Currently I scalp trade SPY on Robinhood. I buy 0TDE contracts that are cheap and sell em after a few cents increase on the premium for a nice little profit, been working great for me so far. Would I be better off doing this against SPX on another platform? What are some pros/cons between the two tickers?
Posted by __Hat_Man
6 Comments
Taxes and commissions. SPY is more liquid, but it is no where near as volatile as SPX since SPX is 10x SPY. SPY is good especially if you have a small account, but you will end up spending a lot on commission in the long run. SPX also has different tax rules which make it more favorable to trade.
Personally, I would trade SPY if you have a small account or want to minimize risk.
I mainly do SPX and get some good gains. Like 400% to 1000%. I do however trade with a group that helps me with direction
QQQ >
Also it is cash settled, which I prefer
I’m surprised no one has mentioned XSP. It’s the same pricing as SPY (SPX/10), but it’s an index like SPX, and it’s cash settled. It’s the correct answer to your question.
how do you measure when an option is “cheap” ?