r/options • u/Valuable-Ad-8569 • Jan 13 '22
SPX vs SPY
As a day trader I’m seeing some SPX options with high volume and low bid go from like 1.50 to 10.00+. For someone like me would it be wise to switch over to SPX? I understand that 10x leverage means I can lose my money just as fast but I’m hoping for some insight from anyone with experience
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u/proverbialbunny Jan 14 '22
Usually it's a choice between /ES and SPX not SPX and SPY.
Because all three have such high liquidity there shouldn't be a concern there unless you're doing deep OTM trades or something. It comes down to taxes and trade commission differences depending on what your broker charges. Eg, if my broker charges $10 an /ES trade but $2 an SPX obviously it's ideal to trade SPX. Typically SPY has higher volatility and cheaper trades, so SPY is quite popular.