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Looking at my notes, every place where I have OEX options
below, I ment to say SPX options.
== Rob ==
-----Original Message-----
From: RobertBu <Robertbu@xxxxxxxxxxxxx>
To: Omega-list@xxxxxxxxxx <Omega-list@xxxxxxxxxx>
Date: Saturday, June 20, 1998 10:40 PM
Subject: S&P Options on Futures vs OEX options
>I trade S&P futures and options on S&P futures. Another trader and
>I were having an email discussion about the merits of various instruments,
>and, having never traded OEX options, I became puzzled contrasting the
>S&P options on futures with OEX options. At first blush, it seemed that
>S&P options on futures were superior, but with 20 million OEX contracts
>traded last year, there must be some strong positives.
>
>Q1: What is the cost of building a comparable positions in each? Given
>the ratio, at first blush it seemed OEX options were more expensive, but
>an email this week hinted that the fees were substantially less for OEX
>options. True?
>
>Q2: With no underlying, how does the market maker for OEX options
>stay neutral?
>
>Q3: Is there arbitrage going on between the S&P options and the OEX
>options or do the two get out of sync?
>
>Q4: Given that futures tend to lead the cash, are there opportunities with
>OEX options or is the market maker good at pricing?
>
>Q5: Are there any significant differences between the two instruments that
>I may be missing?
>
>== Rob ==
>
>
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