Mini Options on AAPL, AMZN, GOOG, GLD and SPY

The advent of mini options contract on CBOE market opens new window of opportunity for smaller options traders. Currently, the mini options are offered for the following high-priced liquid stocks and ETFs: AAPL, AMZN, GOOG, GLD and SPY.

The significance of the new mini options will only affect smaller account rather than the previous introduction of weekly options last year. Mini options contract size is 1/10 of regular contract options  (regular options = 100 shares).  With the same structure of strike price and options period, all the strategy possible in regular options will be available on 1/10 size. This effectively opens opportunity for smaller account traders.

One concern regarding mini options is the transaction cost involved in trading them. Most likely these cost will increase as the average costs go up. Either way, this is a welcome addition to the already hectic options market!

 

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