Finally someone on UA-cam who I actually believe knows how to trade😂 was getting sick of all the trading influencers who say they can trade, but not once have I heard any of them go into any detail like this. This I can actually relate to😁
this is not advanced stuff. anyone that has traded spx and spy knows that the bid ask difference is greater with SPX, but it is superior for the tax benefit and contract savings. if you buy 100 spy contracts you're paying 65 dollars. you would only have to buy 10 spx contracts at 6.5 dollars.
@@kb93_ there is no losses buddy; you just lose the premium that you pay but the gains are bigger; umar ashraf is lying here; he definitly does spx to make money on the side but uses spy to show us his skills
Hey Umar is one hell of an options trader and he’s transparent. One of the best scalpers/ options trader I know. Yes I agree with a lot of people here I like spx better too because a .40 cent con and easily turn into a 300%Plus gain. If I can trade spy like Umar I would.
Precisely why I trade SPY options over SPX & even Qs. I do trade closer to 0 or 1 DTE tho. With my specific range & trigger points once I know the market temps for the day. Love SPY options w/ no overnights normalcy
I had times with 500% return with spx just on scalping less than 10 minutes. He is right. Spx is very volatile and can make or break your account. But if you spend enough time to master it, you’ll get insane returns. If your goal is to go a lot faster spx is the way. I would not recommend it for big account sizes. Plus for a smaller account spx settles immediately like a cash settlement after you close your position. It also has more tax benefits for traders. It is very very hard though so be careful.
@@samricherSo, (correct me if I’m wrong) SPX is basically the futures version of SPY right? And you are saying your trade settles immediately? So let’s say you have $1000 you can do a $1000 trade, and say you profit $200…. You can immediately go right back in a minute later with $1200 and say you profit another $200…. Then you can go right back with $1400…. And keep doing this all day if you want? No PTD and you can keep going back in with the same money as much as you want? (And of course I know it’s unlikely to go in minute after minute and keep profiting, but just using it as an example)
Same - if you get good timing you're good. But if it goes against you and you're using a normal size, the loss grows rapidly. If I trade SPX I def size way down.
Try “out of the money” if you do reversals. That changed everything for me. Even just a little bit out of the money (5 points) is not going to reck you like at the money strikes when market goes against you and you can cut it fast. Plus out of the money is cheaper so you can invest more size into it.
Entirely agree. However in my experience, trading options on SPX should not be your only way to trade SPX. A lot of equities traders forget that you can trade shares which to me alleviate most of the stress that come with options
I’m starting not to like trading other tickers I guess since when I started trading SPY options I was using the 1 min (which was a nightmare) but I use the 5 now which make it easier and less of a headache
Lol liquidity isn’t a problem with spx either. If you’re trading spx just do spreads instead of pure directional. And what you’re talking about is probably gamma risk so you’re doing 0DTE, so again do spreads. It’s 10x the notional value of spy. And is cash setttled, no pin risk. No pin risk is enough for me to rather trade spx over spy
Ah bro I've seen that bid ask bs, was 3.40 3.50 and then boom boom boom quick sell off and it's like .25 3.25 😂 and then the worst part is you put an order for .30 boom ai puts .35 I swear bro they're playing with me bro sometimes too ill want to buy an option bid ask like 3.40 3.75 I'll put an order 3.60 then minutes later I'll bump it to 3.70 then the ask is 4$ lmao so I drop it to 3.5 the market maker puts 3.75 I'll put 3.6 again he'll f'n jump from 3.65 to 3.75 to 3.65 to 4$ in like 20 seconds tryna catch me like I'm some type of piece of meat.
theta gang Credit spreads on SPX bro. That 0dte time decay is incredible after 2pm. 3pm it's a wrap the price has to move so much against you because of theta/time decay
@@isk2829yes, plus, if you’re trading options, SPX is European style, meaning you cannot be assigned. They always expire worthless. On SPY you can be exercised/assigned shares. There are no shares in SPX. No risk of assignment. Big benefit.
