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How Trading SPX Options Lets You

Pay Less Capital Gains Tax

Enjoy the Tax Treatment Benefits of SPX Options with All American Group

SPX options offer unique trading opportunities, but their tax implications can be complex. Partner with All American Group to make this tax journey seamless.

One of the biggest drawbacks of day trading is the tax treatment of your capital gains from securities held in the short term. These are taxed as regular income so you end up paying more from what you earn when compared to other types of securities. 

This disadvantage is what makes SPX options an attractive choice for day trading. Thanks to section 1256 of the Tax Code, a portion of the capital gains from trading SPX options have a tax treatment equivalent to long-term capital gains. So, if you are looking for a trading vehicle that allows for tax planning flexibility, SPX options might just be the addition you need for your financial portfolio.

What Are SPX Options

SPX options are exchange-traded options that track the performance of the S&P 500 Index, which consists of the 500 publicly listed companies in the United States. It is a European-style option, so these are settled in cash and can only be exercised on the contract’s expiration date. As for its settlement value, it is calculated using the opening sales price on the expiration date.

The SPX Options

Tax Advantage

SPX options have a different tax treatment compared to stock options. It is one of the exchange-traded options that qualify under section 1256 of the Tax Code. This section entitles the profit and loss from SPX options (held for any amount of time) taxed at a rate equal to 60% for long-term and 40% for short-term capital gain or loss. To illustrate, if you gained $1,000 from your position, $600 would be taxed at the rate for long-term capital gains (15%) while the remaining $400 is taxed at the higher rate for ordinary income (35%). This favorable tax treatment that SPX options have allows you to get more out of your trading gains. This allows you to increase your capital faster, get more out of your trading profits, and accumulate your wealth more effectively over time.

Other Advantages of

Trading SPX Options

Flexible Contract Terms

SPX option contracts have flexible terms, allowing you to have an easier time choosing a position that fits in your trading strategy. You can choose between AM- and PM-settled contracts and varying expiration dates, including standard, daily, weekly, and monthly expirations.

High Demand and Trading Activity

SPX options have high demand and above-average trading activity. You can easily find existing contracts to lock in your position and attract buyers for those that you currently hold. There are also a wide variety of contract terms available in the market at any time.

Low Trading Costs

Trading SPX option contracts only costs around $1. And, these contracts have a multiplier of 100 so commissions are relatively small for their overall exposure.

Risk Diversification

SPX options track the performance of the S&P 500 index, which consists of the 500 largest publicly traded companies in the United States. This protects your capital from highly volatile price movements that arise from negative news and events involving a single stock or industry.

Cash Settlement

SPX option contracts are settled in cash upon expiration. Because of this, unlike other options contracts, you do not have to worry about liquidating any assets or shares that may decrease in value and reduce your profits.

Get More Winning Trades with Our Algorithm-Based

SPX Trading Strategies

Our algorithm-based SPX options trading strategies can help you navigate your day trading journey with confidence. You don’t need to research and make numerous positions to achieve a high win rate in trading SPX options. Start your 14-day free trial with us to see how well we fit into your overall financial plan.

Why Choose

All-American Group

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Strategized Approach

Our trading strategies utilize advanced algorithms and proven methodologies for identifying opportunities in the SPX options market. Our method leverages advanced calculations and market data in seeking out these opportunities and identifying the best price points for a profitable trade. And, although not all trades are guaranteed to be successful, we test our algorithm to ensure we maintain a high win rate for the strategies we suggest. Currently, our algorithm, named Alfred, has turned out profitable trades at a rate of 93 percent.

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Continuous Learning

Markets are constantly changing. All American Group recognizes this fact and ensures that our algorithm maintains or improves its trading win rate through continuous learning and improvement of our algorithm and strategy. We are committed to keeping you ahead of the changes in the market and helping you maximize your profits while keeping your risks manageable.

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Holistic Support

From day one, we are here to help you succeed in trading SPX options with our algorithm-based strategy. We have learning resources that will allow traders to learn how our platform works and how they can use it. We even have resources that can help novice traders understand SPX options trading.

Gain Access To The

Strategy Used By Institutions With All American Group

Begin your journey towards financial freedom with our algorithm-based SPX options trading strategy. With our plans, you will get opening reference points, entry reference points, warning strategy, and exit strategy without having to do the research and charting yourself. Try out our strategy by starting your 14-day free trial period!

Frequently Asked Questions

How are SPX options taxed differently from regular stock options?
Unlike regular stock options, capital gains or losses from trading SPX options are subject to a 60/40 tax treatment for U.S. citizens. 60 percent of the amount is subject to long-term capital gains tax treatment while the 40 percent is subject to short-term capital gains tax treatment.

Yes, all SPX option trades are taxed the same way.

Losses on options trading are treated as capital losses, which you can offset your capital gains for a given period. For more specific guidance regarding the tax treatment of your SPX options gains or losses, please talk to your tax advisor.

Beginners are the users we have in mind for our algorithm-based strategy. It will do all the work necessary for creating a strategy that will increase the rate they win trades.

Research and preparation are essential for increasing your chances of making winning trades for SPX options. All American Group’s algorithms will take care of the research and identify the different points you need to know to make a trade.

Increase Your Win-Rate

Trading SPX Options with All American Group

Using our algorithm allows you to make consistent winning trades without the stress and work that you would typically do in day trading options. And, with our 93 percent profitability rate and commitment to consistent results, you can expect to get positive results from our algorithm-based strategy for trading SPX options. Start your 14-day trial with All American Group today!
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