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Trade Iron Condor for $OEX Same as for $XEO? | PowerOptions Web Log
At PowerOptions, we receive a lot of really good stock options related questions from our customers. A question we recently received related to our PowerOptionsApplied newsletter service was “can I trade your Iron Condors for $OEX just the same as for $XEO?” American vs. European The underlying for options for $OEX and $XEO are based on the same index, the S&P 100. However, options for the $OEX are American style and options for the $XEO are European style. American style options may be exercised early and European style options may not be exercised early. $OEX vs. $XEO For the Iron Condor positions we trade for the PowerOptionsApplied Optium and Chromium newsletters, we select positions which are initially significantly out-of-the-money and avoid allowing positions to go in-the-money. In this case, the $OEX or $XEO options may be used in a similar manner, as the likely-hood of an out-of-the-money option being exercised...