NDX/QQQQ---SPX/SPY---RUT/IWM---Which Options Better???

increasenow · Aug 12, 2007

which options are better to trade and why?...liquidity, spread, bank for buck etc.?....thanks for your insight...

MTE · Aug 13, 2007

See here. There's a link to another thread in there as well.

cdowis · Aug 13, 2007

Considering spread and commission costs, I find the RUT more cost effective than IWM.

increasenow · Aug 13, 2007

is not the RUT spread wider than the IWM?

MTE · Aug 14, 2007

Quote from increasenow:

is not the RUT spread wider than the IWM?

Yes, but RUT is 10 times the IWM so a 0.05 spread in IWM is equal to the 0.5 spread in RUT.

flsupraguy · Aug 15, 2007

I love the Q's and thats all I play. Pretty much a 1 cent spread most of the time and is taxed lower at 23% under 1256.

increasenow · Aug 15, 2007

Quote from flsupraguy:

I love the Q's and thats all I play. Pretty much a 1 cent spread most of the time and is taxed lower at 23% under 1256.

how many contracts per day and how long do you hold them?

flsupraguy · Aug 15, 2007

The Q's move very fast so I usually play them intra day. I suggest trading same dollar amounts. Never risk anything you are not willing to lose. For example, start small. Do $1000 trades (or lower if that is too high of a starting point). Once you do 10 consistent trades bump your trading size to $2000 ect ect. Once my trade goes through I immediately place a sell limit order for around 10 cents above (I trade options). I try to go for consistent small gains rather than getting rich/poor on any particular play. I suggest you practice many times before jumping into the Q's.

kny3 · Aug 22, 2007

Quote from flsupraguy:

I love the Q's and thats all I play. Pretty much a 1 cent spread most of the time and is taxed lower at 23% under 1256.

Q's don't get 1256 treatment.

kny 3

insaneinvestor · Aug 22, 2007

Quote from flsupraguy:

The Q's move very fast so I usually play them intra day. I suggest trading same dollar amounts. Never risk anything you are not willing to lose. For example, start small. Do $1000 trades (or lower if that is too high of a starting point). Once you do 10 consistent trades bump your trading size to $2000 ect ect. Once my trade goes through I immediately place a sell limit order for around 10 cents above (I trade options). I try to go for consistent small gains rather than getting rich/poor on any particular play. I suggest you practice many times before jumping into the Q's.

I don't know about the options part (I will start to watch) but the RUT moves more intra day than the Q's. - However, I have been unable to get out of a position for several days. . .

Do you just buy str8 up options or do you spread?