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Raleigh Durham Open Stocks Futures FX Options Traders Meetup Message Board Trading Discussions › Don't get burned by the new "mini" SPY options

Don't get burned by the new "mini" SPY options

user 4198647
Raleigh, NC
Post #: 49
If there wasn't enough options out there on the ETFs such as SPY, look no further. We now have "mini" SPY options at each strike. The "mini" options have a multiplier of $10 instead of $100. Who needs this other than brokers to collect more trading fees, I'm not sure. To be fair, I can think of at least a couple uses:
1. finer grained position sizing
2. really cheap way to test trading systems with real money
However, who really wants to trade like $20 and pay a ~$1 commission?

I found out about this "the hard way" after I realized I somehow had selected a "mini" option. So my trade was an order of magnitude smaller than it should have been.

Now when you select one month, and one strike call option, on Interactive Brokers at least you get a full 8 different options you can trade! Now that's a lot of ways to make or lose money!!!
Don B.
Group Organizer
Cary, NC
Post #: 1,071
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