Will Single Stock Futures trade after-hours and pre-market like regular futures?
Will there be Options on Single Stock Futures also?
Would relatively large volumes of Single Stock Futures trading on a specific stock potentially affect the volumes and price movement of that stock's underlying shares?
What advantage might Options on Single Stock Futures have over purchasing Options on the Stock itself?
For instance, if a stock is trading at $25, and jumps to $28, then for $500 you could purchase a SSF contract at 5:1 margin, and make a profit of $300 when the stock reaches $28.
But you might be able to purchase a Call Option at strike price 25 for $250, and double your money when the stock reaches $28. Wouldn't an Option on the SSF at strike price 25 make about the same amount of profit as the Stock Option (except for much lower liquidity causing a wider bid/ask spread, reducing your profit levels)?
I can't quite figure how Options on SSFs might give any advantage over Stock options. Well, except that they wouldn't be subject to daytrading limits (as of now, at least), and also maybe the SSF Options would trade slightly extended hours (ES Futures options trade 8:40am-4:15pm, at IB anyhow)
Will there be Options on Single Stock Futures also?
Would relatively large volumes of Single Stock Futures trading on a specific stock potentially affect the volumes and price movement of that stock's underlying shares?
What advantage might Options on Single Stock Futures have over purchasing Options on the Stock itself?
For instance, if a stock is trading at $25, and jumps to $28, then for $500 you could purchase a SSF contract at 5:1 margin, and make a profit of $300 when the stock reaches $28.
But you might be able to purchase a Call Option at strike price 25 for $250, and double your money when the stock reaches $28. Wouldn't an Option on the SSF at strike price 25 make about the same amount of profit as the Stock Option (except for much lower liquidity causing a wider bid/ask spread, reducing your profit levels)?
I can't quite figure how Options on SSFs might give any advantage over Stock options. Well, except that they wouldn't be subject to daytrading limits (as of now, at least), and also maybe the SSF Options would trade slightly extended hours (ES Futures options trade 8:40am-4:15pm, at IB anyhow)
