Why are prices of ESTX50 ATM options so different ?

[SumZero]

Stox50 (ESTX50) is right now at 2861.

Looking at ATM options for Jun 2018, we see (bid-ask):
Call 2850 -> 262-267.5
Put 2850 -> 514.2-522.8

Why such a difference ? Knowing that interest rates are (still) low, is that all on dividends ?

 

[rmorse]

Is 2861 the cash price or the futures price for that month?

 

[OddTrader]

Check the deltas. One for 0.42, another -0.58. Both Not ATM.

 

[SumZero]

Is 2861 the cash price or the futures price for that month?

2861 is the stox50 value at the time I wrote the post so it's the cash price.

 

[SumZero]

Check the deltas. One for 0.42, another -0.58. Both Not ATM.

That also confuses me because these options are index options and not futures options.
http://www.eurexchange.com/exchange-en/products/idx/stx/blc/EURO-STOXX-50--Index-Options/19066

Because of that I don't see why they are not ATM

 

[rmorse]

Options are priced vs the future not the cash. That might account for some of the difference if the future is well below the cash. I'm more familar with SPX. It is not priced vs the SPX cash but where you can hedge which is the ES or SP future.

 

[SumZero]

These options are based on the settlement of the cash. I guess it's equivalent to the SPX options as you say.

This is the full picture right now for index, futures and options (the closest possible to ATM). It's a huge difference, even looking at futures contract.

 

[newwurldmn]

In eurostoxx a lot of divs are paid in the first 6 months. I think something like 80 of the 100 points with most of that from March to jun

 

[botpro]

I think they are pricing it wrong. If it pays dividend then the Puts should be much cheaper than the Calls,
but they have it exactly the other way around... really funny...

 

[newwurldmn]

I think they are pricing it wrong. If it pays dividend then the Puts should be much cheaper than the Calls,
but they have it exactly the other way around... really funny...

Must you pollute every thread with your ignorance?