Weekly SPX options and MiniSPX

I may actual trade these. They sound interesting. SPX options do not have span margining. Someone mentioned they may adopt this in the future?? That would be alot better.
 
I never traded European style options before. How one can lock the intraweek Gamma profit or adjust long Delta position in this case? If SPX goes up , should I buy next week put? Should I short stock? Or maybe I should use a stock as a leg when I take initial position?
 
Quote from IV_Trader:

I never traded European style options before. How one can lock the intraweek Gamma profit or adjust long Delta position in this case? If SPX goes up , should I buy next week put? Should I short stock? Or maybe I should use a stock as a leg when I take initial position?
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Unless you exercised early you American-style options to lock in gains, I don't see how it would be different with European-style options!? :confused:

True, with index options you don't have the exact underlying, but this problem has nothing to do with options being European-style.
 
Quote from MTE:

Unless you exercised early you American-style options to lock in gains, I don't see how it would be different with European-style options!? :confused:

True, with index options you don't have the exact underlying, but this problem has nothing to do with options being European-style.
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Does European-style exercise (ESE) mean that the options may only be exercised after the close of the last trading day?

How will ESE change option pricing, and trading?
 
Quote from MTE:

Unless you exercised early you American-style options to lock in gains, I don't see how it would be different with European-style options!? :confused:

True, with index options you don't have the exact underlying, but this problem has nothing to do with options being European-style.
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you are right , I just got a bit confused with European style... Wow , what a great news , maybe one day they will do it on the equities level. Thanks
 
Isn't these new mini-SPX thingies essentially the same thing to SPY, as DJX options were to DIA??


As for the weeklies, imagine the spread plays on that! LOL
 
Quote from Arb Under Par:

Very interesting. Besides straight directional gamma trades, there should be some interesting uses with these. Anyone thinking of possible strategies yet? Assuming there's some volume ;-)
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If you having success with "Buy Leaps , sell current month" strategy , you can do it 52 times a year instead of 12 now, lol
 
Quote from MTE:

The Greeks won't be affected, the weeklys will have the same Greeks that "normal" options have in the expiration week. It will be just like expiration week is taking place every week.
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Huh, why in the world would you play them from the long side then? What I mean is Theta will be rapid if the option is OTM. Even if your playing deep ITM it sounds like a suckers game with 5 days in existence. I am sure many of you are more option savvy than me...thoughts?
 
Gamma is the opposite of theta. Lot's of bang for your buck. If you're right and it moves in your direction the rise will more than make up for your theta decay



Quote from SWScapital:

Huh, why in the world would you play them from the long side then? What I mean is Theta will be rapid if the option is OTM. Even if your playing deep ITM it sounds like a suckers game with 5 days in existence. I am sure many of you are more option savvy than me...thoughts?
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