Yeah but when I trade spy and get a good run I get 300%-900%. But when I get a good run with spx I get 3000%-9000%. Same move just the pricing difference
@@hansero7244If you are a scalper and have a small account it is very useful. You can get higher returns 70-200% returns and your losses are 20-40% on the money you put if you know what you are doing. Basically you risk a dollar amount each trade and you can grow much faster. The trick is to trade after the first two hours when options are getting cheaper and you can buy more options with less money. You trade the chart using spx. Well if you have 10-20k account size risking 0.5 or 1% you are also gambling. Gambling your time. It will go nowhere
Who chooses the bid ask spread citadel? because bruh, that shit is 100% ai don't come tell me oh supply and demand when as soon as I'm bout to buy the option (not talking about spy) I'll buy an option and then the option price puts me in the negative or ill sell a covered call... f'it not tryna type this s... out
Sorry, but no, you are talking nonsense. SPX option market is much deeper and has tremendous liqudiity and thus good spreads. Also great tradeability in off hours. Ia just the underlying is like 10x SPY.. i hope youve noticed...
i trade spx ONLY, your point is non sense, if you do limit order, what ever your trade size is, you will get filled, i witnessed 1000+ contracts filled in a minute, and the candle didn't even moves, sure it's limit order. this is regarding liquidity. about your other point about the losses. yeah that's correct, it losess its value too much, but it's two ways street man! (if you were right on the timing) you will profited much more trading spx than spy. almost the double. if spy moves 5x , spx could do 10x . all 0dte
Exactly , only person I’ve seen that understands this, technically spy and spx are exactly the same just 10x, people don’t like to trade spx bc they simply don’t know how to handle it
Finally someone on UA-cam who I actually believe knows how to trade😂 was getting sick of all the trading influencers who say they can trade, but not once have I heard any of them go into any detail like this. This I can actually relate to😁
this is not advanced stuff. anyone that has traded spx and spy knows that the bid ask difference is greater with SPX, but it is superior for the tax benefit and contract savings. if you buy 100 spy contracts you're paying 65 dollars. you would only have to buy 10 spx contracts at 6.5 dollars.
Spx is better though because of the 60/40 tax rule.
yea this kid is flat wrong.
Wtf if 40/60 tax rule ?
@@TARANS012 60% long term 40% short term.
The fact that more people are not saying this shows how few people here are making money
@@MooseMeusthat kid makes more than u on any given day
Bro manspreading wider than spx 😂 love ur vids..subscribed!
😂 So much for disliking wide spreads
I prefer spx more. Bigger gains if done right
And losses that most are unwilling to accept if not done right. Spy is a great place to practice RM and execution.
@@kb93_ wrong. wrong. wrong.
@@MooseMeus enjoy gambling :)
@@kb93_ there is no losses buddy; you just lose the premium that you pay but the gains are bigger; umar ashraf is lying here; he definitly does spx to make money on the side but uses spy to show us his skills
Hey Umar is one hell of an options trader and he’s transparent. One of the best scalpers/ options trader I know. Yes I agree with a lot of people here I like spx better too because a .40 cent con and easily turn into a 300%Plus gain. If I can trade spy like Umar I would.
Precisely why I trade SPY options over SPX & even Qs. I do trade closer to 0 or 1 DTE tho. With my specific range & trigger points once I know the market temps for the day. Love SPY options w/ no overnights normalcy
I prefer spx tbh. The risk to reward is there and I want to get paid for my risks even if it goes to negative and back 300%
Over here trying to wipe my screen🤦♂️😂
This is true but there's nothing like timing up that squeeze and watching your spx go to 1k%.
I had times with 500% return with spx just on scalping less than 10 minutes. He is right. Spx is very volatile and can make or break your account. But if you spend enough time to master it, you’ll get insane returns. If your goal is to go a lot faster spx is the way. I would not recommend it for big account sizes. Plus for a smaller account spx settles immediately like a cash settlement after you close your position. It also has more tax benefits for traders. It is very very hard though so be careful.
