blog

Which S&P 500 Stocks Are The Most Liquid?

Options Trading 101 - The Ultimate Beginners Guide To Options

Download The 12,000 Word Guide

Get It Now
As Seen On
by Gavin in Blog
May 14, 2022 0 comments

The S&P 500 index and its corresponding ETF — SPX and SPY respectively — are the most liquid underlyings that you can trade.

But does that mean that all individual equities that are members of the S&P 500 are liquid?

If you are just buying or selling the stock, then yes any of them would be liquid.

However, if you are trading options, then the option liquidity and the spread between the bid price and the ask price will be a factor.

The TastyWorks platform provides an options liquidity measure that ranks liquidity from one star to four stars with four stars being the most liquid.

Not all stocks in the S&P500 are liquid enough to ideally trade options with.

For example, Transdigm Group (TDG) has only one-star liquidity, which is not liquid enough for options trading.

Fortunately, there are 58 symbols that are part of the S&P 500 that has the most liquid rating of four stars. And 145 more that has three star rating.

Members of S&P 500 with Four Star Liquidity

 Symbol  Company  Sector
AAL American Airlines Industrials
AAPL Apple Technology
AMD Advance Micro Devices Technology
BAC Bank of Americal Financial
BMY Bristol-Myers Squibb Healthcare
C Citygroup Financial
CCL Carnival Corp Consumer Cyclical
CMCSA Comcast Communications
CSCO Cisco Technology
CVX Chevron Energy
DAL Delta Airlines Industrials
DIS Disney Communications
DISCA Discovery Communications
DISCK Discovery Communications
DOW Dow Inc Basic Materials
F Ford Motor Company Consumer Cyclical
FB Meta Platforms Communications
FCX Freeport-McMoRan Basic Materials
GILD Gilead Sciences Healthcare
GIS General Mills Consumer Defensive
GM General Motors Consumer Cyclical
HBAN Huntington Bancshares Financial
HPE Hewlett Packard Technology
INTC Intel Technology
JNJ Johnson & Johnson Healthcare
JPM JPMorgan Chase Financial
KMI Kimco Realty Real Estate
KO Coca-Cola Consumer Defensive
LUMN Lumen Technologies Communications
LVS Las Vegas Sands Consumer Cyclical
MO Altria Group Consumer Defensive
MPC Marathon Petroleum Energy
MRK Merck Healthcare
MRO Marathon Oil Energy
MS Morgan Stanley Financial
MSFT Microsoft Technology
MU Micron Technology Technology
NCLH Norwegian Cruise Line Consumer Cyclical
NEE NextEra Energy Utilities
NLSN Nielsen Holdings Industrials
NVDA NVIDIA Technology
ORCL Oracle Technology
OXY Occidental Petroleum Corp Energy
PARA Paramount Global Communications
PFE Pfizer Healthcare
PHM PulteGroup Consumer Cyclical
PYPL PayPal Financial
RF Regions Financial Financial
SBUX Starbucks Consumer Cyclical
SLB Schlumberger Energy
T AT&T Communications
TWTR Twitter Communications
UAL United Airlines Holdings Industrials
VMC Vulcan Materials Basic Materials
VZ Verizon Communications
WFC Wells Fargo Financial
WMT Walmart Consumer Defensive
XOM Exxon Mobil Energy

 

