I enjoy condescension.. keep it coming.... everything is measurable...10 fly's in spy is 40 contracts....that equates to 28 dollars in commissions at IB..that's just to enter.... 56 round trip... 1 Spx fly 2.80 in. 5.60 roundtrip..... now your telling me your great fill in spy will offset that..... give me an example
ya but if you want out fast ..good luck. When they figure out the game of smoke and mirrors b/o's is over, maybe then they'll make a real market that competes with spy.
You mean liquidity is an issue on big moves....they squeeze order flow... they can't get away with that in spy I gather... easy to over hedge with futures on swift moves.... trading noise in the underlying is a nightmare... better to ride the move in the underlying.. es.... then try to "get out". And if it moves to fast your obvious short more gamma then you have the capacity to manage..
The bid/ask spread will be tighter for the spy and you can trade much smaller. However, at tax time the spx will (likely) have the advantage due to the 60/40 tax rule that allows some short term profits to be taxed as long term capital gains. It should also be noted that the SPY options are American style while SPX options are European style. (This means SPX options can not be exercised before expiration.)
I'm clueless about Greeks. I like to take big risk. I like to make big money. Liquiidty and Volatility is all I ask for.