@@samricherSo, (correct me if I’m wrong) SPX is basically the futures version of SPY right? And you are saying your trade settles immediately? So let’s say you have $1000 you can do a $1000 trade, and say you profit $200…. You can immediately go right back in a minute later with $1200 and say you profit another $200…. Then you can go right back with $1400…. And keep doing this all day if you want? No PTD and you can keep going back in with the same money as much as you want? (And of course I know it’s unlikely to go in minute after minute and keep profiting, but just using it as an example)
This has been true from my personal experience
Same
Same I hate huge bid ask spreads butttttt like he said when it’s in your favor….. 🎉 but I need a tight window
Same - if you get good timing you're good.
But if it goes against you and you're using a normal size, the loss grows rapidly.
If I trade SPX I def size way down.
Try “out of the money” if you do reversals. That changed everything for me. Even just a little bit out of the money (5 points) is not going to reck you like at the money strikes when market goes against you and you can cut it fast. Plus out of the money is cheaper so you can invest more size into it.
I 100% stand by my comment.
I size down from normal position size for prudent risk management.
@@usernamenf Awesome! whatever works for you man.
as a trader, this is facts that happened to me on the market open one time. I blew my 200 dollar account, lmao I lerned that day .
Trading SPX on a $200 account is insane
@@JHossATX bro tryna hit Lotto
If you are trading SPX you better off doing ES futures. Spreads are tight and no Greeks
Spx is good for scalpers only. For day trading it will always gonna be a loss because of time decay
What would you say a good range is for scalps on SPX? About $10?
Gains and losses are more with Spx for sure but the spread is $5-10 not sure what u talking about my guy
I agree w this 100%
Entirely agree. However in my experience, trading options on SPX should not be your only way to trade SPX. A lot of equities traders forget that you can trade shares which to me alleviate most of the stress that come with options
Very true. This has blown up 3 of my accounts.
SPX is far better. It’s the same trade 10x and you pay less in commissions and the tax benefits are better!!
That’s why u size for zero when trading spx. Have your stops but make sure you’re size in is a size u don’t mind loosing.
Index trading is the holy grail imo
True that!
very very true
I’m starting not to like trading other tickers
I guess since when I started trading SPY options I was using the 1 min (which was a nightmare) but I use the 5 now which make it easier and less of a headache
That’s what stop losses are for!
Lol liquidity isn’t a problem with spx either. If you’re trading spx just do spreads instead of pure directional.
And what you’re talking about is probably gamma risk so you’re doing 0DTE, so again do spreads.
It’s 10x the notional value of spy. And is cash setttled, no pin risk.
No pin risk is enough for me to rather trade spx over spy
Interested in learning more about spreads. Can you give me an example of one of your strategies?
Ah bro I've seen that bid ask bs, was 3.40 3.50 and then boom boom boom quick sell off and it's like .25 3.25 😂 and then the worst part is you put an order for .30 boom ai puts .35 I swear bro they're playing with me bro sometimes too ill want to buy an option bid ask like 3.40 3.75 I'll put an order 3.60 then minutes later I'll bump it to 3.70 then the ask is 4$ lmao so I drop it to 3.5 the market maker puts 3.75 I'll put 3.6 again he'll f'n jump from 3.65 to 3.75 to 3.65 to 4$ in like 20 seconds tryna catch me like I'm some type of piece of meat.
theta gang Credit spreads on SPX bro. That 0dte time decay is incredible after 2pm. 3pm it's a wrap the price has to move so much against you because of theta/time decay
$0.02-$0.03 spread on SPY is equivalent to $0.20-.30 spread on SPX. Are SPX spreads actually worse? Plus tax and assignment benefits of SPX.
True, but one thing to consider. SPY profits are subject to capital gains tax. SPX is under a different, lower tax.
so spx is better in the long run since its taxed less?
@@isk2829yes, plus, if you’re trading options, SPX is European style, meaning you cannot be assigned. They always expire worthless. On SPY you can be exercised/assigned shares. There are no shares in SPX. No risk of assignment. Big benefit.
Absolutely right about those wide spread options. When LULU went S&P … that’s what kept me from going in at all!
True that
Assignment after hours risk sucks on SPY.
Trading ANYTHING that has low liquidity is a recipe for disaster
Pls someone link me the whole podcast of this clip
He is talking to himself it’s not a podcast
Why not use stop losses to close the spread so that you don’t lose so much.
