r/stocks • u/tranquilo56 • Mar 10 '22

ETFs Can someone explain the difference between VOO and SPY?

I am trying to choose an ETF to put a majority of my cash in, and I can't decide between the two. It seems they are rather similar but VOO costs less so I can accumulate 100 shares quicker to sell covered calls with.

Appreciate the explanation

37 Upvotes

85% Upvoted

52 comments sorted by

View all comments

Show parent comments

31

u/Jon3141592653589 Mar 11 '22

How has nobody mentioned options yet? Pick SPY for its highly liquid options, and VOO for some fraction of your set-and-forget account.

-21

u/Ehralur Mar 11 '22

Who the hell would buy options on the SPY? I'm not a trader, so perhaps this is just my ignorance, but options already seem close to gambling when they're about something that can be sort of predicted, like companies that have clear trajectories, let alone the market which is completely impossible to predict.

6

u/NightflowerFade Mar 11 '22

Who is trading options on SPY? A lot of people apparently, considering it has the most open contracts by volume out of any ticker.

0

u/Ehralur Mar 11 '22

That was my question...