I predict they will have solid volume very quickly. Since the terms are the same as the mid month contract, there's no educational process to endure. Much of the existing volume is from CTA/CPO firms and other institutions who are hedging. Since everyone reports monthly, it makes sense to use a product that coincides with the reporting schedule.
S&P500 Options expiring on last trading day of the month
- Thread starter ChrisM
- Start date
It's been a slow progression. Only a few quotes the first hour, then more but $7 - $8 spreads. Now we're down to $4 spreads but only 10 to a side. I expect the spreads to tighten as other MMs come in.
Hopefully the CME has other MMs lined up to participate. I would think everyone running the regular expiry would participate in the EOM.
I think the CME has done a poor job of getting the word out about the product. There is no press release that I have found and nothing on the front page of the website as of this morning. I only knew about it from the vendor doc annoucing specs and symbol testing, which is buried on the website.
Despite the slow start, I expect this to get better every day.
Hopefully the CME has other MMs lined up to participate. I would think everyone running the regular expiry would participate in the EOM.
I think the CME has done a poor job of getting the word out about the product. There is no press release that I have found and nothing on the front page of the website as of this morning. I only knew about it from the vendor doc annoucing specs and symbol testing, which is buried on the website.
Despite the slow start, I expect this to get better every day.
Right. I`ve been actually quite surprised that such product has such poor advertising.
Good news is however, that selling OTMs gives you about same results as for ES, so the catch is about longs but for buying we can still use old ES, can we ?
Shorts may stay as they are European, and the rest might be hedged using old ES and futures.
Good news is however, that selling OTMs gives you about same results as for ES, so the catch is about longs but for buying we can still use old ES, can we ?
Shorts may stay as they are European, and the rest might be hedged using old ES and futures.
