OPEX Week - The Options Expiration Strategy (Backtest)

OPEX week is a crucial time for traders, investors, and market enthusiasts alike. This week occurs every month in the US, with options expiration happening on the Friday before the 3rd Saturday of each month.

But what is the options expiration week effect? Is it a real phenomenon or just a myth? In this article, we explore this topic in-depth.

Our research indicates that the S&P 500 consistently shows abnormal positive returns during the options expiration week. While there are exceptions such as July and January, April is typically the best month for this effect.

Through backtesting, we have confirmed the existence of the options expiration week effect. However, we believe that it's not tradeable on its own and requires additional parameters to be effective.

If you're interested in exploring this further, check out our shop for more ideas and insights on how to make the most of OPEX week. Discover the opportunities and challenges that come with this unique and fascinating aspect of the financial world.

In conclusion, the options expiration week effect is a real and significant factor to consider in your trading strategy. Stay informed, stay vigilant, and join us as we explore the exciting world of OPEX week.

Chapters
0:00 OPEX Week
0:14 What is the option expiration strategy?
0:34 Trading examples
0:49 Opex Cycle
0:57 Trading Rules
1:04 Equity Curve
1:11 CAGR And $ Per Week
1:23 Backtest Results
1:48 Improved strategy

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