SPY Weeklys vs SPX Weeklys

Discussion in 'Options' started by Cdntrader, Mar 15, 2012.

  1. What is the state of this war?

    Which is better? tighter spreads? deeper liquidity?

    I know. I know. I should look this stuff up. But I'm just too lazy.:D
  2. rmorse

    rmorse ET Sponsor

    In my opinion, you can trade SPY with electronic platforms. For trading SPX, it's best to pay a broker. If you need to get in and out quickly, markets are too wide.
  3. Depends what your goal is too. I like credit spreads so Weeklies on SPX are quite profitable from that point of view and if you do hit your short strike you aren't in the risk of being assigned. I just hate being assigned stock. Pain in the butt!

    As for wide-bid ask spreads, I find a couple cents above the midpoint gets filled super fast with IB. Not sure if that has anything to do with Ib specifically.
  4. FSU


    SPY Weeklies are traded electronically, unlike the regular SPX, so a broker wont really help here.

    I love this product. Fairly tight spreads, and electronic environment. Also cash settlement and no early exercise.
  5. SPY is American Styled
  6. spxpm is looking more attactive from a volume/open interest perspective. friction would drop significantly from trading spy if it became viable. spx pit is likely going away.
  7. FSU


    Sorry meant to say SPX weekly are electronically traded unlike regular SPX and no early exercise
  8. Might as well be european because divs are only on maturities and who really cares about the deep ITM put.
  9. Do you mean SPX weeklies?

    I compared the spreads. They are too wide still on the SPX weeklies. They need to try harder to win over the SPY volumes imo.

    It will only be worse now that 10x SPY options are coming.
  10. FSU


    Yes, Typo.
    #10     Mar 16, 2012