Trading E-Minis / SPDRS or Stocks

G

gr8stock

What are you trading stocks or E-Minis.

After trading stocks for few years I am starting with E-Minis. Trading E-Minis you do not care about company earnings, markets makers, analysts, etc. It appears to be much easier to trade. Is it?

Why there is a price difference between SPY - closed today 87.51, S&P Index – 871.13 and ES – 871.50. Fair value for ES would explain the price difference ES vs Index. However, why SPYs are much higher?
 
I don't trade e-minis, but I do exclusively trade ETFs such as SPY, DIA, and QQQ.

Since switching to ETF trading about a year ago, my profits have been much more consistent and the drawdowns are less signficant due to the diversification factor of ETFs. They also typically trend better than individual stocks and you're right that you don't really need to pay as much attention to individual news, earnings, etc.

Regarding your question about the price difference between SPY and the S&P futures, that can be attributed to the expense ratio of SPY, which is 0.12%, and also dividends. I have a few educational articles on ETF trading if you are interested in learning more. Go to http://www.morpheustradinggroup.com and click on the "archives" section of the web site.
 
Who cares?
If you paid .0003% higher you will sell em that much higher.
Stop playing analyst.
E minis are better for flipping, ETF's are just as liquid if you have 25K capital. It really does not make a difference.
E Minis have better tax treatment.
If capital is limited then trade E minis.
 
Yes, e-minis have better tax treatment and do require less capital. The main reason I like to trade ETFs instead of e-minis is that I have more choices. On days when the broad market is choppy and in a narrow range, I can trade one of the sector HOLDRS that is showing relative strength or weakness instead. There are about a dozen different ETFs I trade. For what it's worth. . .

Deron
 
DIA and QQQ both trade in Single Stock Future form. SPY doesn't even have Options traded from it.

Keep watching the Single Stock Futures exchanges if you're interested in ETFs, as they will add more. *

You do not need $25,000 for SSF trading, there is no daytrading limitation to them, and margin is 5:1 at all times, day, night, weekend.

www.nqlx.com

www.onechicago.com

* These ETFs are currently available from NQLX:

iShares Russell 1000 IWB
iShares Russell 1000 Value Index Fund IWD
iShares Russell 1000 Growth Index Fund IWF
iShares Russell 2000 IMW
iShares Russell 2000 Value Index Fund IWN
iShares Russell 2000 Growth Index Fund IWO
iShares Russell 3000 IVM


 
Why there is a price difference between SPY - closed today 87.51, S&P Index – 871.13 and ES – 871.50. Fair value for ES would explain the price difference ES vs Index. However, why SPYs are much higher?

Thats because the value of SPY includes dividends
 
How long must you hold the SPY before you will be eligible to receive that dividend though? Therefore, to daytrade the SPY, what advantage for the extra $6??
 
Whether you hold SPY through the dividend payment date is irrelevant because the opening price of SPY will be adjusted to reflect the dividends paid the next day anyway. It ends up making no difference to your bottom line because you get paid a cash dividend, but lose the same amount of capital gain. Same is true with the bond ETFs (SHY, TLT, IEF, LQD)
 
You must log in or register to reply here.
Back
Top