Replies to post #362133 on SPDR S&P 500 (SPY)

[deadjim]

Aren’t they kinda the same? How do you trade SPX directly other than maybe futures?

[Agoura Guy]

YOU JUST DON'T GET IT..... SPX OPTIONS CAN NOT BE EXERCISED, YOU ARE FULLY DEPENDENT UPON TRADING THE SPREAD. THE OPTIONS ARE SETTLED UPON EXPIRY.

THE BENEFIT OF DEEP IN THE MONEY OPTIONS IS THEY HAVE ALMOST ZERO PREMIUM, BUT ARE ILLIQUID. TRYING TO SELL ILLIQUID OPTIONS IS NO FUN, THE BOTS WILL SCREW YOU EVERY TIME!!!!!!!

WITH SPY OPTIONS, THEY CAN BE EXERCISED AT ANY TIME. I HELD JUNE $500 SPY PUTS IN AN ILLIQUID MARKET SO A DAY BEFORE EXPIRY I EXERCISED THEM CREATING A SHORT POSITION @$500. THE COUNTER PARTY TO MY PUTS WAS FORCED TO PAY ME $500 FOR SPY WHICH WAS TRADING IN THE $360'S!!!!!!!!

I THEN COVERED MY SPY SHORT POSITION IN THE HIGHLY LIQUID REGUALR MARKET MAKING 2.9X BAGGAR GAIN ON THAT TRADE.... EVEN THOUGH I HELD THOSE PUTS FOR 8 MONTHS THE WAIT WAS WELL WORTH IT!!!!!!

I ALWAYS LIKE TO HAVE THE ***OPTION*** OF TRADING SPREAD OR EXERCISING!!!!!!!!!

THE TRADING METHOD I USE WORKS WELL FOR ME!!!!!!!!