The SPX Late Day Trader

This strategy is designed for traders who excel in fast-paced, high-profit opportunities. It concentrates solely on 0DTE SPX options during the latter half of the trading day, aiming to capitalize on market breakouts and breakdowns for substantial gains. While it is highly speculative, it also presents the potential for extraordinary profits. By embracing the associated risks, this strategy has delivered an impressive average monthly return of over +610%.

What does the SPX Late Day Trader entail?

This is a highly speculative strategy that focuses on trading during the final 3 hours of trading day. In this strategy we do a single trade late in the day, purchasing either a put or a call in the SPX. We trade SPX Options on expiration day (0DTE options) only. We are looking to profit from the late day price swings that we so often have in the SPX. These trades can move extremely fast, sometimes moving more than 100% in value in just seconds. It requires a trader to be prepared and ready to respond quickly. The potential rewards for this type of trading are truly astounding.

We are looking for trading opportunities when the SPX breaks through support or resistance levels and seeking to profit from the late day movement. We share the level we are watching and the specific option we plan to buy if that level is broken. Trade setups can occur between 12:30 p.m.- 3:50 p.m. EST. Depending upon market conditions there are days with no setups or days where the level we were watching is not broken.  We only trade SPX options on the day of expiration (0DTE). We do not trade SPY options as this is a late day strategy. Many times we hold our options to the close and let them settle for cash. This approach is only possible with SPX options.

We are risking 100% loss on each trade, and often we will experience this loss. These options can move extremely fast and often can move more than 100% in just a few seconds. Trading this strategy requires a trader to be able to monitor a position very closely and be ready to withstand extended drawdown periods. This is an advanced strategy for those willing to take the risk, the rewards can be astonishing. Take for example this trade on 5/6/2024. We made over +720% in just a 15 minutes! But there are also days where we have taken a 100% loss.

By staying consistent in our trading strategy, we achieve success over the long term.

This is a highly speculative strategy and a trader must be prepared for 100% losses and sometimes several in a row. So caution is urged, this approach is for the more advanced trader who is willing to take the risk and able to monitor their position and exit accordingly. Because we are trading 0DTE options, it is extremely volatile. This is a highly aggressive approach that requires a trader to be able to handle larger 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 strategies. The higher potential gain comes from that same fact, as we are often able to ride the runs to further gains.

Our ability to identify levels of support and resistance late in the day combined with our own unique approach to managing the trade is what makes this strategy unique.  We enter each trade willing to risk 100% loss, and then adjust our stop loss as the market moves in our direction.  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.

How does the Late Day 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. Information can be posted anytime after 12:30 p.m. EST.  Our basic approach is to use between a 100% to 200% trailing stop as we seek to maximize the run.  Here is an example of what a typical day’s information looks like:

SPX Late Day Trader 05/14/2024

If the SPX trades above 5223.25 then we plan to purchase .SPXW240514C5225 (SPX weekly option: CALL, Strike: 5225 Expiration:05/14/2024) at limit price of 6.5 *please note trading guidelines.

——— TRADE UPDATE ———

We purchased .SPXW240514C5225 (SPX weekly option: CALL, Strike: 5225 Expiration:05/14/2024) at a price of 3.4 We will be using our trading guidelines in choosing our exit price. No further updates will be given until after we exit the trade.

——— TRADE UPDATE ———

We exited our position at 21.68 for a profit of 538%

You will notice that we posted our trading plan first. We were waiting for 5223.25 level to be broken on SPX. When that happened, we entered the option as directed. Then we updated after we entered, and after we exited the trade.  We let this position settle at the close and had a a nice profit of a +538% return. Now not every trade is that profitable, and we do have losers. But this is a good example of the information we share. You may view our entire past performance for further evaluation.  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.

We are looking for breakouts or breakdowns with this strategy. We wait to enter the trade until a specific price level is broken. It is crucial that a trader not enter early, patience is key. Wait for the specific level shared to be broken before entering the trade. Once we enter the trade, we seek to maximize our profit the best we can.

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 what to look for and what option contract we are trading.  Our Trading room sounds an audio alert whenever new information is posted. Past performance is never a guarantee of future results. However, imagine achieving similar returns in your own trading journey!

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.

Can I combine Daily Outlook and Late Day Trader?

Absolutely! That is exactly how we trade ourselves. We are normally out of our Daily Outlook Trades within first hour of the day. Most often we are also out of our Aggressive Trader before noon. So normally the late day strategy involves trading after we have exited our morning trades. There may be rare occasions where we are still in our morning trade. But if that happens we simply have 2 different trades active.

What type of account is needed?

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.