Tell us: How do you like your SPX strategy?

Scattered, Smothered, Covered, Chunked, Diced, and Topped, please. 

Those who live in or are from the Southern US will get the reference. To the rest of you not from my neck of the woods, come in, kick your shoes off, and stay awhile. Wholesome SPX goodness will be served to you.

SPX is a beast. You can make a ton of money or you can lose a ton. It’s all in the way you scatter, smother, cover, and top it.

This page will be the holding page for various strategies and backtests in regards to SPX.

Unfortunately, I do not have access to backtesting software that tests 0dte trades, so I am limited to testing 1 dte +.

Keep in mind that backtesting is only a tool and not the holy grail. It looks at the past and can never predict the future. I personally use backtesting as an edge for trading along with charts to check out the underlying price action of a stock. To determine where that stock has been and take a guess where it may end up. SPX, In the long term, has done nothing but climbed higher and higher over the past few years. Yes, it has had some massive drawdowns during market crashes, but trading options on SPX with stops in place can help smooth out.

You will see within the various backtests I look at, that the return on investment over time has beaten the overall rise of the underlying SPX stock price.

Why SPX?

SPX is the Standard & Poor’s 500 Index. The index is comprised of the 500 largest U.S. publicly traded companies by market capitalization. These are solid companies.

SPX is cash-settled since the underlying asset is not traded. Only the options are traded. This means no messy stock assignments to deal with.

More and more traders are coming into the pit to trade. Volume is high therefore SPX option trades are liquid.

The Strategies

I have tested a few strategies in the past either live or paper trading. Now that I have access to backtesting software there is so much more I want to look at. So, instead of having the studies scattered all over my site. I will list them here.

3 DTE SPX Short Put Spread Study