SPY SPX7DTE income strategy spread study

This podcast episode discusses an in-depth spread study conducted on the SPY SPX7DTE income strategy. The study aimed to explore the use of spreads in the strategy and provide some context and insights on their performance. The speaker performed multiple backtests using eDeltaPro backtesting software, focusing on controlling for variables such as the width of the wing. The results showed that there is a sweet spot where a tight spread can provide a good return on capital, although trading naked had the highest profitability. The study also compared the results between SPX and SQI, highlighting the impact of commission costs on smaller products like SQI. Overall, the episode emphasizes the trade-offs between spreads and trading naked, as well as the importance of considering account size and risk tolerance when selecting a strategy.