Index buying options penny put


They are the product of the Penny Pilot Program that was initiated by the CBOE in November, 200. The primary benefit is that the round trip cost of the trade can be pared down significantly (instead of rounded up, as with other spreads on the bid and ask). These options are associated with the most heavily traded equity issues.

The high trading volume on the stocks positively correlates with the high Open Interest of the related option chain. Known as liquidity, substantial Open Interest has a higher probability of fetching the ophions quoted. Slippage occurs when the trader does not get an execution at the expected price. Index Long Put ConstructionBuy 1 ATM Index PutThe options trader employing the index long put strategy believes that the underlying index level will fall significantly below the put strike price within a certain period of time.




Buying index put options penny

Buying index put options penny