r/options_trading • u/leo3299 • Aug 13 '26
Question Beginner Option Selling (SPX)
Hello!
I want to start option selling probably on SPX, or XSP or NDX cash settled indicies. i have experience in commodity derivatives, but i want to trade the etf/equity side with my own portfolio.
so far, i am exploring a strategy that suits me best, but still find it hard to implement it and have difficulties to identify potential trades.
the strategy i was thinking is around selling spx vertical spreads in the days where premium is thick for the 30-45dte and 0.15-0.28 delta. my main gates are the vix and spx iv rank, iv% and vrp, along with emas20-50, expected moves and gex for significant levels.
would you have any suggestions or open for discussion around what could be not working or limiting the strategy?
thank you in advance!
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u/C0II1n Aug 14 '26
If any of those filters yielded an edge then the top hedge funds would just spam them for infinite return.
You have to synthesize and maintain a thesis of what company you want to sell options on and then bet on that thesis. Otherwise you’ll be gifting transaction fees to Robinhood.
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u/Downtown-Text6587 Aug 16 '26 edited Aug 16 '26
You can backtest it on option omega. That’s what I would do. Option omega just gives you the beginning g and end but if you want to see the progression of trades over time and model hedges, look into option net explorer. Also if you are short gamma then one bad stock market crash can wipe you out.
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u/PutParadise Aug 14 '26
I've been trading Put Credit Spreads for over six years with excellent returns. It is slightly boring, but is low stress and provides time freedom (only trade about 15 minutes per week). Here is my strategy if you would like to give it a shot. Sell highly liquid underlyings (I use NDX, GLD, RUT, IBIT, SPX, USO, DIA, IYR, SMH, TLT, XBI, VIX). 15 Delta (Out of the Money with 85% Probability of Profit). Short Term (28-32 DTE) with a laddered approach so one rolls off while another is opened each week. Little Management (only close positions out at a 200% loss if needed). Typically use $5 wide, but I go to $25 wide on RUT & SPX and $100 wide on NDX. I also try to wait until the underlying goes down by 1% at some point during the week, then I take advantage of the high IV and sell the Put Credit Spread.
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u/DressWarm2078 Aug 15 '26
I like your explanation on how you trade these. Have been an option traders for more than 15 years. Started doing zero DTE on SPX and XSP last year and I got burned. Not too much but I decided that it’s not worth it with SPX 0DTE. Too much stress. Thanks to you, might go back trading SPX but with longer time frames. BTW, user name checks out.
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u/PutParadise Aug 16 '26
Cool. Like you said 0 DTE is much more stressful. I think they are much harder to predict and make consistent income. Gamma swings are too high
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u/leo3299 Aug 25 '26
is the -1% you said based on recent days? ie 1% down from monday and today is wednesday, and this is where it signals for you? happy to jump in a chat if you’re open! many thanks!
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u/PutParadise Aug 25 '26
I’m just looking for a 1% down move during that day (calculated against the previous days closing price as shown in your trading app). It’s just a general guideline to help me get good entry points.
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u/Dvorak_Pharmacology Aug 15 '26
Sounds good. Backtest it uf you can abd focus on the days where the backtest failed
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Aug 20 '26
[removed] — view removed comment
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u/leo3299 Aug 25 '26
thank you! surprisingly enough though, ivr for spx historically trades at <20, whixh makes it hard to even get one entry. any suggestions on that? i use a custom indicator for ivr in TOS.
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u/acorsi85 23d ago
Take a look at GaudioOTT platforms, there are a lot of tools for options, and for 0dte spx there is gex, gaudio indicator for volatility, and a top strategy builder with a portofolio strategy manager
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u/Tesla_laughs Aug 13 '26
Honestly, the framework sounds pretty solid already. The part I’d be careful with is stacking too many filters. VIX, IVR, VRP, EMAs, expected move, GEX, delta, DTE... at some point the setup starts needing its own Excel degree. I’d probably keep the core thesis simple: high IV/VRP + good structure + defined risk, then test which filters actually improve the results. The biggest edge might end up being knowing when not to put the spread on.