UPS Stock Futures?



There is a new financial instrument available, which started trading last November called "single stock futures." From what I understand there are two main exchanges, which trade them. One is named Nasdaq Liffe Markets and the other is OneChicago. I don't see UPS being traded on either exchange, although I wouldn't be surprised to see it down the road as these markets develop. If UPS stock futures were traded, I'm sure the December contract would carry a premium price because of seasonal influences. Geez, just like trading corn or wheat!

The contract sizes are 100 shares of the underlying security and the margin requirements appear to be about 20% of the contract value. Even though trading in UPS stock futures doesn't exist at this time, this could be a good opportunity to learn about the ins and outs of these products. From what I understand, volume and open interest is still fairly light on both exchanges, but is expected to grow over time once the public gets educated about the subject. Personally, I wouldn't invest in these for retirement planning because they are not investments, but something you trade on a fairly short-term basis with money you can afford to lose.

Interesting subject. Posted FYI and for discussion.