The Aggressive Trader has averaged over 490% return per month!
We are day trading SPX and SPY weekly options on expiration day (0DTE options) with this strategy. This strategy is trading the same options we do in our Daily Outlook. We use the same entry guidelines on these trades as in our Daily Outlook. The only difference is how we manage the trade after entry. We give these trades much more room to move during the day, often holding for hours instead of minutes. While the risk is greater, the potential gain is also greater. This approach is seeking to take higher risks in order to maximize the larger runs we so often see occur in our option trades.
We provide information each day for trading either SPX or SPY weekly options. You can view the past performance of each here.
This is a highly aggressive approach that requires a trader to be able to handle larger and prolonged drawdowns. If that fits your personality and financial goals, then you may consider this approach. The higher risk comes in the fact that we use much larger stops than in our other strategy. The higher potential gain comes from that same fact, as we are most often able to ride the runs to further gains.
Our accuracy in forecasting the daily direction of the SPX combined with our own unique approach to managing the trade is what makes this strategy unique. We enter each trade with a set stop loss of normally about 80%. The stop is then adjusted as the day progresses, as we seek to maximize our profit. We share these trade updates and adjustments to the stop level throughout the day to our members.
We share all information with our members in our trading room. We post within minutes after the open the key information for entering the aggressive trade. Then we update once we enter the trade and share what our initial stop price will be. Throughout the day we share updates to our stop price, and then we post when we exit the trade. You will be able to follow along with us in real-time and see how we are trading each day.
Of course, we cannot guarantee that our forecast will be accurate everyday, nor that every trader will make money. Losing trades is a part of trading, and we do incur losing trades. Every trade is a risk, and options trading is extremely risky and are not suitable for every trader. Be sure you do you own research and are aware of all the risks before trading. But for those who are prepared to trade this market, we have an approach that has proven to be very successful and we’ll share with you what we are doing each day of the week.
What types of drawdowns and successful trades have you had?
We’ve posted our performance since December 1, 2022 on our site for you to view how this approach has worked. These trades were not shared publicly until the service went live for all members on July 10, 2023. You may view that performance here. Now, while the returns have been much larger than our Daily Outlook, please be aware that the drawdowns have also been larger. We can have several down trades in a row, even down weeks and months. This is a highly speculative approach, which requires a trader to withstand severe swings in one’s account balance. The average losing trade is about -54%, while the average winning trade is about +97%. We’ve had a 51% winning trade ratio since December of 2022. Now of course, past performance is never a guarantee of future results. We could enjoy much greater success or endure worse drawdowns in the future. But our past performance provides a snapshot of what we’ve experienced and the types of profits and drawdowns that are possible going forward. So far our best month has been a return of nearly +1500% and our worst month a loss of just over -450%.
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.
How does the Aggressive Trader work?
We communicate our day’s trading activity in our Live Trading Room on our website. Each day our members login to our website and can read everything we are doing. We share when we are about to enter a trade. Then once we enter the trade we share the initial stop loss price in the SPX option that we are watching. We use this level in our SPX option position to trigger exits on SPY option position also. Our basic approach is to adjust this stop level throughout the day as we seek to maximize the run. As we adjust our stop level, we post that information in our trading room. This information is also sent out via email to all members who choose to receive it in that manner. Here is an example of what a typical day’s information looks 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 this is very easy to follow. You simply login into our trading room and watch in real time as we share when we are entering the trade and when we are exiting the trade. We share the limit we are entering and the stop limit we have for exit. Our Trading room sounds an audio alert whenever new information is posted. Past performance is never a guarantee of future results. But just imagine, if you could average over 490% per month!
Individual traders can certainly choose a different exit or entry than we do. We share what we are doing, and it is up to you how you will use our information in your own trading. You may seek to mirror our trades, or base your own strategy upon what we are doing. But whatever your choice, you will see what we are doing each trading day of the week.
Unlimited Growth Potential
To help illustrate how powerful this strategy is, let’s use some hypothetical numbers. Let’s assume a trader starts with $30,000 in his account. This trader is comfortable with risk and decides to risk trading $1,000 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. With this size account, a trader could not trade the SPX as the options are too expensive most days. The minimum lot size for trading SPX options on a consistent basis would be about $3,000. So, for our example we will focus on the SPY Aggressive Trader.
By trading $1,000 each day, at the end of a month with a 490% average monthly return this trader would see about $4,900 in profit (depending upon commissions and slippage). That means the total account grew from $30,000 to $34,900 in just one month. That is over a +16% 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 $58,800 in profit by the end of the year. This means the total account grew from $30,000 to over $88,000 in just one year, that is a 196% annual return on the entire account!
Of course, this approach is highly speculative 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 before, which in our scenario above would result in nearly a $5,000 drawdown to the account. There could be worse drawdowns in the future. 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 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 do have drawdowns and losing trades, even losing months can be a part of trading. But if you have the risk tolerance and ability to watch the market all day, the potential rewards are astounding.
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 are trading SPX and SPY both Daily Outlook and Aggressive strategies, most traders will not try to trade all. Based upon your risk tolerance and account balance, you should choose to focus on SPX or SPY. Then choose either the Daily Outlook exit strategy, or the Aggressive exit strategy. You you may choose to use a combination of both exit strategies. For example you may exit half your position with one strategy and half at another. Or you may exit 60% of your position at one and 40% at another. The possible combinations of using these two strategies are endless and depends upon your own 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.