XSP Trade Engine — S&P 500 Cash-Settled Index Income
Cash-settled S&P 500 (XSP) index options traded weekly under the high watermark rule. No stock assignment — every position settles in cash. Seeking to generate income through disciplined premium collection, supervised by Australian Investment Education.
Capital required
The minimum capital for the XSP Trade Engine is AUD $25,000, which supports one contract.
Fees
No management or performance fees apply to this strategy. Standard brokerage applies to each trade — rates are set out in our Financial Services Guide.
Key risks
XSP options are cash-settled index options — there is no stock assignment, and settlement amounts are debited or credited in cash. Options income does not remove market risk: adverse index moves can exceed premium collected. Returns for Australian investors are also affected by movements in the AUD/USD exchange rate. All trading involves risk and capital is at risk.
Getting started
Supervised Strategies are available exclusively to members of Australian Investment Education's Cashflow on Demand program. Request the information pack for this strategy, then complete the Strategy Execution Agreement online. Once your account is set up and funded, trades are placed by the AIE trading desk under the strategy's written rules.