Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Advertisement

Crossing boundaries with E-mini index options

By Paul D. Cretien

August 1, 2012 • Reprints

This means that as time to expiration grows shorter, the mini Dow September calls will expire with a value of either zero or intrinsic value (futures price less strike price) well before a similar loss of time-premium value for the higher-priced calls for the mini Russell 2000 and Nasdaq 100. Only changes in portfolio composition or market perception of the indexes themselves could change the progression of call prices as the four “waves” move toward the “shore” represented by the horizontal axis and intrinsic value.

At the heart of this difference in market perception of relative volatilities among the four mini call options is the actual performance of the index futures. “Cumulative percent changes” (below) shows the price changes for the September futures from April 3 to June 5, 2012. During this period of overall declining stock prices, the Russell and Nasdaq September minis raced each other to the bottom, followed by the less-volatile Dow and S&P 500 minis. From Jan. 4 to March 30, the indexes showed approximately the same pattern with positive percentages: Dow, +6.94%; S&P 500, +10.68%; Russell 2000, +11.39%; and the Nasdaq 100, +18.16%. 

<<< previous
Page 2 of 5
>>next >

About the Author

Paul Cretien is an investment analyst and financial case writer. His e-mail is PaulDCretien@aol.com.

Related Articles
Trading Vertical Option Spreads
Options Strategies for trading soybeans, record yield or not
Trump bump or dump?
Election play in gold options
S&P 500: futures vs. options
Previous
Pressure rises on London regulators
Next
Collaring multiple-asset ETFs to manage tail risk
Related Terms
financials 2975equities 1689S&P 1534CME Group 851options 445Indexes 68Paul Cretien 52Equity indexes 23mini options 2Barchart.com 2

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images