/biz/ - Business & Finance

>>54860610
Deny the bobo
Deny the mumu
Embrace crab
Embrace entropy

>>54454737
>Redpill me on futures options. I need some after-hours action.
Alright so, future options' main claim to fame is 3 fold.
1. No PDT
2. Mostly cash-euro settled but can be American depending on the expiration. Great for options selling if you use it right.
3. SPAN margin
Combined you have a highly capital-efficient tool to spam similar options strategies for in theory lower risk if you do spreads. If you just want to sell naked you can do that too affordably as well.

That said some notes to consider,
Future options are calculated differently than normal options thus the nominal value may not line up with what your used to. Secondly, there are some options strategies and tools you cannot use like rolling for example. The regulatory body, CME, doesn't like it for whatever reason.

Nevertheless if you can trade future options you also get good tax benefits and can trade commodities like you can with normal stock options. For example I spam credit spreads on NatGas or Oil from time to time or do so on other commodities if I see a good setup.