Baby SPY?

[Option_Attack]

Here's a "fun" exercise: Look at your past trades, and log some new trades, at least on paper, using your system. Get a free options graphing tool like:

https://www.hoadley.net/options/strategymodel.htm#download.

Or use sites like this to analyze and/or get past option prices and/or IV:

http://www.optionistics.com/quotes/stock-prices

or http://www.ivolatility.com/options.j?ticker=SPY:NYSEArca&R=1&period=12&chart=2&vct=

Then you can estimate what your trades would have done if using options instead of long stock. Try long calls, verticals, condors, whatever you like. Yeah there will be some inaccuracies, but if you work at it a little you can get a pretty good idea how things would have gone. Ballpark, anyway.

If Options, how far out?

I normally like to buy the equity outright so that I’m not on the clock, and don’t have to worry about expiration.

 

[ET180]

There’s also higher fees for Option trades.

There’s no cheaper ETF?

The commissions with IB tiered rate is not bad. Probably cheaper than other brokers charge to trade stock. There's gotta be cheap ETFs, but they will also be less liquid so you have to factor that into your trading costs. Just buy fewer shares.

 

[Visaria]

Gm All,

I’m looking for a less expensive version of SPY. Any suggestions?

At the moment the price is 270.81. I like to grow and shrink my positions from 100 to 2100 shares. At this price, 2100 shares would cost about USD 567,000.

I simply don’t have that kind of cash lying around, even with leverage.

Is there a cheaper exposure to
The S&P out there, with good liquidity?

Thx
Keith =)

You can buy a single share of SPY if u want. Dont really understand your query tbh.

 

[netarchitech]

How about SPXL / SPXS?

3X Leverage @ $40 / $24 per share...

 

[kmiklas]

You can buy a single share of SPY if u want. Dont really understand your query tbh.

I want to trade in round lots. Buying odd lots results in nonstandard routing, and also messes up my math.

Example: Nasdaq:AMD
- Buy 100@20.00 = $2000.00
Price moves to $21 - Average up
- Buy 100@21.00 = $2100.00, total 200 shares $4100
Price moves to 22. Average up
- Buy 200@22 = $4400, total 400 shares $8500
Etc...

Do this with SPY @ $270 per share and I’ll quickly be up into five or six zeroes. I don’t have that kind of cash, but I still want to trade the S&P like this.

 

[Visaria]

I don't know.

If in total you buy 10 shares...only 2700 dollars?....too much?

 

[kmiklas]

I don't know.

If in total you buy 10 shares...only 2700 dollars?....too much?

10 shares is an odd lot. Typically we trade in 100-share lots.

 

[Visaria]

Well evidently u can't afford to. Therefore u must trade in odd lots.

 

[kmiklas]

Well evidently u can't afford to. Therefore u must trade in odd lots.

...or trade something that gives me roughly the same exposure; like a “Baby Spy.”

 

[Visaria]

10 shares is an odd lot. Typically we trade in 100-share lots.

You sound like you are part of a major financial institution.

I guess not though lol.