Basic option question.

This is a discussion on Basic option question. within the First Steps forums, part of the Reception category; I've also got a basic question. I'm new to option trading and I was looking at a few on the ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Dec 18, 2007, 3:43am   #1
 
5 Posts
Joined Dec 2007
Basic option question.

I've also got a basic question. I'm new to option trading and I was looking at a few on the yahoo finance site. For the options of the QQQQ shares, for each strike there are two different options on market. Is one an American and the other an European?
beckhamm_7 is offline   Reply With Quote
Old Dec 18, 2007, 2:49pm   #2
Joined Dec 2004
I belive there are only American style options for the Qs. Are you confusing the difference between puts and calls?
__________________
John Forman
Author - Trading FAQs, The Essentials of Trading
Rhody Trader is offline Training literature vendor (e.g courses / spreadbetting guides / eBooks)   Reply With Quote
Old Dec 18, 2007, 3:18pm   #3
 
Profitaker's Avatar
Joined Jan 2005
Quote:
Originally Posted by beckhamm_7 View Post
I've also got a basic question. I'm new to option trading and I was looking at a few on the yahoo finance site. For the options of the QQQQ shares, for each strike there are two different options on market. Is one an American and the other an European?
All index and ETF options are normally European style (cannot be exercised until expiry). It's possible you could be looking at quotes from different exchanges, but not certain as I don't trade the US market(s).

If you could post up a link we'll have a gander.
__________________
Good judgment comes from experience. Experience comes from bad judgment.
Profitaker is offline   Reply With Quote
Old Dec 19, 2007, 12:56am   #4
 
5 Posts
Joined Dec 2007
beckhamm_7 started this thread Thanks guys for the quick responses. Here's the link, QQQQ: Options for POWERSHARES QQQ TR 1 - Yahoo! Finance.
beckhamm_7 is offline   Reply With Quote
Old Dec 19, 2007, 2:02am   #5
Joined Dec 2004
I see only two different types of options - calls and puts. That's it.
__________________
John Forman
Author - Trading FAQs, The Essentials of Trading
Rhody Trader is offline Training literature vendor (e.g courses / spreadbetting guides / eBooks)   Reply With Quote
Old Dec 19, 2007, 9:05am   #6
 
Profitaker's Avatar
Joined Jan 2005
Quote:
Originally Posted by Rhody Trader View Post

I see only two different types of options - calls and puts. That's it.
Yes, me too.
__________________
Good judgment comes from experience. Experience comes from bad judgment.
Profitaker is offline   Reply With Quote
Old Dec 21, 2007, 5:55am   #7
 
5 Posts
Joined Dec 2007
beckhamm_7 started this thread Sorry guys, I guess I was not detailed. For the call options of QQQQ, for each of the strike prices between $30 and $60, there exists two types of options. I see now that their spreads are equal for the most part, but what are these two options and why do they exist? This is also the case with the put options.

ie. There's a call option with a strike price of $36 with the symbol QQQLJ.X There's another call option with a strike price of $36 with the symbol UQQLJ.X. Their spreads are equal, their last sold price differs by a bit, their volumes differ but their open interest are relatively close.
beckhamm_7 is offline   Reply With Quote
Old Dec 21, 2007, 10:30am   #8
Joined Dec 2002
The only difference I can see is the expiry dates,
QQQLJ expires on the 21/12/2007
UQQLJ expires on the 27/12/2007
PualoP is offline   Reply With Quote
Thanks! The following members like this post: Depth Trade
Old Dec 21, 2007, 10:46am   #9
 
Profitaker's Avatar
Joined Jan 2005
Yes, different expiry dates. Also the "Q"'s are serial monthly, whereas the "U"'s are tri-monthly, so I would think they are also traded on different exchanges. Maybe one of our American friends can tell us which exchange codes these are ? My guess is that the "Q"'s are Nasdaq listed, but the what exchange is the "U"'s ?
__________________
Good judgment comes from experience. Experience comes from bad judgment.
Profitaker is offline   Reply With Quote
Old Dec 22, 2007, 12:45am   #10
 
5 Posts
Joined Dec 2007
beckhamm_7 started this thread Thanks guys for catching that. Sorry for the trouble.
beckhamm_7 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Basic question dod Futures & Options 17 Apr 11, 2008 10:41am
Basic EasyLanguage Question theknifemac Trading Software 2 May 1, 2006 6:00pm
Basic question on continous contracts OpenMind Futures & Options 6 Apr 10, 2006 5:35am
Basic Question bobmick Commodities & Money Markets 7 Jul 20, 2005 8:55pm
Basic Tehnical Question james6848 Technical Analysis 6 Mar 17, 2005 11:06pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)