SPX options are hedged with SP contracts. I don't see what would be hard about hedging.
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ES or SPX options
- Thread starter yip1997
- Start date
Cost of carry gives SP a directional bias that doesn't exist with SPX. But, then again, SPX options should be on a synthetic future.Quote from thegazelle:
SPX options are hedged with SP contracts. I don't see what would be hard about hedging.
You're right, it shouldn't matter. My mistake.
The margin requirement for SPX is going to come down a lot on April 2nd, see
http://elitetrader.com/vb/showthread.php?s=&threadid=78820
http://elitetrader.com/vb/showthread.php?s=&threadid=78820
Gentlemen
If you prefer risk against potencial great profit
SPY options are better as es,spx,oex
SPY can take low price in the money
and they are more liquid with low bid ask spread
You can compare 10 spy at 2 with one spx at 20
In first case transaction expense would more high ,in
second in most case spread worster ,alsov with
calculation of quantity
10 SPY * 0.05 spread = 0.5 ,it is not the each case by
one spx at 20
Your respectfully
Example SXZDT c1400 28.50-30 today by spy 1412.30
SXZDB c1410 20.90-22.90 today by SPX 1411.08
SFBDJ c140 2.90-2.95 today by spy 140.94
Last is more in the money ,potencial risk lower ...
If you prefer risk against potencial great profit
SPY options are better as es,spx,oex
SPY can take low price in the money
and they are more liquid with low bid ask spread
You can compare 10 spy at 2 with one spx at 20
In first case transaction expense would more high ,in
second in most case spread worster ,alsov with
calculation of quantity
10 SPY * 0.05 spread = 0.5 ,it is not the each case by
one spx at 20
Your respectfully
Example SXZDT c1400 28.50-30 today by spy 1412.30
SXZDB c1410 20.90-22.90 today by SPX 1411.08
SFBDJ c140 2.90-2.95 today by spy 140.94
Last is more in the money ,potencial risk lower ...