Tag - index options

two puppies | the difference between SPX and SPY | Sheaff Brock

SPY and SPX—What’s the Diff and Does the Difference Matter?

In a rather cryptic and historical intro to the subject of options, Yahoo Finance states: “When it comes to the battle of SPY versus SPX, the first may have more volume, but the second has more value.” Size comparison: The SPDR S&P 500 (NYSE symbol SPY) is, in fact, the most widely traded contract on option exchanges. The SPX S&P 500 index options have far lower trading volume, but each contract is ten times the size of a SPY. Underlying security: Underlying the [...]

Process for Stock Options | Sheaff Brock

Selling Put Options: A Strategy for Those Who Want a Bit More

There are two main reasons, explain James Cordler and Michael Gross, writing in Futuresmag.com, for the popularity of option selling: investors’ ability to generate reliable income generally positive performance under varying market conditions However, the authors caution, there is no free lunch here, and option selling has its own set of risks. Two mistakes Cordler and Gross see investors make include: selling too many options relative to account size being too concentrated in a particular market sector Dave Gilreath, manager of [...]