Shorting SPY for fun and profit. Message Board

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Strategies & Market Trends : Shorting SPY for fun and profit.

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To: Esteban who wrote (51)	11/8/1997 2:02:00 PM
From: Pancho Villa	of 346

>>From a short term trading perspective, how are these administration costs levied, say on a day trader who holds SPY for an hour or so, or a short term trader who holds for a week or so?<< Just guessing, your impact would be at most at a rate ot .18%/year which is neglegible compared to what you loose in the spread. Suppose (for an approximation) that the admin chrage is taken from the dividing yield. The effect of this is that SPY's would probably trade at a tiny discount compared to the index. Just guessing here as I plan to use spiders when I start taking it easier. In about two years time I will stop putting 60 hours + into this and turn on the automatic pilot (.e., spiders along with some long term stock holdings). Pancho

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