Think Or Swim and Options on Futures?

[crgarcia]

Options on futures have too low trading volume.
http://www.cme.com/trading/dta/del/...uctFoiType=OOF&ProductVenue=G&ProductType=idx

Thus TOS may not deliver, due to low demand.

Why not trade options on ETFs (QQQQ, SPY, DIA)?
You'll get burned with the huge spread, and you may not get out and sell easily, having to take your losses.

 

[moonmist]

Quote from ajna:

Per Sosnoff last week:
"Our first release for S&P options on futures is scheduled for Feb... Dow, grains, euro, metals and oil will follow shortly thereafter."

Today is February 1, 2008. Any upadte/rumor ?

 

[suedeuno]

No word on products yet. They're releasing some needed software updates tomorrow and web updates in a week.

Quote from moonmist:

Today is February 1, 2008. Any upadte/rumor ?

 

[Sashe]

Quote from crgarcia:

Options on futures have too low trading volume.
http://www.cme.com/trading/dta/del/...uctFoiType=OOF&ProductVenue=G&ProductType=idx

Thus TOS may not deliver, due to low demand.

Why not trade options on ETFs (QQQQ, SPY, DIA)?
You'll get burned with the huge spread, and you may not get out and sell easily, having to take your losses.

SPAN margin one of the reasons, also options on futures do have decent volumes and liq.

 

[WyckoffTrader]

I have been trading future options on the index mini, gold and oil for the last 6 months and the spreads are not that much different on these futures products and it is all electronic and now I can use SPAM for my risked based haircut and not have to trade in a JBO structure for this cross margin between cash options and futures.

Much easier to keep proper risk now and now I can trade managed accounts and not have the risk others in a JBO affecting my investors capital and can also manage retirement and IRA funds with the same program.

As these markets become more liquid and more global markets arrive than we have ability to trade 2-3 sesion a day and increae returns...Its like having a extra shift or running your factory 18 to 24 hours.

 

[blackjack007]

Quote from WyckoffTrader:

I have been trading future options on the index mini, gold and oil for the last 6 months and the spreads are not that much different on these futures products and it is all electronic and now I can use SPAM for my risked based haircut and not have to trade in a JBO structure for this cross margin between cash options and futures.

what broker are you with that allows cross margining between cash options and futures???

you cannot cross margin between cash/equity products and futures products. for instance, between es options and spx index options; or between es futures and spy options; etc.

...at least not with a retail broker.

 

[suedeuno]

I asked Sosnoff and he told me it's scheduled for the next release in mid-march.

Quote from suedeuno:

No word on products yet. They're releasing some needed software updates tomorrow and web updates in a week.

 

[bigbiscuit]

seriously fellas, if you're holding off trading futopts until TOS offer them, you're in for a long long wait...

 

[opt789]

A quote from Sosnoff this morning "options on futures are coming out right after backtesting. They are scheduled for late Feb/early March."

So it looks like at least a couple more months. Usually they keep pushing off deadlines as they approach, but they have been sticking with the Feb/March for awhile now so it would not surprise me if they have them before the end of March.

 

[suedeuno]

Yea, I agree on this one. I asked him later as in weeks or months and he gave me the mid-march release.

Quote from opt789:

A quote from Sosnoff this morning "options on futures are coming out right after backtesting. They are scheduled for late Feb/early March."

So it looks like at least a couple more months. Usually they keep pushing off deadlines as they approach, but they have been sticking with the Feb/March for awhile now so it would not surprise me if they have them before the end of March.