yes they are just like SPY options but on average 9 - 10 times
the price. For many folks they are too expensive but yes they are
better over SPY if you can do them because of the 60/40 long term
cap / short term cap tax rule.
Posted by jtsurfah on 26th of Jun 2020 at 12:38 am
Consider XSP as an alternative to SPX if size is an issue. Even
1 SPX option is a large chunk of notional value - XSP is 10x vs SPX
at 100x. Same tax treatment.
Downside is that you don't get the extended markets with XSP
that you do with SPX. But how many people even realize that SPX
(and VIX) starts trading at 2am?
Thanks. I’m fine w SPX size; mainly want to understand if
European settlement presents any issues. Don’t want to get taken to
cleaners unexpectedly. XSP doesn’t show good volume yet...too
new.
Thanks Matt. Is there a situation where the European style
exercise at expiration can be an issue? I assume one can just
close out trades before expiration, whether you own or write the
option?
also as I pointed out yesterday, the 60 min cycle indicator went
on a buy yesterday at the lows, and lately price has been
respecting those cycles on the 60 min time frame, no changes there,
no sell cycle yet. Price bounced around on that buy cycle for the
last day and a 1/2
otherwise on the 60 min the MA ribbons are still bearishly
stacked and starting to pinch, so it's one thing to monitor now on
this bounce
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SPX 10 and 5 min
Posted by matt on 25th of Jun 2020 at 03:03 pm
$SPX - Chart Link- 10 min, it was asked below if that's an inverse H&S, possible or a diamond or just a coil
$SPX - Chart Link- 5 min view, last pullback bounced near the VWAP.
again depends on what you are trading: the indexes or stocks like Steve mentioned below.
Today the SPX bounced off the 200 day MA like I mentioned would likely occur last night.
Update: SPX 10 and 5 min
Posted by matt on 25th of Jun 2020 at 03:07 pm
$SPX - Chart Link - nice bust!
I'm calling that a coil, that's what it was and the pop was nice out of it which is typical of a coil
Update: Update: SPX 10 and 5 min
Posted by matt on 25th of Jun 2020 at 03:41 pm
$SPX - Chart Link - stalled at that symmetry target
Appreciate any feedback anyone has
Posted by ojc345 on 25th of Jun 2020 at 04:00 pm
Appreciate any feedback anyone has on trading SPX index options for the tax benefit. Any downsides / cautions with this approach?
yes they are just like
Posted by matt on 25th of Jun 2020 at 04:18 pm
yes they are just like SPY options but on average 9 - 10 times the price. For many folks they are too expensive but yes they are better over SPY if you can do them because of the 60/40 long term cap / short term cap tax rule.
Consider XSP as an alternative
Posted by jtsurfah on 26th of Jun 2020 at 12:38 am
Consider XSP as an alternative to SPX if size is an issue. Even 1 SPX option is a large chunk of notional value - XSP is 10x vs SPX at 100x. Same tax treatment.
Downside is that you don't get the extended markets with XSP that you do with SPX. But how many people even realize that SPX (and VIX) starts trading at 2am?
Thanks. I’m fine w SPX
Posted by ojc345 on 26th of Jun 2020 at 09:29 am
Thanks. I’m fine w SPX size; mainly want to understand if European settlement presents any issues. Don’t want to get taken to cleaners unexpectedly. XSP doesn’t show good volume yet...too new.
Good Morning - So SPX
Posted by arun on 26th of Jun 2020 at 04:58 am
Good Morning - So SPX and VIX options start trading from 2AM ?????
Thanks Matt. Is there a
Posted by ojc345 on 25th of Jun 2020 at 04:23 pm
Thanks Matt. Is there a situation where the European style exercise at expiration can be an issue? I assume one can just close out trades before expiration, whether you own or write the option?
also as I pointed out
Posted by matt on 25th of Jun 2020 at 04:08 pm
also as I pointed out yesterday, the 60 min cycle indicator went on a buy yesterday at the lows, and lately price has been respecting those cycles on the 60 min time frame, no changes there, no sell cycle yet. Price bounced around on that buy cycle for the last day and a 1/2
otherwise on the 60 min the MA ribbons are still bearishly stacked and starting to pinch, so it's one thing to monitor now on this bounce