He does trade Spx himself
😂😂😂
Hello sir if you teach by any chance how can I join your coaching or course to acquire skills in trading
Yeah but when I trade spy and get a good run I get 300%-900%. But when I get a good run with spx I get 3000%-9000%. Same move just the pricing difference
But when it moves in your favor tho. The sheer amount of excitement that runs thru your veins is insane.
It's called gambling forget calculated risk, if your betting your whole acct on a single trade. Good luck playing SPX.
@@hansero7244If you are a scalper and have a small account it is very useful. You can get higher returns 70-200% returns and your losses are 20-40% on the money you put if you know what you are doing. Basically you risk a dollar amount each trade and you can grow much faster. The trick is to trade after the first two hours when options are getting cheaper and you can buy more options with less money. You trade the chart using spx. Well if you have 10-20k account size risking 0.5 or 1% you are also gambling. Gambling your time. It will go nowhere
those pants are short squeezing the volatile spx
That’s why you use limit orders
Options are horrible lol. It's like dislocating your knee in a marathon
Yeah maybe because you don't know how to trade them.
Who chooses the bid ask spread citadel? because bruh, that shit is 100% ai don't come tell me oh supply and demand when as soon as I'm bout to buy the option (not talking about spy) I'll buy an option and then the option price puts me in the negative or ill sell a covered call... f'it not tryna type this s... out
I am missing a whole lot of detail up until this point. I can't understand the statement in its fullest
I’ve made a lot trading spx options but I definitely have lost a lot and quick😂 last week I made my first big profit on SPX turned 2k into 11k🥶💰
Gambling addict🥶
@@srinivasavaradhan4231 jealousy
@@srinivasavaradhan4231 trading isn’t gambling in my opinion, you can manage your losses and make an educated guess of where the price will go
@@GroovyGangTrades that’s literally gambling. It’s okay to call it that. It is what it is.
@@jakebaldwin7172 i only see digits. Doesn't mean much
Sorry, but no, you are talking nonsense.
SPX option market is much deeper and has tremendous liqudiity and thus good spreads. Also great tradeability in off hours.
Ia just the underlying is like 10x SPY.. i hope youve noticed...
Stop pretending like you are talk to someone
We know it’s just a fake podcast to make you seem like you saying something important
🎉
Sir. I have questions
Why not trade XSP?
Look at the spread and open interest.
Facts
i trade spx ONLY, your point is non sense, if you do limit order, what ever your trade size is, you will get filled, i witnessed 1000+ contracts filled in a minute, and the candle didn't even moves, sure it's limit order. this is regarding liquidity. about your other point about the losses. yeah that's correct, it losess its value too much, but it's two ways street man! (if you were right on the timing) you will profited much more trading spx than spy. almost the double. if spy moves 5x , spx could do 10x . all 0dte
Sir I have questions
Oh yh spx spread is nasty it’s good otde but honestly ain’t all that
I don’t touch wide spreads baba has roasted me AI was a nasty one
Spx is perfect when you trade through a cfd spread tends to be a minimum
This is a bad take bc percentage wise the spreads are just as tight on SPX as they are on SPY
Exactly , only person I’ve seen that understands this, technically spy and spx are exactly the same just 10x, people don’t like to trade spx bc they simply don’t know how to handle it
Nah he's not talking about it just being 10x spy. They get wonky af, especially when it's moving fast.
he trades on a very small time frame....to his trading strategy it's bad.
@@brandonramos8219 he’s specifically talking about options market liquidity. The spreads are not equal in a fast moving market.
I don’t get why people trade options anyway😂, just trade shares alrdy dammit
Making big bank with options.
Yup got murdered today
I just wanna know who ur talking to 😂
Bro pls pin the whole link of this podcast
He’s interviewing himself.
@@darthtrader7605 is that really true ?
this is true
Bro wearing leggings
And you judge people on the internet, nobody's perfect, so what's your point?
SPX “options” 😂
?
SPX does have index options
@@flippatheshippa OP exposed his own ignorance.
This time you talk BS , big BS