This is the main aspect of our service, and everything flows from it. We focus on trading SPX and SPY options on the day of expiration. These options are also called zero day expiration options or 0DTE options. We are seeking to profit from intraday movement in the stock market. The fastest and most reliable method of viewing this information is always directly on our website. However we also send it out via email to those who request it. There are 2 main sections of the Daily Outlook, The Market Forecast and the Trading Strategy.

The first section is our market forecast. We provide specific price targets for the close and either the highs or the lows of the day for the SPX and SPY. The Daily Target is the price we forecast the market will close above our below, the price targets are those support/resistance levels that we will be watching during the day. This allows you to be armed with the information you need in your day trading.

The second section is our Trading Strategy. This is where we share the specific option and price that we are planning to trade. We provide not only the specifics on the option, but entry limits and initial stop loss and profit targets. When it comes to actually entering and exiting the trade, each member must choose these for themselves. Each Trader must choose their entry and exits based upon their own risk tolerance and analysis of the market. We provide detailed guidelines on our website to share what we are looking for in both entries and exits. We post updates on our website after we enter and exit the trades.

Some traders seek to mirror our trades, others use this information to trade according to their own parameters. How you use this valuable information is up to you, as each trader has different goals and risk tolerances. But having this information each morning will certainly prove invaluable to your day trading, as it has been to ours.

How Does the SPX Daily Outlook Work?

Let’s look at an example, this was our SPX Daily Outlook on 02/20/2020:

SPX Daily Outlook 02/20/2020
SPX Market Forecast

Close of the day for SPX should be below 3381
1st Target low 3371
2nd Target low 3364
3rd Target low 3357
These are the key levels we will be watching in our trading today.

SPX Trading Strategy

We plan to Buy to Open .SPX200221P3375 (SPX Monthly Option: put, Strike: 3375 Expiration: 02/21/20) at limit price of 8 *please note trading guidelines below.
We will be looking for about a 90% profit and using about a 75% stop along with using our target price levels. Please see our website www.spxoptiontrader.com for further information on our trading guidelines.

SPY Market Forecast

Close of the day for SPY should be below 338
1st Target low 337.25
2nd Target low 336.5
3rd Target low 335.75

So, let’s walk through a real day and see how a trader can use our service. Within minutes of the open you have access to our SPX Daily Outlook directly on our website, by email and by text msg and consequently you are ready for the day. As it nears 9:35 a.m. EST you notice the Option contract is trading below the limit, so you enter at 5.26. The SPX rallies a bit, going in the opposite direction, but never hits the initial stop loss % shared in the Daily Outlook of -75% so you hold your position. Then the dramatic sell off begins just after 10:40 a.m. In less than an hour you watch as the market quickly drops through all 3 target levels. Using the guidelines provided on our website, once the SPX breaks the 3rd target level, you are watching for a reversal. As the market starts to bounce off the low, you decide to exit your position at 30.23 to lock in a nice profit of +475%! Because you used our service, you made +475% ROI in one day trade. Our SPX Daily Outlook helped you to not get shaken out by all the other noise in the market. This is just one example of how you might be able to use our service in your own trading. For more examples please see our SPX Trader’s Blog entries where we discuss each and every trade. You may also find this article helpful.

Unlimited Growth Potential

To help illustrate how powerful this strategy is, let’s use some hypothetical numbers. Let’s assume a trader starts with $70,000 in his account. This trader is comfortable with risk and decides to risk trading $3,000 lot size each day. While the number of contracts will vary each day, this trader attempts to purchase as close to the same dollar amount of contracts each day.

By trading $3,000 each day, at the end of a month with a 480% average monthly return this trader would see about $14,400 in profit (depending upon commissions and slippage). That means the total account grew from $70,000 to $84,400 in just one month. That is just over a +20% increase in the total account in just one month! Now, if this trader stayed consistent in the lot size for an entire year, it would result in approximately $173,000 in profit by the end of the year. This means the total account grew from $70,000 to over $242,000 in just one year, that is nearly 250% annual return on the entire account!

Of course, there are never any guarantees of future performance. Trading options is risky and there could be severe drawdowns during any time period, as we have seen in the past. We’ve had multiple losing days in a row and even losing months. In fact, there is always the possibility that the account will lose money at the end of the year. A trader must have the stomach for such drawdowns and never trade more than you can afford to lose.

But based upon the historical averages, you can begin to see the potential power of this approach over the long term. Now, not every trade is profitable, and past performance is never a guarantee of future results. We have drawdowns and losing trades, even losing months can be a part of trading. But the potential rewards are astounding.

Do You Offer a Trial?

Try us now for a free 7 day trial. For 7 days you will gain full access to our service, to see if it is right for you. Be sure and read through the many articles on our website to learn more about our service.