Hey guys, just wanted to know is there any major difference between the option of the two indices except that one is cash settled / 10x / tax treatment?? I mean as a retailer which index would u prefer trading the most. I see liquidity of spy to be the greatest never saw the bid ask of spx but wanted to know which index u trade the most and why?? Thank U 🙂
Posted by TradingBulls07
2 Comments
Tax. Lookup sec 1256. If you have the funds, always trade SPX or just stop and trade futures.
I used to trade both and now just trade ES since I don’t have to worry about theta. Same chart as the others
Here are my ¢.02 for people who may want to trade SPX. The % returns can be major when it goes in your favor, but you also have to be mindful about when it goes against you, the +50% can go -50% real quick so risk management has to be on point and followed.
If you don’t have success with SPY, you shouldn’t even be looking at SPX (not you OP, just in general)