Why traders prefer regular index options over futures options?

[cesfx]

Higher notional value, cash settlement with no assignment risk are some advantages.

If you hold naked shorts then ES has lower margin requirements.

Index might have some tax advantage in the USA too...

 

[curiosity]

Still opening and closing 2 ES futures: 4 dollar. SPX is 2,40. Big difference..

Thanks but I found AMP futures charge (for micro) 0.62$ all inclusive per side so 1.24$ round trip and for ES you are right round trip is 3.80$ but for spx round trip at tastytrade is 1.65x2=3.30.

 

[curiosity]

Higher notional value, cash settlement with no assignment risk are some advantages.

If you hold naked shorts then ES has lower margin requirements.

Index might have some tax advantage in the USA too...

ES and MES also have same tax advantage as SPX or other regular index options

 

[dorietrading]

Thanks but I found AMP futures charge (for micro) 0.62$ all inclusive per side so 1.24$ round trip and for ES you are right round trip is 3.80$ but for spx round trip at tastytrade is 1.65x2=3.30.

I use IB, its cheaper for SPX but i always trade at least 2, min tx cost is 1 dollar there..

 

[Adam777]

Thanks but I found AMP futures charge (for micro) 0.62$ all inclusive per side so 1.24$ round trip and for ES you are right round trip is 3.80$ but for spx round trip at tastytrade is 1.65x2=3.30.

I believe you can’t do options spreads with AMP

 

[mervyn]

index options are considered non-equity options, some 40/60 as futures options.

 

[Windlesham1]

Welcome to the UK where we have one index that has options

 

[jamesbp]

Welcome to the UK where we have one index that has options

IMO, trading US Markets can be an "illusion of choice"

FTSE Options make trading relatively simple (but not easy)

- Large nominal value £80k
- Cash Settled
- Monthly Expiries Only (excl Flex)
- Phone Brokers available

 

[Windlesham1]

One phone broker to my knowledge and yes that's how I've been doing it (badly) since the last century. I agree it's fine for trading as it's European style liquid, sometimes and has yet to do a 6% rise in one day, as the S&P did just as I had opened a TT account. Cheers.

 

[jamesbp]

One phone broker to my knowledge and yes that's how I've been doing it (badly) since the last century. I agree it's fine for trading as it's European style liquid, sometimes and has yet to do a 6% rise in one day, as the S&P did just as I had opened a TT account. Cheers.

FTSE has had at least 2 daily rises of 8-9% whilst I have been trading, 2008 & 2020