SPX or SPY

What is better to use for spreads, SPX or SPY?
SPX has additional cost but no assignment risk.

Is there anything else to consider?

 

You mean option spreads?

Notional for SPX also much higher so I doubt the additional costs...

Also no divvy in SPX!!

 

Yes option spreads. So there is no big difference for the purpose of trading option spreads?

 

Take a look at UPRO & SPXL

 

SPX are traded European which is nice. They also have preferential tax treatment.

 

SPX has much lower cost and tighter bid/ask spreads, when you compare $50 spread on SPX vs 10x $5 spreads on SPY (at equivalent strikes).
On 10x SPY your commissions & spread/slippage could end up costing you 5-10 more than equivalent trade on SPX.