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Bill
Percentage wise the average daily change in the spiders is .74 points
and the S&P is .67 points. This is according to the August issue of
Futures magazine. Dollar wise the average daily change is $0.81 for the
spiders and $1750 for the S&P. On margin, the spiders can be bought on
50% margin and the S&P for a lot less depending on your broker and
account size. That's where the leverage is. And a daily point move of
$0.81 is hard to trade on a short term basis after you take out
commissions and the bid/ask spread. I guess I should have asked what
your time frame was and your goals. Depending on your goals the spiders
may be a good vehicle for you to trade.
John Manasco
Bill Saxon wrote:
>
> Thanks, John. I'm confused. Percentage wise would the move not be comparable?
> The price of the Spiders per share is a lot less than the S&P, perhaps a tenth.
>
> John Manasco wrote:
>
> > Bill
> >
> > The only problem I have with spiders is they aren't volatile. A 10 point
> > move in the S&P is only a one point move in the spiders. Even if you buy
> > on margin you'll see they don't make big moves in a day. Ever consider
> > OEX options?
> >
> > John Manasco
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