7 Killer Options Trading Methods Experts Use to Crush the S&P 500

Active investors seeking consistent outperformance against market benchmarks require sophisticated tools beyond simple stock ownership. Options trading offers the structural leverage and versatility needed to capture alpha—the excess return attributed to skill rather than market exposure. These seven strategies FORM the core toolkit for traders targeting systematic S&P 500 outperformance.

Premium-selling strategies like advanced iron condors and short strangles dominate the high-probability income playbook. Calendar spreads exploit time arbitrage, while diagonal spreads combine directional bets with THETA control. Cash-secured puts enable strategic stock acquisition, and dynamic delta/gamma hedging provides precision risk management. Mastery of trade adjustments and rolls completes the arsenal.

Alpha remains the definitive metric separating active skill from passive exposure. In derivatives markets, it quantifies the ability to generate benchmark-beating returns adjusted for systematic risk. Consistent positive alpha signals a measurable edge—the holy grail for options traders.