We focus on day trading SPX and SPY weekly options on expiration day (0DTE options) using this strategy. Each day we actually follow the same entry guidelines as outlined in our Daily Outlook. But after we enter the trade, it is managed very differently—allowing for more movement throughout the day, often holding positions for hours instead of minutes. While this approach involves greater risk, it also offers the potential for higher rewards by capitalizing on the significant price movements we often see.
Each day, we provide insights for trading SPX or SPY 0DTE options, and you can review our past performance. This aggressive strategy is best suited for traders comfortable with larger and prolonged drawdowns. If that aligns with your personality and financial goals, it may be a good fit for you. We utilize wider stop losses compared to our other strategies, which allows us to capture larger gains during price runs.
Our unique approach blends precise daily forecasts for SPX with effective trade management. We usually set our initial stop loss between 50% and 80%, making adjustments throughout the day to optimize profits. Members receive timely updates in our trading room, including essential details for entering aggressive trades shortly after the market opens, initial stop prices, and ongoing adjustments. You’re never alone in your trading journey; we share our insights and strategies throughout the day.
While we strive for accuracy in our forecasts, it’s important to note that losing trades are a part of the process, and options trading carries significant risks that may not be suitable for everyone. We encourage you to do your own research and fully understand the risks involved. For those prepared to navigate this market, our proven approach offers valuable insights every day of the week.
How does this differ from the Daily Outlook trades?
This approach is basically a different exit strategy to the same trades we do in our Daily Outlook. This strategy uses larger stop loss and seeks to hold longer during the day for larger potential profits.
Now to be clear, this is a higher risk, and higher potential reward approach. This aggressive approach does better on some days than our Daily Outlook trades, and other days not as well. For example on 4/27/23 we made +6% in our Daily Outlook Trading, but with the Aggressive Trader we had a +663% gain. Conversely on 4/6/23 we had +8% in our Daily Outlook Trading but a -80% loss in the Aggressive Trader. Those two days give a good picture of the type of variance that one can experience with this strategy. This approach is not for everyone, but if you are comfortable with greater risk, this may be just what you are looking for.
Which should I trade SPX or SPY?
Please see this article for a full discussion on SPX vs SPY options. For the Aggressive Trader the overall performance returns are about the same for SPX and SPY. This strategy is suitable for both cash and margin accounts. It’s essential for traders to fully understand the risks associated with options trading and to have a sufficiently funded account for a stress-free trading experience.
How does the Aggressive Trader work?
We share our daily trading activities in our Live Trading Room on our website. Each day, members log in to see our updates in real time. We notify you before entering a trade, and once we do, we provide the initial stop loss price for the SPX option we’re monitoring. This stop level also guides our exit strategy for SPY option positions. Throughout the day, we adjust the stop level to optimize our profits, and we update this information in the trading room. For those who prefer, we also send these updates via email. Here’s an example of what a typical day’s updates look like:
SPX Aggressive Trader 06/20/2023
SPX Trading
We plan to Buy to Open .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023) at limit price of 9.80 *please note trading guidelines.
SPY Trading
We plan to Buy to Open .SPY230620P437 (SPY monthly option: PUT, Strike: 437 Expiration: 06/20/2023) at limit price of 1.30 *please note trading guidelines
——— TRADE UPDATE ———
SPX
We purchased .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023) at a price of 4.50
SPY
We purchased SPY230620P437 (SPY monthly option: PUT, Strike: 437 Expiration: 06/20/2023) at a price of .56
——— TRADE UPDATE ———
If .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023), comes down to .90 we will likely exit both SPX and SPY option positions.
——— TRADE UPDATE ———
If .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023) , comes down to 4.50 we will likely exit both SPX and SPY option positions.
——— TRADE UPDATE ———
If .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023) , comes down to 9.00 we will likely exit both SPX and SPY option positions.
——— TRADE UPDATE ———
If .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023), comes down to 13.50 we will likely exit both SPX and SPY option positions.
——— TRADE UPDATE ———
If .SPXW230620P4385 (SPX monthly option: PUT, Strike: 4385 Expiration: 06/20/2023), comes down to 17.80 we will likely exit both SPX and SPY option positions.
——— TRADE UPDATE ———
SPX
We exited our SPX Option at 17.70 for a profit of +293%
SPY
We exited our SPY Option at 1.95 for a profit of 248%
You will notice that we posted our trading plan first. Then we updated after we entered, along with when we changed the stop prices. We closed out this trade with a nice profit of a +293% return for SPX trade and +248% return for SPY trade. Now not every trade is that profitable, and we do have losers. But this is a good example of the information we share. If this looks like information that you would find helpful in your trading, then we invite you to Sign Up Today for a free trial.
Each Trader must determine entry and exit based on their own risk tolerance. The Stock market can move very fast, each trade is a risk. Please, never trade more than you can afford to lose. Make sure you understand fully what options are and how to trade them before seeking to use our information. We are simply sharing what we are doing, you are responsible for how you use our information.
Is This Easy to Follow?
We believe our system is straightforward and easy to follow. Simply log into our trading room to watch in real time as we announce our trade entries and exits, including the entry limit and stop loss for each trade. Our trading room also provides audio alerts whenever new information is posted.
As an individual trader, you have the flexibility to choose your own entry and exit points. We share our strategies, and it’s up to you how you incorporate that information into your own trading approach. Whether you choose to mirror our trades or develop your own strategy based on our insights, you’ll have access to our updates every trading day of the week.
Can I combine Daily Outlook and Aggressive Trader?
Absolutely! That is exactly how we trade this strategy ourselves. We enter the trade per our Daily Outlook guidelines, then we exit a portion of our total shares using the Daily Outlook Guidelines. That performance is posted in the Daily Outlook. The remainder of our shares is then exited per our Aggressive guidelines. This performance is posted in the Aggressive Trader. This is why the entry price is always the same for both strategies in our past performance records.
While we trade both SPX and SPY using Daily Outlook and Aggressive strategies, most traders may prefer to focus on one. Depending on your risk tolerance and account balance, you can choose to concentrate on either SPX or SPY, and then decide between the Daily Outlook exit strategy or the Aggressive exit strategy.
You can also mix the two approaches: for example, you might exit half your position using one strategy and the other half with a different one, or allocate 60% of your position to one strategy and 40% to the other. The combinations are virtually limitless, allowing you to tailor your strategy to fit your individual risk tolerance and financial goals.
Do you Offer a Trial?
We offer a free 7 day trial to all our services at SPX Option Trader. You can have 7 calendar days to see for yourself, what makes our service unique. You will have full access to all our strategies. So try us free for 7 days and see if what we are doing can benefit you as you trade the market.
