I guess unless you are under-capitalized, it would seem foolish to trade anything by the SPY. It has much more liquidity and almost no default risk. Even if you can buy stocks at a discount to intrinsic value there are so many things that can go wrong even if a company has steady cash flow, etc. (law suits or management screw ups can happen any time and there is no way to predict them). You are basically walking the tight rope every day. I am not sure that the larger returns promised by stocks outweigh the benefits that SPY provides. Thoughts?