SPY versus SPLG

Initially when I chose SPLG as the instrument of choice it was because the share price is only in the $70s, and I felt it would be easy to manage. Some of the observations I am noticing however will make me consider SPY as the option rather than SPLG.

• SPLG has only one expiry per month, and not all months are available in a consistent sequence. For example, It’s October right now, and the options are expiring, but there are no February (4 months ahead) option available. Only March.
• In the spots where I am using 8x a certain option, this could be 1x of SPY. For example, 8x Jan16th $75 SPLG PUT options at 0.33▲ represents about $60,000 worth of SPLG stock. The premium might generate $1,466 of premium, and have a Buying Power Effect of $7264 and 36.6% ITM probability.
• If I compare that to 1 of Jan16th SPY $630 PUT option, it is a 0.30▲ and represents about $63,000 in SPY stock. The premium generated would be $1,468 (almost identical) and the buying power effect is $6,952, and it’s 33.6% ITM. 
• After comparing those, the advantage leans to doing 1 SPY contract because the premium generation is the same, but the ITM probability is a small amount better, as is the buying power effect.
• Advantage SPY 1 contract commission with SPY versus 8 with SPLG.
• Disadvantage SPY – when I have a lower confidence position, as in those closer to the money, I can’t do a half contract like 4 of the SPLG contracts would be worth.
• Advantage SPY – There are two expiries per month in EVERY month ahead for 5 months. When the expiry cycle is less than 50 days, there’s an expiry every week. And in the short term timeframe, there’s an expiry every day for 15 days ahead. This gives a huge level of flexibility on options that are expiring, and are close, and maybe we just want to roll one week prior to sending it out to the end of the timeline.

Having considered all of this, I think I will look at considering reducing my overall exposure, and look at selling less contracts, but using SPY rather than SPLG. For remaining contracts, unless there is an opportunity to swap them over without paying too much commissions, I think I will allow some of the future contracts just to play out, and some I will swap over.