Trade SPX Options with Confidence
- With All American Group -
Get access to what financial institutions use to make money in any market condition with SPX options trading
- Manage your risks effectively
- Identify opening and entry reference points
- Execute trades automatically
- Receive warning and exit strategies for your trades
Our algorithms will do the research, charing, and trade execution for you so you can spend more time on things that matter to you. And, we also provide all the guides and tutorials you need to use our system for trading SPX options.
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What are SPX Options?
Benefits of SPX Options
Offers flexibility
You have the choice between AM- and PM-settled contracts and varying contract expirations, including standard, weekly, and month-end. This allows you to have more flexibility when it comes to choosing a position that fits your strategy.
High market liquidity and activity
SPX options are in high-demand and have one of the most active options available during trading hours. This makes it easier for you to find buyers to capitalize or exit your current position, or sellers to get into one. And, with the high activity in the market, you will have a wide range of options for trading, in terms of strike prices and expiration dates, so you can have an easier time picking a strike and expiry that fits your strategy.
Low trading costs
Although trading costs are dependent on your broker, you can expect the costs for SPX options contracts at around USD 1. And, SPX contracts have a contract multiplier of 100, so the commission for every trade is quite small compared to the overall exposure in the contract.
Diversification
SPX options track the performance of the S&P 500, which consists of the 500 largest publicly traded companies in the U.S. by market capitalization. As a result, your position is not dependent on the price movement of a single stock and the events in a single company. And, since these companies are spread across different sectors, the negative events in a single industry will not be as devastating to your position.
Cash Settlement
Equity options that expire are often settled in shares of stock and, in the case of equity ETF options, in shares of that fund. SPX options are settled with cash so you do not have problems liquidating any shares and getting your capital back for future trades.
Tax Benefits for U.S Citizens
Capital gains from SPX options trading qualify for a U.S. special tax rule that allows investors to treat 60% of their profits as long-term capital gains, regardless of how long or short they held the options. As a result, you will be paying less in taxes on your earnings from trading SPX options.
Why Choose All American Group
Expertise
All American Group has a team of seasoned professionals who use their wealth of experience and expertise to create algorithm-based trading strategies tailored for SPX options.
Risk Management
Real-Time Analysis
Integrity
We deliver what we promise. All American Group upholds the highest standards of integrity to ensure your interests are at the forefront of our actions.
Transparency
Unlock Data-Driven Trading with All American Group
Frequently Asked Questions
SPX is the ticker for the S&P 500’s stock index. It is a capital-weighted index that tracks the stock performance of the 500 biggest publicly-listed companies in the United States. Its trading times are from 8:15 p.m. to 9:15 a.m. ET.
SPX is a European-style option. This means you can only exercise the option on the expiration date and not earlier. It is also settled in cash, so you will not receive any stocks or shares.
The expiration of the option is on the third Friday of each month, AM or PM depending on your choice. The settlement price comes from the next day’s opening price.
Like any financial instrument, there is a risk that you lose the entire premium you paid. But, since the S&P 500 is not as volatile as other markets, it has a relatively low risk compared to other indices where you can trade with options. SPX options are also one of, if not the most, heavily traded options in the world. Because of this, there are no problems in terms of liquidity when trading SPX options.
Our platform is designed with beginners in mind. You can use our strategies even if you don’t have any previous trading experience. The algorithms will do all the work for you.
All American Group also offers educational resources in the form of videos and guides to help you understand our system and trading.
All American Group offers a groundbreaking algorithm that allows retail traders to gain access to a powerful tool comparable to those used by big banks, hedge funds, high-frequency traders, and institutional investors.
Our algorithms analyze market trends in real time, enabling you to adapt swiftly to market changes.
Although All American Group caters to different budget levels, a balance of $10,000 is a good starting point for day trading SPX options. This will allow you to set up more favorable trades in terms of profitability and risk management.