MINI Option RFI

Malcolm Myles on

Hi Clubbers,

Has anyone read anything about how Mini's are being priced? I believe they are stand alone equities but they appear to be just a few cents shy of the standard option (at least for Apple). This is interesting to me because I was thinking that there may be a way to trade the difference - write a standard contract vs write two 5x mini contracts with one week and two week expiration (a ladder of sorts). But with the speed and small difference I'm observing, I'm afraid only Quants w super computer, flash crash inducing algorithms will be using this difference to generate trades. That is not really a good thing for Mr. & Mrs. Investors, in my opinion.

Nice article on Minis... the web has lots of them, but no pricing information.

http://community.tradeking.com/members/optionsguy/blogs/111458-mini-options-a-crash-course-for-options-traders

Malcolm

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