade 10 contracts, would you say that I am rather likely to get filled?

If your price gets printed after you've place a limit price, in my experience you are almost certainly to get filled at that price. In fact, I cannot recall not getting filled in such a scenario. Perhaps the floor will trade first, but someone will take you out nonetheless.

Hello_Dollars · Dec 13, 2003

Quote from BlueHorseshoe:

If your price gets printed after you've place a limit price, in my experience you are almost certainly to get filled at that price. In fact, I cannot recall not getting filled in such a scenario. Perhaps the floor will trade first, but someone will take you out nonetheless.

Yea, that's been my experience as well. If it hasn't printed, but you're .05-.10 off the mid-point, you should get filled.

electron · Dec 13, 2003

Thanks for your replies, guys.

My experience with trading eminis would not necessarily corraborate your opinions, but since we are talking about a different instrument that I have little experience with, I am not questioning them.