SPY

Discussion in 'ETFs' started by pullingteeth, Jan 27, 2014.

  1. I'm used to long and shorting SPY--the next step: options or e-mini? Thoughts?
     
  2. Try out SPY calls and puts.
     
  3. ammo

    ammo

    depending on your clearing firm and acct size,you can sell call sprds or put sprds and catch the move with a smaller risk of premium erosion,and on trend days just long puts or call as the vix usually rises and the premium erosion is less
     
  4. 1245

    1245

    You should learn to trade the S&P e-mini. The tax advantage of the 60/40 rule can make a big difference in what a good trader gets to keep.

    1245
     
  5. Wow, you're so right--that's a real advantage to futures, but are puts/calls a more efficient way even including taxes, of capturing moves? I guess I need to work out the math.
     
  6. 1245

    1245

    If you were scalping SPY, I would consider switching to ES. If you were trading SPY option, consider the SPX options. Cash settled options are also 60/40. SPX has lower commission costs than SPY and ES. Why, because the an SPX contract is equal to 10x the value of SPY and 2x the value of ES.

    1245
     
  7. What time-frame you were trading?

    If you were making 1-5 trades a day then try ES emini

    If you were making 2-3 trades a month try options

    If you were making longer-term trades then stick with what you were doing. Short-term trading is totally different game. Set aside some funds and try it before jumping into.