| For investors and advisors looking to hedge market risk, generate a little extra income or boost growth, options on indexes are a great solution. But which instrument is the right one to use—index options or options on index ETFs? Since the S&P 500 Index (ticker SPX) is widely regarded as the leading benchmark of the overall U.S. stock market, let's look at options on SPX—an index—and those on the SPDR S&P 500 ETF, an ETF that tracks the index.
Options are uniquely flexible financial tools, so implementing investment strategies using either SPX options or those on SPY may allow you to tailor risk and reward better than if you did not use options at all...............................................Full Article: Source
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