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At 4:24 PM -1000 11/27/01, Ron Augustine wrote:
>Slightly different story for Options. For short-term Options traders,
>OEX Options were the hottest thing since indoor plumbing a couple of
>years ago -- Today, the most active front-month Options contracts in
>QQQs trade at least 10 to 1 more volume than OEX contracts. Today
>(11/27/01), Dec Calls traded well over 50K contracts and OEX less
>than 5K -- No doubt, the action is in the QQQs for Options traders!
Look at the overall liquidity:
5K OEX contracts: Value = 100 * 590 * 5,000 = $300 Million
50K QQQ contracts: Value = 100 * 40 * 50,000 = $200 Million
So the total value is similar.
You would have to trade about 15 QQQ contracts for the same exposure
as 1 OEX contract so your commissions would probably be higher
trading QQQ options. (But they are probably easier to trade...)
Single Stock Futures are coming soon and this will be a big change. I
would expect many stock day-traders to switch to them...
Bob Fulks
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