CME to add Monday Weekly Futures Options for Emini S&P 500
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After searching for that answer myself, I concluded that although e mini s&p 500 weekly options do appear to be very similar there is a subtle difference between the two. This article does not advocate trading one over the other but it aims to explain the contrast between the two. Let us first show the similarities. These options are European style, and they also have weeklies.
There is very little difference in premiums because the option pricing formula is still the same. Not only is the premium similar but also their expiration dates are within a couple of days of each other and they both have weekly options.
Now let us move onto the differences. The main difference between the two are the expiration styles and trading hours. Click that and it will bring you to the Quote page. Right next to Quotes is Contract Specifications.
There are two tabs underneath Contract Specifications: They use it and abuse it because Figure 2 shows the open interest on the weekly call and put options is there, and it is not the retail traders that have created the liquidity.
Read more, watch less television. The daily SPY chart below e mini s&p 500 weekly options several markings on it. The diagonal trendline from the October low connected with the November 25th, and the December 19th lows, represents the bigger trend which is intact.
The green horizontal line The yellow rectangle marks the closing price of December 19th and opening price of December 20th as an unfilled e mini s&p 500 weekly options. Hint — not every gap has to get filled. If we place Fibs on the above chart then we get some interesting coincidences. The Fibs are attached to the low of December 20th and the highest point e mini s&p 500 weekly options February 29th. It is interesting to observe that the pull back of March 6th was to exactly the Also observe how the 50 day Simple Moving Average is not violated to the downside.
In fact it nicely lines up with the big diagonal trend line. The fact that the Simple Moving Average is not broken could be construed as a sign of strength. Keep an eye on it because that area of the overlaid 50 SMA and the trendline might be a good point for a long entry. Keep that in mind when choosing between the two. Disclaimer This newsletter is written for educational purposes only. E mini s&p 500 weekly options no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever.
Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader.
The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results. Reprints allowed for private reading only, for all else, please obtain permission.