What are the factors that have made SPY (SPDRs) so popular & widely traded ETF options?



Cant the same be achieved by trading SPX(index options)? Is there any difference with regards to transacting cost? Also what is meant by “numerous strategies can be formed using ETF options as they are physically settled”?

What are the factors that have made SPY (SPDRs) so popular & widely traded ETF options?
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2 Replies to “What are the factors that have made SPY (SPDRs) so popular & widely traded ETF options?”


  1. Simply because its the simplest and safest way to speculate on the moves of the S&P500 directly using only very little money. The other way of using futures is a lot riskier and buying S&P500 mutual funds give you no leverage at all.





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