SPX/ES?SPY Newb Question - futures io
futures io futures trading



SPX/ES?SPY Newb Question


Discussion in Traders Hideout

Updated by JamesPowell
      Top Posters
    1. looks_one Quick Summary with 1 posts (0 thanks)
    2. looks_two AsymOlly with 1 posts (1 thanks)
    3. looks_3 Boomer34 with 1 posts (0 thanks)
    4. looks_4 JamesPowell with 1 posts (0 thanks)
    1. trending_up 901 views
    2. thumb_up 1 thanks given
    3. group 4 followers
    1. forum 3 replies
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Thread Tools Search this Thread
 

SPX/ES?SPY Newb Question

  #1 (permalink)
Kampala, Uganda
 
Experience: Intermediate
Platform: TOS
Broker: TOS
Trading: SPX
 
Boomer34's Avatar
 
Posts: 164 since Mar 2011
Thanks: 74 given, 56 received

SPX/ES?SPY Newb Question

So am beginning to do some index options trading...mainly on the SPX.

This got me thinking...if I want to chart and do basic technical analysis (hope to do market profile)...what symbol should I track and chart?

Thanks for any clarification...

Follow me on Twitter Reply With Quote

Can you help answer these questions
from other members on futures io?
Convert NinjaTrader NT7 indicator to Tradestation EasyLanguage and RADARSCREEN
Platforms and Indicators
Issue meeting order entry conditions
Elite Automated NinjaTrader Trading
Last 5 minutes Label
ThinkOrSwim
Moving average with Lag reduction
NinjaTrader
Linux?
ThinkOrSwim
 
 
  #3 (permalink)
Tokyo, Japan
 
Experience: Intermediate
Platform: S5
Broker: Stage5
Trading: Commodities
 
Posts: 38 since Dec 2015
Thanks: 12 given, 22 received



Boomer34 View Post
So am beginning to do some index options trading...mainly on the SPX.

This got me thinking...if I want to chart and do basic technical analysis (hope to do market profile)...what symbol should I track and chart?

Thanks for any clarification...

There are 2 contracts on the CME for S&P500, the SP and ES. The SP is $250 x the value of the S&P500 index while ES, the e-mini, is $50 x value of S&P500 index. Both contracts have options so unless you are swinging with the big boys the ES is plenty of leverage and plenty of opportunity to make money.

To answer your original question, you should use the chart for the symbol that corresponds to the underlying on which you are trading options. So if you trade options on the ES then use @ES (for continuous contract and depending on your platform the "@" maybe some other symbol). I have to say that it's important you understand the close of trading for futures options as they are not the same a equity options.

From the CME website for ES american options contract (E-mini S&P 500 Options Contract Specs - CME Group). You can see the quarterly option closes trading on the open for quarterly expirations.
CME Globex (Electronic Platform) QUARTERLY: 8:30 a.m. / 3rd Friday of the contract month
SERIAL: 4:00 p.m. / 3rd Friday of the contract month

You can also trade options on SPY (S&P500 ETF) which acts like an equity option, 1 contract represents 100 shares of the ETF which is about 1/10 the value of the S&P500 index so 1 option on SPY is $10 x SPX notional value. The contracts trade weekly, monthly and leaps and they settle on Saturday which makes last trading US market close on Friday of expiration week.

Some brokers offer very low fees for equity option contracts so you can size your position to fit your account size without paying a fortune in transaction fees using the SPY option. If you are truly a beginner then that is where I would start.

Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to AsymOlly for this post:
 
  #4 (permalink)
conyers ga usa
 
 
Posts: 17 since Nov 2016
Thanks: 5 given, 17 received

Spy obviously tracks the spx and you can purchase options on both. Spy options are much more liquid therefore cheaper with much smaller spreads. Regarding charting it is a good idea to use the continuous spx chart along with the spy chart. The spy charts like a stock so there won't be any overnight data on it. Only extended hours data. So the continuous spx data fills in the blanks of the missing data on the spy.

Hopefully all that makes since.

Sent using the futures.io mobile app

Reply With Quote



futures io Trading Community Traders Hideout > SPX/ES?SPY Newb Question




Upcoming Webinars and Events
 

Free BloodHound Licenses to everyone!

June
 

Every journal equals ten meals for the hungry

June
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts