There has been a lot of hype about the new Dow and Mini S&P Futures and Options contracts that have hit the exchanges over the last few weeks. Questions have been pouring into the office about these products and we feel it is necessary to explain them in detail:
** The S&P Mini contract was introduced on September 9, 1997 as an alternative to trading the big S&P contact. This is an electronic traded product using computers. Also referred to as the E Mini, it is 1/10 the size of the S&P — $50 per full point. The contract trades in 1/4 point increments and the margin is about $2,200. You need a lot of movement to make any money trading E-Mini. Commissions are a factor as well, as most brokerage firms charge the same commission as they do for any future or option trade. As far as order types, the E Mini trades like Globex products, which means most firms do not take stops. However, if they do take stops and its not filled after 1 full point, then it becomes a limit. This leaves a bad taste in my mouth knowing that if I call in a sell stop at 950, it could be filled below 949. Options are traded on this product, but it is hard to get a bid/offer from a broker on any strikes.
** The Dow contract was introduced the first week of Oc-tober. It is an open outcry market unlike the E Mini. This future moves at $10 per point, meaning if the Dow climbed 50 points in one day, a long future would have gained $500. The commissions should be the same as any futures contract at your firm. This market also has options, which are easier to get than the E Mini contract. Margin on this futures contract is about $3,300.
I think if I was considering using these products as an options trader, I would lean toward the Dow contracts for two reasons. First, I like the open outcry system of getting bid/offers to have an idea of what I am going to pay for a trade. Secondly, if the commissions are the same, it looks as if I get about twice the reward potential using the Dow product than the E Mini — when looking at the movement of both.
I must mention OPTIONETICS does not trade any new products until they have been on the market at least 60 to 90 days. With the S&P splitting at the end of October, there could be a shift away from these new products and back to the old reliable one. Only time will tell!
Hiç yorum yok:
Yorum Gönder