Baby SPY?

Discussion in 'ETFs' started by kmiklas, Feb 1, 2019.

  1. Here's a "fun" exercise: Look at your past trades, and log some new trades, at least on paper, using your system. Get a free options graphing tool like:

    https://www.hoadley.net/options/strategymodel.htm#download.

    Or use sites like this to analyze and/or get past option prices and/or IV:

    http://www.optionistics.com/quotes/stock-prices

    or http://www.ivolatility.com/options.j?ticker=SPY:NYSEArca&R=1&period=12&chart=2&vct=

    [​IMG]

    [​IMG]

    Then you can estimate what your trades would have done if using options instead of long stock. Try long calls, verticals, condors, whatever you like. Yeah there will be some inaccuracies, but if you work at it a little you can get a pretty good idea how things would have gone. Ballpark, anyway.


     
    #11     Feb 1, 2019
    kmiklas likes this.
  2. ET180

    ET180

    The commissions with IB tiered rate is not bad. Probably cheaper than other brokers charge to trade stock. There's gotta be cheap ETFs, but they will also be less liquid so you have to factor that into your trading costs. Just buy fewer shares.
     
    #12     Feb 1, 2019
    kmiklas likes this.
  3. Visaria

    Visaria

    You can buy a single share of SPY if u want. Dont really understand your query tbh.
     
    #13     Feb 1, 2019
    murray t turtle likes this.
  4. How about SPXL / SPXS?

    3X Leverage @ $40 / $24 per share... :thumbsup:
     
    #14     Feb 1, 2019
    kmiklas likes this.
  5. kmiklas

    kmiklas

    I want to trade in round lots. Buying odd lots results in nonstandard routing, and also messes up my math.

    Example: Nasdaq:AMD
    - Buy 100@20.00 = $2000.00
    Price moves to $21 - Average up
    - Buy 100@21.00 = $2100.00, total 200 shares $4100
    Price moves to 22. Average up
    - Buy 200@22 = $4400, total 400 shares $8500
    Etc...

    Do this with SPY @ $270 per share and I’ll quickly be up into five or six zeroes. I don’t have that kind of cash, but I still want to trade the S&P like this.
     
    #15     Feb 2, 2019
  6. Visaria

    Visaria

    I don't know.

    If in total you buy 10 shares...only 2700 dollars?....too much?
     
    #16     Feb 2, 2019
  7. kmiklas

    kmiklas

    10 shares is an odd lot. Typically we trade in 100-share lots.
     
    Last edited: Feb 2, 2019
    #17     Feb 2, 2019
  8. Visaria

    Visaria

    Well evidently u can't afford to. Therefore u must trade in odd lots.
     
    #18     Feb 3, 2019
  9. kmiklas

    kmiklas

    ...or trade something that gives me roughly the same exposure; like a “Baby Spy.”
     
    #19     Feb 19, 2019
  10. Visaria

    Visaria

    You sound like you are part of a major financial institution.

    I guess not though lol.
     
    #20     Feb 21, 2019