SPX options - what next?

O

osho67

I mainly sell SPX options- vertical spreads or iron condors. These options are good . I have also tried XEO, RUT and NDX. But mid price fills are difficult and when you want to close a position to move a bad position , things are difficult.

I am looking for something else as well apart from SPX. I have tried ETFs like DIA, SPY, IWM and QQQ. They are good but premium earned for the margin requirement as compared to SPX is less.

So the question is what else apart from SPX? Is another route to go to some stocks? Stocks are volatile during earnings season, But if that is another route , I will give it a try,

Please comment and suggest any alternatives . Thanks so much,
 
Osho I'll second the ES...when I first tried them (06, 07) they were not as liquid and more difficult to fill. The way risk is measured is different as well. The past two years the action is all in the ES. I was still trading SPX in the IRA so I had a good comparison. It has been much much easier getting filled and making bank in the ES. I'm done with SPX.

oh and as far as being American...not an issue. I've never been exercised early even when I've held way in the money options close to expiration. Expiration is also simpler and your exercised into the ES cash so you can turn around and buy or sell it as needed. The big condition is just trade it smaller. If you have been doing 10 IC's in the SPX ..do just 1 ES.
 
Quote from RichardRimes:

Osho I'll second the ES...when I first tried them (06, 07) they were not as liquid and more difficult to fill. The way risk is measured is different as well. The past two years the action is all in the ES. I was still trading SPX in the IRA so I had a good comparison. It has been much much easier getting filled and making bank in the ES. I'm done with SPX.

oh and as far as being American...not an issue. I've never been exercised early even when I've held way in the money options close to expiration. Expiration is also simpler and your exercised into the ES cash so you can turn around and buy or sell it as needed. The big condition is just trade it smaller. If you have been doing 10 IC's in the SPX ..do just 1 ES.
More...
Its not just exercise, it complicates the model considerably. But isn't there an XEO or something like that which is almost identical and is European? It has been a while...
 
Quote from RichardRimes:

Osho I'll second the ES...when I first tried them (06, 07) they were not as liquid and more difficult to fill. The way risk is measured is different as well. The past two years the action is all in the ES. I was still trading SPX in the IRA so I had a good comparison. It has been much much easier getting filled and making bank in the ES. I'm done with SPX.

oh and as far as being American...not an issue. I've never been exercised early even when I've held way in the money options close to expiration. Expiration is also simpler and your exercised into the ES cash so you can turn around and buy or sell it as needed. The big condition is just trade it smaller. If you have been doing 10 IC's in the SPX ..do just 1 ES.
More...

It's pointless to early exercise a option on future because there is no dividend cashflow to be captured.
 
You must log in or register to reply here.
Back
Top