Members of S&P 500 with Three Star Liquidity

 Symbol  Company  Sector
ABBV AbbVie Healthcare
ABT Abbott Laboratories Healthcare
AEP American Electric Power Utilities
AES The AES Corp Utilities
AFL Aflac Financial
AIG American International Group Financial
ALK Alaska Air Industrials
AMAT Applied Materials Technology
AMGN Amgen Healthcare
AMT American Tower Real Estate
APA APA Corp Energy
ATVI Activision Communications
AXP American Express Financial
BBWI Bath & Body Works Consumer Cyclical
BBY Best Buy Consumer Cyclical
BEN Franklin Resources Financial
BKR Baker Hughes Company Energy
BLL Ball Corp Consumer Cyclical
BSX Boston Scientific Healthcare
BWA BorgWarner Consumer Cyclical
CAG Conagra Brands Consumer Defensive
CAH Cardinal Health Healthcare
CARR Carrier Global Industrials
CAT Caterpillar Industrials
CEG Constellation Energy Utilities
CERN Cerner Corp Healthcare
CFG Citizens Financial Financial
CHRW C.H. Robinson Worldwide Industrials
CMA Comerica Financial
CNP CenterPoint Energy Energy
COP ConocoPhillips Energy
COST Costco Consumer Defensive
CPB Campbell Soup Consumer Defensive
CRM Salesforce Technology
CSX CSX Corp Industrials
CTSH Cognizant Technology Technology
CTVA Corteva Basic Materials
CTXS Citrix Technology
CVS CVS Health Healthcare
D Dominion Energy Energy
DHI D.R. Horton Consumer Cyclical
DISH DISH network Communications
DRI Darden Restaurants Consumer Cyclical
DUK Duke Realty Corp Real Estate
DVN Devon Energy Energy
EBAY eBay Consumer Cyclical
ED Consolidated Edison Utilities
EXC Exelon Utilities
FANG Diamondback Energy Energy
FAST Fastenal Company Industrials
FDX Fedex Industrials
FE FirstEnergy Energy
FIS Fidelity Financial
FISV Fiserv Technology
FITB Fifth Third Bancorp Financial
GE General Electric Industrials
GLW Corning Incorporated Technology
HAL Halliburton Energy
HAS Hasbro Consumer Cyclical
HD Home Depot Consumer Cyclical
HLT Hilton Worldwide Consumer Cyclical
HOLX Hologic Healthcare
HON Honeywell Industrials
HPQ HP Inc Technology
HST Host Hotels Real Estate
HWM Howmet Aerospace Industrials
IBM International Business Machines Technology
ICE Intercontinental Exchange Financial
IP International Paper Consumer Cyclical
IRM Iron Mountain Real Estate
IVZ Invesco Financial
K Kellogg Company Consumer Defensive
KEY KeyCorp Financial
KHC Kraft Heinz Consumer Defensive
KIM Kimco Realty Real Estate
KMX CarMax Consumer Cyclical
KR Kroger Consumer Defensive
LIN Linde Basic Materials
LMT Lockheed Martin Industrials
LNC Lincoln National Financial
LOW Lowe’s Consumer Cyclical
LUV Southwest Airlines Industrials
LW Lamb Weston Holding Consumer Defensive
LYB LyondellBasell Basic Materials
LYV Live Nation Communications
MAS Masco Industrials
MCD McDonalds Consumer Cyclical
MDLZ Mondelez Consumer Defensive
MDT Medtronic Healthcare
MET MetLife Financial
MGM MGM Resorts Consumer Cyclical
MKC McCormick Consumer Defensive
MMM 3M Company Industrials
MOS Mosaic Company Basic Materials
MRNA Moderna Healthcare
NEM Newmont Basic Materials
NFLX Netflix Communications
NKE Nike Consumer Cyclical
NLOK NortonLifeLock Technology
NRG NRG Energy Energy
NWL Newell Brands Consumer Defensive
O Realty Income Corp Real Estate
OGN Organon Healthcare
PEAK Healthpeak Real Estate
PENN Penn National Gaming Consumer Cyclical
PEP PepsiCo Consumer Defensive
PG Procter & Gamble Consumer Defensive
PGR Progressive Financial
PM Philip Morris Consumer Defensive
PPL PPL Corp Utilities
PRU Prudential Financial
PVH PVH Corp Consumer Cyclical
PWR Quanta Services Industrials
QCOM QualComm Technology
RCL Royal Caribbean Cruises Consumer Cyclical
ROL Rollins Consumer Cyclical
RTX Raytheon Technology Industrials
SCHW Charles Schwab Financial
SPG Simon Property Group Real Estate
SWK Stanley Black & Decker Industrials
SYY Sysco Corp Consumer Defensive
TAP Molson Coors Beverage Consumer Defensive
TFC Truist Financial Financial
TGT Target Corp Consumer Defensive
TJX TJX Companies Consumer Cyclical
TPR Tapestry Consumer Cyclical
TSLA Tesla Consumer Cyclical
TSN Tyson Foods Consumer Defensive
TXN Texas Instruments Technology
UA Under Armour Consumer Cyclical
UAA Under Armour Consumer Cyclical
UNP Union Pacific Crop Industrials
UPS United Parcel Services Industrials
USB U.S. Bancorp Financial
V Visa Financial
VNO Vornado Realty Real Estate
VTR Ventas Real Estate
VTRS Viatris Healthcare
WBA Walgreens Healthcare
WDC Western Digital Technology
WMB The Williams Companies Energy
WRK WestRock Company Consumer Cyclical
WY Weyerhaeuser Company Real Estate
WYNN Wynn Resorts Consumer Cyclical
XEL Xcel Energy Utilities

 

Where are AMZN and GOOGL

Surprisingly, TastyWorks listed Amazon (AMZN) and Google (GOOGL) as having only two-star liquidity. I’m not sure what metric they used to calculate liquity. Perhaps AMZN and GOOGL are such high-priced stocks which makes their bid-ask spread a bit wide.

At the time of this writing, GOOGL is trading at $2300 and AMZN is at $3300 per share. This is before Amazon’s 20-to-1 stock split.

As far as I’m concerned, Amazon and Google are liquid enough to trade options on them. Just try to negotiate the trade a bit. Put in an order with a good price in your favor. Wait a few minutes, and if not filled, then start moving the price patiently until filled.

Note that the liquidity and composition of the stocks in the S&P 500 can change with time. So this list should not be taken as fixed in stone.

 

 

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

vol-trading-made-easy

Leave a Reply

Your email address will not be published.

Options Trading 101 - The Ultimate Beginners Guide To Options

Download The 12,000 Word Guide

Get It Now