Weekly SPY options

SPY is not an index; it's an ETF based on the S&P 500. SPX is the index and that's cash-settled.

Good luck!

 

I thought he sold the further faraway option 6/18 expiry and bought the more recent one the 6/15 expiry? Wouldn't that be credit, no? And by the time when the 6/18 assigns, if it assigns, he will be just short since the 6/15 call would've expired so he would just be short and no synthetics.

 

They way I read it he bought the 6/18 calls and sold the 6/15 calls for .02.

 

Sorry for the confusion..I bought the calander for a .02 debit...

Bought the June 18 call,sold the June 15.

1.17 dividend on the 15th..Didn't initially catch the div

 

Tao,

you said you use to trade SPX,

wondering why you went SPY, as you lose 1256 contract then

 

Hi Indy,

Good question..I traded SPX when I worked on a derivatives desk, bit have been trading and spreading the weeklys on SPY..

Not sure what you mean by lose 1256 contract..

 

It always seemed better to me to go futures ( ES ) or index ( SPX )

Because the 1256 contract is on indexes or cash settled... you gain the tax advantage of 60% long term / 40% short term .. I think that works out to 30.6% taxes for highest tax bracket..

Highly more beneficial I would think???