XSP vs SPY

Discussion in 'Options' started by Drawdown Addict, Oct 3, 2024.

  1. deaddog

    deaddog

    Frugal is the word I prefer. :)

    But fees and commish add up. Like walking away from the blackjack table having lost you stake and the dealer has a hundred bucks in tips. :(
     
    #11     Oct 8, 2024
  2. If your broker does not charge commissions for trading certain ETFs, look at the spread and you will see where the commission is applied. It is a common trick to offer "free ETFs" where the spread is wider and you end up paying the same amount per trade.
     
    #12     Oct 8, 2024
  3. ph1l

    ph1l

    Zero-commission ETFs don't appear to have higher spreads (at least in U.S. markets).
     
    #13     Oct 8, 2024

  4. I strongly prefer XSP. I write short term contacts.
    The bid-ask spread isn't as bad as it seems, the MM will hit the mid +- a penny in calm markets. Cash settled and 1256 and free of index fees up to 9 contacts.

    SPX is better but you should be trading when you have 50-100K in your account or the sizing is going to bite you.

    At $0.50 commissions per trade, 10 spy contracts is $5 so I'm more than willing to accept $0.50+0.50 index fees to get 10X sizing in SPX

    Liquidity gets better every day
     
    #14     Oct 9, 2024
    Drawdown Addict likes this.
  5. deaddog

    deaddog

    Limit orders fix that
     
    #15     Oct 9, 2024
  6. If you look at BID/ASK you seem to be right but look at all markets when compared to ES Futures.

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    Cells and annotations are slightly off because it is a quick collage from different websites.
    I apologize for the brain fart.

    ES is supposed to be the underlying for all markets.
    SPX and XSP are following closely as expected, but look at those 2 points of difference in the SPY market.
    That is where they get the cash, it makes sense, they are not going to run an ETF for free.
     
    #16     Oct 10, 2024