February 2026 • 12 min read
SPX options are among the most popular trading instruments in the world. Every day, billions of dollars worth of contracts change hands as traders bet on the direction of the S&P 500 index. This guide breaks down everything you need to know to start trading SPX options confidently.
What Are SPX Options?
SPX options are options contracts based on the S&P 500 index. Instead of buying or selling shares of a stock, you're trading the value of the entire index.
- Underlying: S&P 500 Index (SPX)
- Multiplier: $100 per point
- Settlement: Cash (no shares exchanged)
- Style: European (exercise only at expiration)
- Expirations: Daily, weekly, monthly, and quarterly
SPX vs. SPY: What's the Difference?
| Feature | SPX | SPY |
|---|
| Type | Index option | ETF option |
| Settlement | Cash | Physical (shares) |
| Style | European | American |
| Size | ~10x SPY | ~$580/share |
| Tax treatment | 60/40 favorable | Regular |
Bottom line: SPX offers tax advantages and no assignment risk. SPY offers smaller contract size and more flexibility.
SPX Option Expirations
- Daily expirations (0DTE): Options expiring the same day
- Weekly expirations: Every Friday
- Monthly expirations: Third Friday of each month
- Quarterly expirations: End of each quarter
How to Place an SPX Option Trade
- Choose Your Direction - Bullish, bearish, or neutral?
- Select an Expiration - Same day (0DTE), weekly, or monthly
- Pick Your Strike Price - ATM, OTM, or ITM
- Decide: Buy or Sell - Buyers pay premium; sellers collect it
- Size Your Position - Never risk more than 2-5% of account
- Execute the Trade - Use limit orders, not market orders
Common SPX Trading Strategies
- Vertical Spreads: Defined risk, known max profit/loss
- Credit Spreads: Collect premium, profit from time decay
- Iron Condors: Profit if market stays in range
- Long Options: Limited risk, unlimited profit potential
Account Requirements
- Options approval: Most brokers require application
- Margin account: Required for selling options and spreads
- Minimum capital: $5,000-$25,000 recommended
Ready to start trading SPX?
See how we approach the market with our proven methodology.
Learn More →
Disclaimer: Options trading involves substantial risk. This content is for educational purposes only.