Are there Pros and Cons to trading SPX options instead of SPY?

Discussion in 'Options' started by Scataphagos, Aug 29, 2022.

  1. ffs1001

    ffs1001

    SPY = for newbies and small timers

    SPX = for sizeable accounts and professionals.

    End of.
     
    #11     Aug 30, 2022
  2. TheDawn

    TheDawn

    The two biggest advantages I can see that SPX options have over SPY options is that 1) it's cash-settled at expiration and you never take physical delivery that could result in bigger losses and 2) it's a Europen option so there is no risk of early assignment against you. This is especially important if you do box spreads where you buy a bull call spread and a bear put spread at the same time otherwise this could happen to you: https://www.democraticunderground.com/100211709711
     
    #12     Aug 30, 2022
  3. #13     Sep 3, 2022
  4. Understood SPX is not traded as it is an index not an ETF. Options are the ONLY way to trade SPX.
     
    #14     Sep 3, 2022
    TheDawn likes this.