Why not use SPX options instead? They are cash settled, and so one wouldn’t need to risk-manage the position on expiration day so as to avoid waking up the next day and being short 1000 SPY shares in case SPY closed at $411. One SPX option corresponds in size to 10 SPY options at roughly the same strike.
Those who want to trade smaller size could use XSP options, which are equivalent to SPX options but one tenth the size. Both SPX and XSP options trade also overnight.
Hoping you will spend one of your four remaining weeks talking about spreads, narrow versus wide. And wondering if there’s a difference on the call or put side. Either way thanks for the 50 trades and 50 weeks.
Thanks for the nice write-up!
Why not use SPX options instead? They are cash settled, and so one wouldn’t need to risk-manage the position on expiration day so as to avoid waking up the next day and being short 1000 SPY shares in case SPY closed at $411. One SPX option corresponds in size to 10 SPY options at roughly the same strike.
Those who want to trade smaller size could use XSP options, which are equivalent to SPX options but one tenth the size. Both SPX and XSP options trade also overnight.
Great article this week. Appreciate it .
Hoping you will spend one of your four remaining weeks talking about spreads, narrow versus wide. And wondering if there’s a difference on the call or put side. Either way thanks for the 50 trades and 50 weeks.