Options on Futures

Does C2 support trades for options on futures, primarily ES and other stock index futures?

Not currently.

We do however support options on ETFs, and for common index instruments you can generally find an equivalent.


This question gets asked periodically.

Maybe you can put this your exact statement in your help information.

For example, in the Futures Symbology popup. I would put in in bold, so it stands out though…

This might also be good wherever you put Options explanations, also…


Thanks for the reply.

Would it be possible to add Index Futures Options, specifically options in the ES? Here is the reason------

Options on futures receive preferential tax treatment, 60% LT and 40% S/T, in the same way that gains/losses on futures are treated. Apparently, options on broad based stock indices that settle to cash are treated the same way as futures/options on futures and receive the same 60/40 split. An example of such a cash index with options in the SP 500 is the SPX. However, the options on the SPX trade with a wide bid/ask. The ETF equivalent is the SPY which has a narrow spread, but gains on options in the SPY would not receive the preferential tax treatment that options on the ES would.

One other reason to favor the ES is that they have a larger value than the SPY and would therefore have lower transaction costs for commissions since it would take 5 SPY contracts to equal one ES contract.