Why I’m Trading E-Mini Futures Instead of SPY Options — And You Should Too

by | Apr 17, 2025

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Most traders I talk to are obsessed with SPY options — especially for day trades. I get it. It’s familiar, it’s liquid and it’s easy to access from any brokerage account. But lately, I’ve stopped trading SPY altogether and switched to E-mini S&P futures — and honestly, I’m never going back.

Here’s why.

Cleaner Charts, Simpler Math

SPY options have too much noise. The bid-ask spreads get wide, the greeks skew your outcome and there’s constant decay working against you. With E-minis, you’re trading the S&P 500 directly — not a derivative of a derivative. You know exactly where you are at all times. One point is $50 on the ES or $5 on the micro (MES), and that’s it.

The price movement is clean. If I buy at 5,355 and sell at 5,365, I know I made 10 points — $500 per contract. There’s no guessing, no wondering if volatility helped or hurt the trade. And best of all, there’s no decay. I don’t have to worry about theta bleeding my position if I hold it for a few extra hours.

Massive Tax Benefits and No Day Trading Rule

This part doesn’t get talked about enough. Futures are taxed under the 60/40 rule — meaning 60% of your gains are treated as long term, even if you only held the position for five minutes. That’s a huge win compared to the 100% short-term tax hit on options trades.

And since you’re not trading equities, the pattern day trading rule doesn’t apply. That means no worrying about crossing the three-trade limit if your account is under $25,000. You can scale in, scale out or round-trip trades all day long — no restrictions.

You also get 23-hour access and tighter margin requirements through futures brokers. I’ve had people switch to AMP Futures or NinjaTrader and say it completely changed their approach.

Look — I’m not here to promote futures. In fact, I legally can’t. But I can tell you that once I made the switch, I started trading cleaner, with more clarity and less stress. If you’ve been frustrated with inconsistent fills, weird options pricing or tax surprises, it might be time to give E-minis a serious look. Just don’t say I didn’t warn you when you never want to go back.

Roger Scott
Roger Scott Trading

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WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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