How Do Options On Micro E-mini Futures Work?

#optionsonfutures #CME #futurestrading

So the CME says 48K options contracts on Emini Micros have traded since the launch a few weeks ago. I must have missed all that volume and open interest but it was about time I placed a trade.

Learn more about Micro E-Mini futures options

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[jiti]

Emicro Option on Futures settle in to a position in the Emicro futures, , correct? if so for say If I sell( naked) a mid May ATM PUT which is based on June contract and If lets say the June contract on expiry day of the May PUT is trading 10 points below my sold strike and I get assigned what actually happens? Does my account shows a PUT futures position?

[CFlo]

Will be testing out MES options soon and have some questions. I use IBKR regularly and have 22k in the account. 1. Will I be able to buy and sell options on mini futures as many times as I want with no PDT restrictions?
2. When I purchase an option on mini futures do I still have to worry about time decay (theta) burn?
3. Am I able to buy and sell options on mini futures 23 hours a day as well?

[KristoferKrause]

Let's not forget that futures (and futures options) are taxed at 60/40 long term/short term. And there is no pattern day trading. Also, the margin requirements are better.

[spenceranderson]

Is it more profitable to trade options on futures like /ES or regular options on something like SPY? I am thinking in terms of buying an ITM call option with around a year to expiration. I’m trying to figure out which would be more profitable for a LEAP option. Thanks for the help. I’ll be watching all of these videos. Such great and informative content!

[tube]

Hi Roderick, I have a few questions, first: where do I find the buying power for one given position in Interactive brokers platform (I mean the margin allocated for the position)? second: I don't understand if I get asigned on MES - do I have to buy/sell MES for example strike price 3700 x 1 (as one contract) so need to have at least 3700 usd ? and what is the buying power (margin allocated for the position) when buying naked put on MES (for example with delta 0.20)?

[thenightmaretheif]

Are /MES options subject the wash sale rule?

[liquidityblocks]

Thanks for the video, Rod. Quick question. Does PDT rule apply on day trading MES contracts?

[golumolu]

Do a video on MNQ future hedging with option

[robdcbtcinvestanduse]

Thanks for reminding of not leaving options “naked"

[mineshshah]

I can not open the link it says invalid link. Invalid URL
The requested URL "[no URL]", is invalid.this message coming, is any other way to register with CME for active trader?

[golumolu]

How much money do i need to sell micro e mini Nasdaq 100 week 4 option??

[flipkoofx]

Great video! Do options on futures require margins? Or as long as you cover the premium there’s no additional margin requirements? Thanks!

[golumolu]

How much money u need to make that debit spread $75??

[greglegakis]

Rod, I might be missing something but did you say you're risking $75 to potentially make $125? That doesn't seem very lucrative considering you can trade 1 single e-mini contract and in a matter of a few seconds or minutes have it move one point and make the same amount.

What am I missing?

Thanks, Greg

P. S. I only trade S&P Futures and have never traded options of any kind but am somewhat familiar with options trading.

[aryana]

Is s&p 500 a future ? that means I can day trade it as many times as I want if I have less than 25000 ?

[Jamaicandoctor]

Thanks for the video. I have a 25k account. Own 6 contracts with $7200 margin power. Is there anything wrong with selling 10-15 naked /mes contracts using total around 40-50% bpr. And then chasing it daily to keep delta at 0 theta at 120-140 and losing around $20 in slippage thru commissions and fees? Is 6 contracts too big? Where is the risk here?

[cartmanfooku]

I can’t put a atop loss order in emini spread ?

[ygtcbee]

I fear early assignment on those Put spreads especially on thinner markets with wider spreads to exit.