Premium difference between SPX and S&P Mini (ES) option premiums

Discussion in 'Options' started by Brennen81, Feb 8, 2017.

  1. Wow. now that I look deeper. If you look at the ATM Puts and Calls for the leaps. The premium for puts are even larger. Not as much as the dividends stated. But now I see.
     
    #21     Feb 8, 2017
  2. JackRab

    JackRab

    No no.. those are aggregate numbers... so next Monday has total 2.79 in it...
     
    #22     Feb 8, 2017
  3. JackRab

    JackRab

    Exactly, if you look at Jan18 options, the ATM is actually around 2277...

    So roughly speaking, 2295 spot + 0.8% interest = 2313
    Dividend priced through options is about 36 (2313-277), which totals 1.5% dividend on S&P500...

    EDIT. to be exact you should use interest over the strike not spot... but at these levels that's not really much of a difference

    EDIT #2. I'm now actually not sure re adding the interest... I think if options are daily settled in cash (MtM) there's no interest in that part since you don't have cash locked in... how are SPX options settled, daily marked to market?? I doubt it though, otherwise the 1 year dividend yield will be 0.8% which is ridiculous.
     
    Last edited: Feb 8, 2017
    #23     Feb 8, 2017