Research Insights

SPX 0DTE trading has become increasingly popular since the Cboe introduced them. We analyzed 0DTE 2024 volume trends and the evolution of 0DTE options.

Is the FOMC announcement bullish or bearish? We analyzed SPX data around Fed days to see if there’s a tradable edge for 0DTE and 1DTE options.

Wondering how fed rate cuts might impact markets? We looked at past rate-cut cycles and discuss how options traders can take advantage of the coming volatility.

With the popularity of 0DTE, traders are flocking to options assuming prices decay at the same rate all day. But is this actually what happens? Let's see.

Our newest research analyzes the intraday SPX historical prices to see where the market "pegs" certain ranges from different times throughout the trading day.

Our newest research analyzes the accuracy of probabilities across varying sample sizes to help options traders better understand how probability theory impacts success.

We analyzed more than 1.7mil Trade Ideas across various days to expiration in November 2023's volatile market to uncover key insights about the performance of Expected Value and Alpha.

We explore if options probabilities remain predictive throughout a trade's duration to determine if probabilities are always valid, no matter the moment in time they're calculated.

Our newest research blog explores Alpha, which measures return on risk using Expected Value. We analyzed 960k trades on 155 tickers to determine Alpha’s accuracy.

This study examines the Black-Scholes-Merton model's flexibility in calculating expected value. We explore how this formula allows us to calculate probabilities and expected values in multiple ways, and we’ll compare the different methods to show why Option Alpha uses historical volatility.

We share the three EV calculations you can use with the information available in any brokerage platform and compare the methods to determine their accuracy.

We analyzed 130k Trade Ideas positions to visually compare each trade's realized P/L to its Expected Value at trade entry.

We analyzed 230k 0DTE options trades to determine what successful Option Alpha traders are doing and the key metrics that influenced profitable strategy setups.

How has market volatility impacted intraday mean reversion and trend following strategies? We analyzed the first trading hour in SPY to understand intraday mean reversion vs. trend following signals.

We analyzed over 25,000 0DTE option positions traded in the autotrading platform to assess what worked and how traders set up short-term trading strategies.

We studied over 20,000 trades to measure the average time between return extremes over the life of a trade. From all that data and research, see what stands out.

Bullish on AAPL stock? Use Option Alpha to backtest three bullish strategies and compare the results, or search a database of AAPL options strategies.

Investors expect interest rates to rise this year. We studied four similar environments to deliver the context you need for today’s market.

20 years of data suggests this bull market may not be over yet, and the positive momentum could continue into the new year.

Using our Backtester, we explored the historical performance of SPY put credit spreads to help determine the entry and exit criteria that best fit your trading objectives.

VIX and SPX tail risk pricing is astronomically high compared to before the pandemic. What has happened to the price of downside protection? Find out here.

We answer five key research questions about bid-ask spread volatility and explain how these answers can threaten or inform your trading decisions.

Learn how bid-ask spread anomalies bring unique risks and opportunities in options trading with this SPY case study.

What is the "personality" of your favorite ticker? Do you know what the bid-ask spread of the specific underlyings you trade should resemble? Learn about bid-ask spread expectations here.

This case study examines the intraday price volatility of a TLT iron condor to illustrate the forces at play beyond the options Greeks affecting a position's bid-ask spread.