Our core service focuses on day trading SPX and SPY options on their expiration day, commonly known as zero-day expiration (0DTE) options. We aim to capitalize on intraday market movements with clear daily trade alerts that provide precise entry and exit guidelines, along with updates to support your trades. We keep it simple: one trade per day, either a put or a call. We typically enter trades just minutes after the market opens and exit normally within an hour, making this a proven strategy for success in trading 0DTE options. The best way to access this information is through our website, though we also offer email updates for those who request them. The Daily Outlook features two main sections: the Market Forecast and the Trading Strategy.

The first section is our Market Forecast, where we offer precise price targets for the day’s close, and key target levels for both the SPX and SPY. Our Daily Target indicates the price level we anticipate the market will close above or below, while the additional price targets highlight key support and resistance levels to monitor throughout the day. This equips you with valuable insights for your day trading.

The second section is our Trading Strategy, where we outline the specific options and price points we intend to trade. We provide information on entry limits, initial stop loss, and profit targets, along with updates throughout the day to communicate any adjustments to our targets and market observations. You’re never alone; we’re here to support you at every stage of the trade. Our website offers comprehensive guidelines outlining our criteria for entries and exits. While each trader must decide their own entry and exit points based on personal risk tolerance and market analysis, we share our approach every step of the way.

Some traders choose to replicate our trades, while others use this information to guide their own strategies. How you apply this valuable insight is entirely up to you, as each trader has unique goals and risk tolerances. However, having access to this information each morning can significantly enhance your day trading, just as it has for us.

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. Having adequate capital helps ensure effective management of potential risks.

How Does the SPX Daily Outlook Work?

Let’s look at an example, this was our SPX Daily Outlook on 02/20/2020:

SPX Daily Outlook 02/20/2020
SPX Market Forecast

Close of the day for SPX should be below 3381
1st Target low 3371
2nd Target low 3364
3rd Target low 3357
These are the key levels we will be watching in our trading today.

SPX Trading Strategy

We plan to Buy to Open .SPX200221P3375 (SPX Monthly Option: put, Strike: 3375 Expiration: 02/21/20) at limit price of 8 *please note trading guidelines below.
We will be looking for about a 90% profit and using about a 75% stop along with using our target price levels. Please see our website www.spxoptiontrader.com for further information on our trading guidelines.

SPY Market Forecast

Close of the day for SPY should be below 338
1st Target low 337.25
2nd Target low 336.5
3rd Target low 335.75

So, let’s walk through a real day and see how a trader can use our service. Within minutes of the open you have access to our SPX Daily Outlook directly on our website and consequently you are ready for the day. As it nears 9:35 a.m. EST you notice the Option contract is trading below the limit, so you enter at 5.26. The SPX rallies a bit, going in the opposite direction, but never hits the initial stop loss % shared in the Daily Outlook of -75% so you hold your position. Then the dramatic sell off begins just after 10:40 a.m. In less than an hour you watch as the market quickly drops through all 3 target levels. Using the guidelines provided on our website, once the SPX breaks the 3rd target level, you are watching for a reversal. As the market starts to bounce off the low, you decide to exit your position at 30.23 to lock in a nice profit of +475%! Because you used our service, you made +475% ROI in one day trade. Our SPX Daily Outlook helped you to not get shaken out by all the other noise in the market. This is just one example of how you might be able to use our service in your own trading. For more examples please see our SPX Trader’s Blog entries where we discuss each and every trade. You may also find this article helpful.

Unlimited Growth Potential

To help illustrate how powerful this strategy is, let’s use some hypothetical numbers. Let’s assume a trader starts with $70,000 in his account. For trading SPX Options this is a good starting account size. Traders focused on SPY options could begin with a smaller account, around $30,000. Our trader is comfortable with risk and decides to risk trading $3,000 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. For further information on account size and lot size information, please see these articles.

By trading $3,000 each day, at the end of a month with a 440% average monthly return this trader would see about $13,200 in profit (depending upon commissions and slippage). That means the total account grew from $70,000 to $83,200 in just one month. That is about a +19% 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 $158,000 in profit by the end of the year. This means the total account grew from $70,000 to over $228,000 in just one year, that is over 225% annual return on the entire account!

It’s important to note that there are no guarantees regarding future performance. Trading options carries risks, and significant drawdowns can occur, as we’ve experienced in the past with multiple losing days and even losing months. There is always a possibility of ending the year with a loss, so traders must be prepared for such fluctuations and never invest more than they can afford to lose.

That said, historical averages highlight the long-term potential of this approach. While not every trade will be profitable and past performance doesn’t ensure future results, the potential rewards can be substantial.

Sign up for a Free Trial Today

Start your free 7-day trial today! For a full 7 days, you’ll have complete access to our service to determine if it’s the right fit for you. Be sure to explore the various articles on our website to learn more about what we offer.