Why do you trade options?

[MTE]

Quote from jeffalvinson:

...I can't imagine anyone holding futures contracts for 2 or 3 days.


Jeff

Why not, what's holding period has to do with it?

 

[roncer]

MTE,

Could you comment a bit more on early exercise? I am fairly new to the options world. Is the expiration date or time any different with OEX and XEO?

Thanks........Ron

 

[ellevers]

I think the OEX would be better to trade if they multi-listed it.

 

[just21]

Quote from dave_s:

Can someone point me to a website that shows the changes in margin treatment that will occur in April 2007?

Thanks in Advance

Dave

http://elitetrader.com/vb/showthread.php?s=&postid=1323324#post1323324

 

[MajorUrsa]

Quote from MTE:

Why not, what's holding period has to do with it?

I think he means that the long options have a limited risk, unlike the futures. For overnight position this could be a problem for some people.
It is a true advantage of long options, so that is the reason he trades them, rather than the index being the underlyer.

I myself prefer to go to sleep with delta 0 or <0. (But I do have gamma<0 )

Ursa..

 

[luh3417]

Quote from daveb351:
Broad Based Index Options per CBOE

DJX - Dow Jones Industrial Average
DXL - Jumbo-DJX Index Options
OEX® - S&P 100® Index Options
OEX® - S&P 100® Index LEAPS
XEO® - European-style S&P 100® Index Options
VIX - CBOE Volatility Index® Options
SPX - S&P 500® Index Options
XSP - Mini-SPX Index Options
SPL - S&P Long-Dated Options
SML - S&P® SmallCap 600 Index
NDX - Nasdaq-100® Index Options
MNX® - CBOE Mini-NDX Index Options
MML - CBOE Mini-NDX Long-Dated
GTC - GSTI™ Composite Index Options
RUI - Russell 1000® Index
RLG - Russell 1000® Growth Index
RLV - Russell 1000® Value Index
RUT - Russell 2000® Index
RMN - Mini-Russell 2000® Index

XEO is the European expiration version of OEX. SPX has XSP, but XSP is not European expiration, its mini. Is XEO the only European style broad based index options?

 

[MTE]

Quote from luh3417:

XEO is the European expiration version of OEX. SPX has XSP, but XSP is not European expiration, its mini. Is XEO the only European style broad based index options?

Most index options are European-style, including SPX, XSP, RUT, NDX, MNX, DJX and etc. OEX is more of an exception being American-style.