I see some people here trading /MES options instead of index options. What’s the main reason for that? I have seen premiums are higher, but if you take a trade with 1000 spy contracts, it will be the same size as 1 /MES trade. The only reason I can think of so far is fees, but for sure there are more that I am missing
Posted by Comfortable-Entry341
2 Comments
Futures trade overnight and receive favorable tax treatment, and are not subject to auto liquidation in the final hour or even earlier by some brokers
1,000 contracts for SPY is not equivalent to a single MES contract, so the math seems way off
You’re probably going to want to double check those nominal values. Also taxes. Also cash settled. Also trading hours. Also european style. Also SPAN margin.