It was another profitable week for us at SPX Option Trader!  We ended this past week with +22% ROI in our Late Day Trader and +22% ROM in our SPX Spread Trader. This past week was highly unusual, as we had no trades in the Daily Outlook or Aggressive Trader due to the exceptionally high cost of options. While rare, this has happened before—once in January 2022 and for several weeks during March 2020, both periods of extreme market volatility that drove option prices to extremely high levels.

When option prices are excessively high, day trading SPX and SPY options becomes too risky. High premiums increase entry costs, making it harder to achieve an acceptable risk-to-reward ratio. However, we continue to provide our daily market forecast for traders who choose to trade these conditions. Our forecasts remain incredibly accurate, consistently identifying market direction and key levels to watch. Once again, this past week we had 100% accuracy in forecasting the 1^st target level in SPX.

There is nothing wrong with staying on the sidelines when market conditions are unfavorable. Successful day trading is about knowing when to trade—and when to wait. Meanwhile, our Spread Trader Strategy continues to generate trades daily, as high option prices do not negatively impact this approach. That said, last week’s extreme market swings led to early exits on all trades. Still, the Spread Trader Strategy remained profitable, proving to be a reliable method for trading even when option prices soar.

We remain confident that option prices will soon normalize, allowing us to resume active day trading in Daily Outlook and Aggressive Trader. Until then, patience is key—we wait for the right opportunities to trade successfully. We look forward to what next week will bring! Below are our comments on each trading day from this week:

3/10/2025

Daily Outlook

Due to the high price of options, there was no trade for us today.

Aggressive Trader

Due to the high price of options, there was no trade for us today.

Spread Trader

We exited our SPX Spread Trade early for a return +2% ROM.  Another profitable day and we look forward to what tomorrow will bring!

Late Day Trader

Due to market conditions, there was no trade for us today.

3/11/2025

Daily Outlook

Due to the high price of options, there was no trade for us today.

Aggressive Trader

Due to the high price of options, there was no trade for us today.

Spread Trader

We exited our SPX Spread Trade early for a return +0% ROM.  A flat day and we look forward to what tomorrow will bring!

Late Day Trader

Due to market conditions, there was no trade for us today.

3/12/2025

Daily Outlook

Due to the high price of options, there was no trade for us today.

Aggressive Trader

Due to the high price of options, there was no trade for us today.

Spread Trader

We exited our SPX Spread Trade early for a return +2% ROM.  A small but profitable day and we look forward to what tomorrow will bring!

Late Day Trader

Just after 3:15 p.m. we entered a put option trade. Our option hit nearly +50% and then started to reverse very quickly. As it bounced, we exited our position just after 3:20 p.m. for +17%. Given the volatility of the day, we weren’t willing to risk any further at this point in the day. So, another profitable day and we look forward to what tomorrow will bring!

3/13/2025

Daily Outlook

Due to the high price of options, there was no trade for us today.

Aggressive Trader

Due to the high price of options, there was no trade for us today.

Spread Trader

We exited our SPX Spread Trade early for a return +8% ROM.  Another profitable day and we look forward to what tomorrow will bring!

Late Day Trader

Due to market conditions, there was no trade for us today.

3/14/2025

Daily Outlook

Due to the high price of options, there was no trade for us today.

Aggressive Trader

Due to the high price of options, there was no trade for us today.

Spread Trader

We exited our SPX Spread Trade early for a return +10% ROM.  Another profitable day and we look forward to what next week will bring!

Late Day Trader

Just after 2:35 p.m. we entered a call option trade. Our option hit nearly +40% and then started to reverse very quickly. As it pulled back, we exited our position just after 2:50 p.m. for +4%. Given the volatility of the day, we weren’t willing to risk any further at this point in the day. So, another profitable day and we look forward to what next week will bring!