Spx options(weekly) vs. ES

Discussion in 'Options' started by antares66, Dec 26, 2021.

  1. Is there an advantage trading SPX options over ES?
     
  2. Robert Morse

    Robert Morse Sponsor

    That depends on your broker and what they require for risk and margin. Also, cost can vary from broker to broker. I like it that ES has longer trading hours but I find many traders make poor decisions in the middle of the night. Trading during liquid hours with more information might be preferred.
     
    MACD likes this.
  3. The leverage of Spx (4.725 x100) is bigger than ES‘ leverage (4725 x50). But this is not so important because you could trade 2 ES slots. The downside risk of options is capped by the premium. My question is if you participate more on Spx options when the index shows some momentum. I refer to increasing volatility and gamma.
     
    MACD likes this.
  4. Kind of like they do during RTH. :)
     
  5. Robert Morse

    Robert Morse Sponsor

    Their option values are tied, or there would be an arb.