Another great month for us at SPX Option Trader. We ended February with +779% ROI in our SPX weekly option trading and +768% in our SPY weekly option trading. Due to the extreme volatility this past week, we had no trades for 5 days in a row. This is extremely rare, and has never happened since we began our service in 2016. But of course, this week was highly unusual in the market. The VIX has seen a historic jump this past week. The S&P 500 has never had this fast of a decline (over 15% from high to low) in it’s history. Not only did we see huge gaps on several days, the option prices were extremely expensive. When option prices are so expensive, it just isn’t worth the risk to day trade. Because when the market needs to move at least 20 points for a trader to see a 100% gain, it just isn’t worth it in our opinion. We would rather sit on the sidelines and wait, than force a trade. While it is frustrating to sit on the sidelines while the market is going wild, we also enjoy the fact that we still had a very nice month’s profit. So, we look forward to trading next week. It may take some time, but the option prices will settle back down and when they do, we will be ready to trade.
Below are our comments for each day of this past week.This content is for members only.