Cultist6661 t1_iug0iul wrote on October 31, 2022 at 1:07 AM

Why do so many ppl option SPY and SPX and all these weird indexes? It’s way easier to hit on individual stocks.

Or at least pick a sector and pick a few companies from that sector and just do your play like that.

Desert_Haze_ t1_iugt30b wrote on October 31, 2022 at 5:32 AM

For judging the strength and weakness of individual stocks, you have to look at indexes and how they are doing. Otherwise you are just blindly trading. If you have to look at indexes anyway, it's easier to trade 0dtes of them which are highly liquid. And indexes move fast as well and the option premiums move fast. So, for daytrading these index options are very good.

Cultist6661 t1_iuhag7d wrote on October 31, 2022 at 9:56 AM

Good point I was just kinda tryin to say u can make ur own index.

jesse950 t1_iuizew0 wrote on October 31, 2022 at 6:09 PM

From what I can see most of the individual stocks I follow mirror the movements of Spy anyway but with greater volatility. Options liquidity can also be an issue. So if you're trading more than a handful of options you could face order fill issues.