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why no options on SPY
- Thread starter silk
- Start date
Originally posted by silk
I can't seem to find options on SPYders. i can for QQQ. Seems very strange there arn't options on SPY. Am i missing something?
Options are on the index itself SPX, not on the tracking stock SPY. Enter SPX and you will get the options series. Also the S&P100 is represented by the symbol OEX.
Originally posted by silk
It isn't helpful to me that there are options on SPX. For the purposes of covered call writing in a brokerage account.
I think my broker will want to charge me margin on any naked SPX calls i write even though i may own the SPY as a hedge.
That's probably the answer to my question...
Silk,
Although I don't think that the I shares S&P Index has options, many of the products do. They have just about every index under the sun, so it would be worth a look. OEF is the S&P 100 product, and the last time I looked there were options available for it.
Now, for my question, have you ever considered the merits of selling puts instead of writing calls? The risk is similar, and there is a little more flexibility. I used to sell a lot more covered calls than I do now. The biggest downside that I see is that when you get a snap back rally you are holding positions that can cost you more to get out of than you stand to make.
Also, if the put goes against you, you can short the underlying to mitigate your risk.
Regards,
Although I don't think that the I shares S&P Index has options, many of the products do. They have just about every index under the sun, so it would be worth a look. OEF is the S&P 100 product, and the last time I looked there were options available for it.
Now, for my question, have you ever considered the merits of selling puts instead of writing calls? The risk is similar, and there is a little more flexibility. I used to sell a lot more covered calls than I do now. The biggest downside that I see is that when you get a snap back rally you are holding positions that can cost you more to get out of than you stand to make.
Also, if the put goes against you, you can short the underlying to mitigate your risk.
Regards,