Having heard about Single Stock Futures (SSF) for a while, lot of
questions arise in my mind (and may be in your too..).
First and formost, whats the difference between SSF and Options on
Stock?
Is one riskier then other. (I am completely well versed with options,
but a rockie in SSF).
About commissions, are SSF commissions less or more then Options
commission??
Does one require more money to trade SSF's then options? (Options can
be traded at dirt cheap as $25 per option contract, but the
commissions and the bid/ask spreads sometimes doesn't make sense to
trade that low, as it eats out the % gain...anyways, but yes, you can
trade options as cheap as that...
Regarding volatility and the options chain....it takes lot of
analysis, time and "what if" parameters to arrive at a decission for
the risk/reward.
But futures have only one expiry date (depends on the month you
select) and the futures price is available for you to go long or
short. So, is analysizing the futures contract much easier then the
options???
Does technical analysis play the same role when dealing with options
contract and SSF?
What happens if the stock splits or gets acquired or merged with
another company? What happens to the futures contract?
Would appreciate of someone who is well versed with both the worlds
of options and futures can shed some light on these and other points
if
I missed on any.
Thanks in advance.
discussions