i have traded oex index options in the past so i am familiar with them but most of you guys talk about spy and various etf's.To be honest i dont know shit about spy or the etf's but i gather spy tracks the sp500 and is similar to dia?Also what is it that guys like about spy's and the etf''s vs other derivatives?Do they mess around with premiums a lot?Is the time decay pricing sketchy?OEX can be quite hair raising at times.
I've traded both. Spy advantage is tight bid ask spreads, but I get creamed on commissions due to low price. I was selling iron condors on OEX with much better results but lately I've been getting creamed. Now I just scalp the vix. It's the only thing I don't seem to screw up. Unless you get really good rates (or a not per contract rate) i would stick with OEX.
How would one "mess around with premiums" stuff like the SPY is listed on 6 exchanges with probably near 100 different firms making markets in it all in different places. Time decay, is no mystery in any option these days, any option no matter what the underlying. OEX is no more hair raising then any other index option.