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OEX options are American style..they trade more volume than SPX...are mostly
a product used by individual investors..they have lower open interest than
SPX. They are also PM settlement vs AM for SPX.
SPX options are european.....the trade less volume, but the typical trade
size is about 20x the OEX. The b/a reflects their institutional following
and often a better market exists than what is on the screen. The screen
represents what is usually a 500 to 1,000 market vs 10 for the OEX. The are
easier to trade in fast markets because of direct correlation to the futures
contract. Accordingly their volatility is less volatile than that of the
OEX. They are AM settlement.
Marcelo Martinez wrote:
> Can anyone tell me what the difference between OEX and SPX options in
> terms of the bid/ask spread and also volume. My broker tells me that the
> OEX has narrower spreads because of the higher volume , but if you look
> at the open interest and daily volume it appears that the SPX options
> are higher volume. Which is correct?
>
> Thanks
>
> Marcelo
>
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