It was another profitable month for us at SPX Option Trader!  We ended the month of January with +244% ROI in our SPX weekly option trading, +194% ROI in our SPY weekly option trading and +112% ROM in our SPX Spread Trader. This past week however was a choppy week for us. We only traded 4 days due to the FOMC meeting. We ended this past week with -92% ROI in our SPX weekly option trading, -99% ROI in our SPY weekly option trading and -23% ROM in our SPX Spread Trader.

So, a good month in January, followed by a rough start to February. It is easy when a trader has a rough week, to lose sight of the bigger picture and focus only on the drawdown. However, when we have a rough week we pause and remind ourselves of our trading history. A drawdown like this week happens, but thankfully not very often. In fact, this is the largest weekly drawdown we’ve had in over a year for our SPX and SPY weekly trading. Obviously, we never enjoy such weeks, but they are a part of trading. Such a drawdown is to be expected and it is nothing for us to be concerned about.

After a few down trades, some traders are ready to change their strategy. However, we have found that to be the wrong course of action in our many years of trading. We started this service in 2016 and we’ve had large winning weeks and some down weeks. The key is to stay consistent in our approach and that is how we weather drawdowns and still take advantage when things are going well. We had a great December and a good January, now a few rough days. This is all a part of trading, nothing is ever guaranteed. However, as we stay consistent in our approach and continue to use the information provided in the SPX Daily Outlook each day we are successful in the long term. We got hit a bit this week, but we are confident that we’ll make it back and more in the weeks ahead! We look forward to an exciting month ahead, day trading SPX and SPY weekly options.  Below are our comments for each trading day of this week:

This content is for members only.