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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (1060)	12/27/1999 1:02:00 AM
From: KFE	Read Replies (1) \| Respond to of 2317

OX, All else equal, I would think SPX would be a preferred vehicle for spreads rather than OEX. Similar spreads offer less prem on SPX, but that's the Euro vs American trade-off. In particular I'm thinking of butterfly spreads where you don't want to get exercised prematurely The main reason I prefer the OEX vs. the SPX is the liquidity and the bid/asked spreads. The bid/asked spreads are significantly better on the OEX. Early exercise is generally not a problem with the OEX because even deep ITM options hold some premium until almost the last minute. Remember that European Index options also settle at Friday's opening prices (after all the components have opened) and something that you may have wanted to cover at a certain price may now settle above that level. Regards, Ken