SPXS Options
Direxion Daily S&P 500 Bear 3X Shares Options Chain, Implied Volatility & Greeks
Comprehensive options market data for Direxion Daily S&P 500 Bear 3X Shares (SPXS). Explore implied volatility patterns, options chain liquidity, gamma exposure levels for this leveraged inverse S&P 500 ETF.
SPXS Options at a Glance
What's Covered in This Guide
1 About Direxion Daily S&P 500 Bear 3X Shares (SPXS)
SPXS seeks daily investment results of 300% the inverse of the daily performance of the S&P 500 Index. This leveraged inverse ETF is designed for short-term tactical bearish positioning or hedging. Due to daily rebalancing, long-term returns may differ significantly from -3x the index return.
Company Profile
Key Dates
SPXS is a primary vehicle for leveraged bearish S&P 500 exposure. It's used by traders for short-term market hedges and directional bearish bets.
2 SPXS Options Market Overview
SPXS options provide leveraged inverse exposure to S&P 500 moves. Volume increases dramatically during market selloffs and periods of elevated VIX.
Liquidity Assessment: Good
SPXS options liquidity spikes during market corrections. Call volume dominates as traders bet on market declines.
3 SPXS Volatility Profile
SPXS implied volatility runs approximately 3x SPY IV due to leverage. IV spikes dramatically during VIX surges and market selloffs.
Earnings Impact
No earnings, but IV rises during market stress events and Fed announcements.
Historical Volatility vs IV
IV tracks 3x SPY volatility. During low VIX periods, SPXS IV can appear elevated relative to realized moves.
Term Structure
Usually steep contango as long-term decay is priced in. Inverts during crisis events.
SPXS Gamma Exposure (GEX)
Gamma Exposure analysis for SPXS reflects leveraged inverse positioning. Call gamma dominates as traders use calls for bearish bets.
Typical GEX Profile: SPXS typically shows positive gamma from call hedging. During crashes, gamma can accelerate moves.
Key Levels: Strike clustering occurs at round numbers. Heavy call interest at strikes above current price.
Dealer Hedging: Dealers hedging SPXS calls must short S&P futures, adding to selling pressure during corrections.
4 Common SPXS Options Strategies
These are strategies commonly used by traders on SPXS options, based on typical market characteristics. This is not investment advice.
Used for leveraged bearish S&P 500 bets. Cheaper than buying SPXS shares with defined risk.
Call debit spreads reduce cost of bearish bets while capping upside. Popular for defined-risk trades.
Puts on SPXS can hedge short equity exposure or lock in gains on SPXS long positions.
Selling puts collects premium from those betting against market crashes.
Used to capitalize on elevated near-term IV during market stress.
Key Considerations for SPXS Options
- SPXS is a 3x leveraged inverse ETF - it's designed for short-term trading, not holding
- Daily rebalancing causes significant decay over time in trending markets
- During prolonged bull markets, SPXS can decline 80%+ and reverse split
- Best used for short-term tactical trades or intraday hedging
- Options premiums are high due to elevated IV from leverage
- Volume and liquidity spike during market corrections
Frequently Asked Questions: SPXS Options
How liquid are SPXS options?
SPXS options have good liquidity with average daily volume exceeding 100,000 contracts. Liquidity spikes significantly during market selloffs.
What is SPXS's typical implied volatility?
SPXS implied volatility typically ranges from 50% to 200%. As a 3x leveraged ETF, its IV runs approximately 3 times SPY implied volatility.
Why does SPXS decay over time?
SPXS rebalances daily to maintain 3x inverse exposure. This daily rebalancing causes decay in trending or choppy markets, making it unsuitable for long-term holding.
When should I use SPXS options?
SPXS options are best for short-term bearish bets or tactical hedges during expected market declines. Use for days to weeks, not months.
Are LEAPS available for SPXS?
Yes, SPXS LEAPS exist but are rarely used due to decay. Long-dated puts on SPY or short SPY calls are usually better for extended bearish positions.
What is the best time to trade SPXS options?
The most liquid trading hours for SPXS options are typically during regular market hours (9:30 AM - 4:00 PM ET), with highest volume around market open and close.
How do I calculate SPXS option Greeks?
Use our free Options Calculator or Greeks Heatmap tool to calculate delta, gamma, theta, vega and other Greeks for SPXS options across all strikes and expirations.
What happens to SPXS options at expiration?
In-the-money SPXS options are typically auto-exercised at expiration. Out-of-the-money options expire worthless. Consider closing positions before expiration to avoid assignment risk.
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