Uncovered Options Trading System
Category: Equity Index Futures / ETF Futures
The Standard & Poor's Depository Receipts Futures have been developed to track the price (performance) of the Standard & Poor's Depository Receipts ETF
(SPY). They were introduced and become available for trading in 2005 year. The SPDRs Futures are traded on the Chicago Merchandise Exchange (CME).
The Standard & Poor's Depository Receipts Futures belongs to the group of the "ETF" futures from the "Equity Index" futures category.
The value of the one Standard & Poor's Depository Receipts Futures contracts is $100 times the value of the Standard & Poor's Depository Receipts ETF. If for example, the Standard & Poor's Depository Receipts ETF
(SPY) is traded at $120, the value of one future contracts gives to a furfures trader a buying power
that is equivalent to $12,000 (100 times bigger). Furthermore, if the
Standard & Poor's Depository Receipts ETF moves up or drops down for one point, the SPDRs Futures contract increase or decline in its value by $100. The tick size (minimum price
fluctuation) of the Standard & Poor's Depository Receipts Futures contract is 0.01 which correspond to $1.00.
The Standard & Poor's Depository Receipts Futures are traded under the "SPY" symbol and the regular trading hours for indexs futures are from 5 p.m. EST to 3:15 p.m. EST on the next trading
day. The SPY futures contracts are classified by the month of expiration. The SPY futures expire on the third Friday of March, June, September and December. Based
on the expiration, the year's number and month's letter are added to the futures symbol for its identification.
The SPY futures that expire in March have "H" letter added, June expiration futures have "M" letter added, for September
expiration futures "U" letter is used and those futures that expire in December have "Z" letter added at the end. Furthermore, the Standard & Poor's Depository Receipts Futures that
expire in December 2024 are traded under the "SPY4Z" symbol, the March 2025 expiration contracts are traded under the "SPY5H"
symbol, June 2025 expiration SPDRs Futures have "SPY5M" symbol and the ones that expire in September 2025 are listed
under the "SPY5U" symbol.
| Ticker Symbol: | SPY |
| Commodity: | Standard & Poor's Depository Receipts ETF (SPY) |
| Available for trading since: | 2005 |
| Expiration Cycle: | Four times a year on third Friday of March, June, September and December. Next four expirations are SPY4Z - December 2024 SPY5H - March 2025 SPY5M - June 2025 SPY5U - September 2025 |
| Contract Size: | $100 x Standard & Poor's Depository Receipts ETF price |
| Minimum Tick Size: | 0.01 = $1.00 |
| Traded on: | Chicago Merchandise Exchange (CME) |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.