Deserted weekly stockoptions
The traded volume in the options with maturities of one week in the single stocks isn’t very exciting. For example, the volume in ING’s weekly options yesterday was 875 contracts, which is nothing compared to the 50.000 contracts in the regular ING options. For the weekly options on Royal Dutch the situation is even more bizarre : not a single contract traded yesterday. Nothing. Zero. Tuesday was only marginally better with a volume of 21 contracts.
Anyway, this won’t stop Euronext in introducing even more weekly options on single stocks. The lucky winners this time are Aegon, Philips and KPN. Enter the new abbreviations AG, PH and KP. These weekly options will start September 3rd.While it’s hard to imagine a trading volume thinner than the weekly Royal Dutch options, the volume will be not worth mentioning. I’m afraid in a few months time we will be witnessing daily options in Mediq, Wavin and Draka. Introducing new classes is free of charge for Euronext.
Retail investors should stay far away from this kind of low-priced weekly stock options, as the fees will eat all their profits. It’s not the retailbrokers like Binck and Lynx who are to blame for the high transaction costs : it’s Euronext who is reluctant to cut their fee levels for investors. As long as the the transaction costs are out of proportions, the weekly single stock options will remain dead. Euronext runs a smooth operation with one department creating new option classes, and other departments make sure there won’t be any trading at all. Some people within Euronext must hate each other.
Market makers should boycot those weekly stockoptions. Sign on for PMM if you like, but just don’t quote for a few days. Maybe this will wake up Euronext.
It’s not the retailbrokers like Binck and Lynx who are to blame for the high transaction costs : it’s Euronext who is reluctant to cut their fee levels for investors.
HEAR HEAR
anybody trading Philips monthly options?what’s going on on Mar11…is there a dividend priced in the market??
any clue??
great place to ask
Ask to borrower optiver’s hammer tool……
Is a very gooda sugestie
Why you answer with that superior tone (the guy that writes “great place to ask”)?? Do you think it’s only me and you in the whole world that trade PHI?? Do you think that it’s only about these few dutch MM companies?? And no one else in the world??Why bother than?? What makes you so cool mate?? I bet that you are not so cool as you think…
And anyway…I would like this blog to be of some use, to talk more about options, to make it a bit more professional..it’s useless if we always have to chat bullshit about other people’s millions or luxory cars or someone getting fired…
Also a great place to write off your frustrations apparently.
must be that time of the month
or the time of the day
[…] the trading fees charged to retail investors it won’t come as a surprise the weekly stock options aren’t popular. The weekly’s in Aegon are still okay with Optiver, IMC and Scrocca […]
Euronext is a big big mess as exchange