I want to trade some US index options (dow jones or S&p500). Where do I go for the smallest spreads & some good volume (which ticker or which exchange)?
SPX is the S&P 500 and it is very liquid. The spreads are wide, but you can get good fills. XSP is the mini (1/10th the size). You can also trade the SPY (ETF that tracks S&P 500), which has extremely liquid options as well and it trades in penny increments. For Dow you have DJX and DIA (ETF). Also you have RUT (Russell 2000) and IWM (ETF). For Nasdaq you have NDX and MNX (mini) and QQQQ (ETF).