I understand that the CBOE (and also the CME), have become very aggressive in their PR activities. I assume because now they are "for profit" organizations, (I am not sure about the CBOE).
I guess I view this with a mixed view, they are trying to be friendly to the investing public (a good thing since we were the "customers using their facilities” on the other hand, ant PR exercise tends to paint far too rosy a picture. i.e. investing is serious business and one must be prepared (and educate oneself), so we do not end in the poor house. Particularly option trading.
there is definitely some bravado going on here as NDX options have been trading at the CBOE for a long time before QQQ tracking stock at AMEX. then CBOE releases VXN and AMEX QQV shortly thereafter.
Yes, I agree, and this is my theory for this:
There is a substantial difference between trading the NDX options and the QQQ options.
NDX is a big boys and girls instrument. (i.e read mark to market and either win or lose quick and big)
QQQ's One can own and hold a share of the trust so in case something goes "wrong" (example, sell a naked put on the Q's and if put on, well then we are now a "LTB&H investor" who can, under worse case scenario, inherit the Q's to one's relatives.) Whereas the NDX is a cash settled index. i.e. win or lose is short term .... As in "here and now" -gg-
Therefore, The Q's can be "marketed to a slightly different audience. Options of course, are riskier, but the potential participant is of a different nature of a trader on the NDX... And the exchanges are interested in making attractive their facilities so more "clients" come their way by making the potential prospects "feel good" with the respective PR.
This, of course is my opinion. |
