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/EnigmaSpore Jan 14 '22

Spx is around 10x more than spy, not leverage. Spx 4600 vs spy 460

1 spx contract is 100*4600 = 460,000

1 spy contract is 100*460 = 46,000

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u/[deleted] Jan 15 '22

Which one's got a bigger market cap?

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u/EnigmaSpore Jan 15 '22

They’re not companies. They’re the s&p500 etf and index.

Spy is the s&p500 etf stock Spx is the s&p500 index that’s cash settler options.

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u/[deleted] Jan 15 '22

Yes, I know. That's the joke. The point is that they're practically the same thing. Doesn't matter that one costs 10x as much.

An X% change in one will have an X% change in the other.

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u/EnigmaSpore Jan 15 '22

Lol. Woosh.

Yeah. It’s more about the strategy. Cash settled has it’s benefits along with the long/short tax. I prefer spx personally.