I did a quick check on them and the info I got says they are designed for hedging needs of institutions. Are they viable as active trading instruments or strictly for the big boys hedging?
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quarterly options
- Thread starter maninjapan
- Start date
is there any specific reason one would trade them over the regular monthlies?
whats a quarterly option? All I see are the regular mont to month options (ie jan,feb,etc..)
Quote from maninjapan:
is there any specific reason one would trade them over the regular monthlies?
The quarterlies on the SPX have a European style expiration. You don't have to be concerned about the occasional madness of opening settlement.
Also, as others have observed, they can be illiquid at times. It's best to establish your initial position at a good price because, when closing your position, be prepared to sell at the bid or buy at the ask instead of getting the midpoint. This is not always the case, but it's practical to factor in the worst case scenario.
Good luck.
AZD
Quote from arizonadreamer:
The quarterlies on the SPX have a European style expiration. You don't have to be concerned about the occasional madness of opening settlement...
I'm not sure what you meant here since all SPX options are European style not just quarterlies and all of them go through the same expiration process (the settlement value is calculated on the opening print).
Quote from MTE:
I'm not sure what you meant here since all SPX options are European style not just quarterlies and all of them go through the same expiration process (the settlement value is calculated on the opening print).
Oooops. I meant to say that the quarterlies are NOT European style, but American style expiration.
Not all SPX options are European. The quarterlies are NOT calculated on the open, but the end of day price.
Sorry for any confusion.
AZD