While we are in the subject of strangles. Do you think the strategy would apply to narrower base indices such as QQQ, SMH, PPH options? I would think the edge would be present there as well due to absence of natural sellers. Margin is probably less and the b/a spread is probably miniscule compared to the OEX spreads that are $1's wide!
short strangles
- Thread starter larryb
- Start date
Problem with OEX or QQQ is margin is too high. Use futures options instead.
Pretty much only broad based indices have futures options. Most narrow based do not even have futures to my knowledge.
The large SP contract (250) trades pit only during day hours and Globex at night. The mini's (50) trade electronic 23.5 hours a day during the week. Volume on the mini's is thin at best and non-existant at night, the large contract has better volume but the spreads on both are wide to very wide depending on the strike.
I see Oxeye trades FTSE and Dax futures options. Does anyone know if I can trade these through IB? I see the FTSE futures options available, but couldn't locate the contract specs on the Eurex or Liffe site. I found the index options, but not futures options.
Thanks
ktm
The large SP contract (250) trades pit only during day hours and Globex at night. The mini's (50) trade electronic 23.5 hours a day during the week. Volume on the mini's is thin at best and non-existant at night, the large contract has better volume but the spreads on both are wide to very wide depending on the strike.
I see Oxeye trades FTSE and Dax futures options. Does anyone know if I can trade these through IB? I see the FTSE futures options available, but couldn't locate the contract specs on the Eurex or Liffe site. I found the index options, but not futures options.
Thanks
ktm
see http://sites3.barchart.com/pl/vsn/optqte.htx?sym=SPZ3
1040 call prem around 12.80 and 1020 put prem around 16.00
