Every Sunday we sell ES put options to generate consistent weekly yield — but only when the market is in a confirmed uptrend. 99% of our puts expire worthless. Systematic. Rules-based.
Insurance companies don't write policies into hurricanes. They assess conditions and only underwrite risk when conditions are favorable. We apply the same discipline to selling ES puts.
Every Sunday we check whether ES is trading above our key exponential moving averages — confirming an uptrend. We only sell a put when this condition is met. When the market is in a downtrend, we stand down entirely and take no position — just like an insurer refusing to write hurricane coverage when a storm is on the radar.
When conditions are green we sell an out-of-the-money ES put, collect the premium, and let it expire worthless by Friday. 99% of the time that's exactly what happens. On the rare occasion we're assigned, we hold the long ES futures position until recovery — max drawdown 2–3.73%, avg recovery ~7 days.
You can follow these trades using SPY, SPX, or XSP options. But ES puts are preferred — and for four specific reasons that matter to put sellers.
| Feature | ES Puts (What We Trade) | SPX / XSP Puts | SPY Puts |
|---|---|---|---|
| Exercise Style | European — no early assignment risk | European — no early assignment risk | American — early assignment at any time |
| Tax Treatment | Section 1256 — 60% long / 40% short term | Section 1256 — 60% long / 40% short term | Equity option — 100% short-term rates |
| Dividend Risk | None — futures pay no dividends | None — cash settled index | Quarterly dividend triggers early exercise risk |
| Trading Hours | 23 hrs/day — enter Sunday night at Globex open | Regular market hours only | Regular market hours only |
| Capital Efficiency | Futures margin — most efficient | Moderate | Similar to SPX but smaller |
| On Assignment | Long ES futures — hold and sell next Sunday's put | Cash settled — no position to hold | Assigned ETF shares — additional management |
ES futures options are Section 1256 contracts under the IRS tax code. Every trade gets the 60/40 split automatically — regardless of how long you held it.
60% of ES put profits are automatically long-term, taxed at 0%, 15%, or 20% depending on your bracket — even if you held the trade for just 4 days.
Only 40% at short-term rates. Compare that to SPY options where 100% of profits are short-term — taxed as ordinary income up to 37%.
Section 1256 losses can be carried back up to 3 years to offset prior gains and generate refunds — a provision unavailable with equity options.
Illustrative example only. Assumes $16,224 yield, 15% LT rate, 32% ST rate, single filer. Individual tax rates, income, and circumstances vary. This is not tax advice. Consult a qualified CPA or tax professional familiar with Section 1256 contracts before making any decisions.
Full transparency every Sunday — chart, trade, OptionStrat diagram, and broker order screenshot included with every single alert.
Every Sunday evening: exact ES put strike, expiry, premium target, and full rationale. Two minutes to place. No guesswork.
Every alert includes the TradingView chart showing EMA status, key support levels, and the precise strike location relative to market structure.
Every trade includes the OptionStrat P&L link — max yield, breakeven, probability of profit, and the full risk profile at a glance.
We post actual broker screenshots of every order placed and every fill received. No hypotheticals. You see exactly what we trade and at what price.
On rare assignment weeks, daily Discord updates with TradingView chart analysis each morning — full guidance until the position recovers.
Every trade since 2020 — entry, result, chart, and broker screenshot — logged publicly. 482 trades. Zero cherry-picking.
Live community of 300+ traders running the same strategy. Market discussion, questions answered, mid-week updates during assignment holds.
Join Discord →Full video library: ES put mechanics, the EMA filter, assignment handling, Section 1256 tax overview, and broker setup guides for Tastytrade and IBKR.
Every alert posted before the trade opens. Every broker screenshot logged. Every result public. No hindsight. Since 2020.
Both plans include the full Sunday alert package — TradingView chart, OptionStrat diagram, broker screenshot, and trade log access.
482 trades. 99% expiry rate. Section 1256 tax treatment. Full chart + order transparency every Sunday.