The biggest benefits to trading XSP
The biggest benefits to trading $S&P 500 Mini-SPX(.XSP)$
1. The ability to sell or buy options around the clock outside of normal trading hours
2. The tax benefits. With $S&P 500(.SPX)$ or XSP The tax benefits could be significant. 60% of your profits are taxed as long term gains (15% or 20% depending on your income level), and the other 40% are taxed at short-term rates (same as your regular income tax. With $SPDR S&P 500 ETF Trust(SPY)$ , all profits will be taxed as your regular income.
3. Cash settlement and no assignment risk. you don’t have to close the option if it’s in the money because they will cash settle if it same-day expiry. If you are short a position, you have new assignment risk if it’s in the money.
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