ES options vs Spy options...
- Thread starter Swan Noir
- Start date
Here are some differences:
For ES options, it's as easy to short the underlying as to buy it. When you short ES it will never be called away due to a short squeeze or short-selling restrictions, which is not true of SPY.
Difference in liquidity. Compare bid/ask spreads in the options that interest you.
Sensible, easily-understandable risk-based SPAN margining in ES vs incomprehensible SEC margin rules in spy.
Different tax treatment
rmorse
Sponsor
Yes, the tax advantage is available to futures, options on futures, cash indexes and options on cash indexes. These products also have generally wider electronic spreads and are harder to trade. I think only very experienced traders should open futures accounts or trade high priced indexes with wider spreads. SPY is much easier to trade with very narrow spreads that are very liquid.
you can also trade es options around the clock (well at least when globex isn't down for maintenance). be careful since liquidity isn't there though.
Spxpm from 4th October electronically traded spx. Twice the size of es. Have been comparing spx and es margins in tws and the portfolio margin is more generous than span for this product. Other products span is better, eg compare si and slv.