March 2025 - Page 3 of 309 - SPX Option Trader

Week in Review 3/31/2025-4/4/2025

It was another profitable month for us at SPX Option Trader! We ended this past month with +187% ROI in our SPX Daily Outlook, +189% ROI in our SPY Daily Outlook, +341% ROI in our SPX Aggressive trader, +346% ROI in our SPY Aggressive trader, +67% ROI in our Late Day Trader, and +271% ROM in our SPX Spread Trader. Overall, it was a very nice return for the month of March. For this past week of trading we were -2% in our SPX Spread Trader with no trades in any other strategy. So, it was a flat week for us.

Over the past few weeks, we have experienced unusual trading activity, leading to several days with no trades across most of our strategies. This week the high option prices and large morning gaps kept us on the sidelines. While these market conditions are uncommon, they have occurred before and will happen again. Successful trading isn’t about taking trades every day—it’s about recognizing when the risk-to-reward ratio is in our favor. March was a perfect example of this approach; despite having 12 days with no trades in our Daily Outlook, we still ended the month with solid profits. Our strategies prioritize long-term gains over unnecessary risk, which is why we remain patient, keeping our capital ready for the right opportunities.

When option prices are excessively high, day trading becomes riskier and less profitable. Elevated premiums mean traders must overcome significant costs just to break even, reducing the efficiency of day trades. For example, on Friday, the SPX 5260 put—our typical trade—opened with a premium of nearly 50. Even after a 150-point market drop, the option’s gain was only around 225%. Clearly that is a nice return, but it took 150 point drop in the SPX to make it! That is not an ideal risk-to-reward setup. On a normal trading day with lower option prices, a move of that size would yield much higher returns. This highlights the challenge of trading expensive options—they require massive market moves just to achieve modest gains, while smaller moves can lead to significant losses. Given these conditions, we prefer to stay on the sidelines when prices are so high and wait for better trading opportunities, while traders comfortable with higher risk may still trade based on our Daily Outlook.

Despite market volatility, our market forecasts remain highly accurate, giving our members a strategic advantage. As day traders, we eliminate the risk of overnight exposure by closing all positions the same day. When market conditions aren’t favorable, we stay disciplined and wait. But when the right setup appears, we’re ready to act decisively. Don’t be concerned about no-trade days or the recent market pullback. As 0DTE SPX and SPY option traders, these types of moves don’t affect our strategy. Once the option prices come back down, we’ll be able to resume our regular trading activity with confidence. We’re looking forward to another week of smart, disciplined day trading in SPX and SPY 0DTE options.