S&P 500 options trades are often negotiated in a delta-neutral manner, frequently involving a synthetic combo. Trading OTC has allowed participants to make capital commitments in a private, bilateral negotiation. Now delta-neutral E-mini S&P 500 options blocks may provide a more capital-efficient listed alternative to OTC combos.
Increase capital efficiency
Save with margin offsets on listed, delta-neutral covered futures and options block trades for relief from common OTC charges related to Basel, RWA, and SLR.
Manage exposure with no break-up risk
Mitigate counterparty credit exposure and get a 100% match guarantee with a delta-neutral covered options block at CME Group. The trade is bilateral with no need to expose the trade.
No ISDA or CSA documentation is required to execute a covered futures and options block trade at CME Group, making more seamless execution possible.
Get a delta-neutral proxy for OTC combos
Trading delta-neutral is the preferred convention for larger S&P 500 options trades requiring capital commitment. Covered options block trades can replace the need for an OTC synthetic combo.