Is Options Trading a Viable Second Job? Pros and Risks

From overtime hours to option hours

There’s the old playbook: grab an Uber shift after work, build a weekend consulting roster, babysit someone’s CRM. It’s honest, linear, and you can literally see the hours stack up. And then there’s the screen-heavy alternative a lot of people ask me about this year: options trading as the second job. It feels flexible, scalable, and, on its best days, untethered from the whole “trade time for money” thing. But I’ll be straight: it’s not romantic. It’s work, just a different style of work.

Why even consider options over the traditional side gig? Three reasons I hear over and over: (1) income potential isn’t capped by hourly rates, (2) the schedule can wrap around a day job, and (3) skills compound, if you get better, your edge can widen without adding more hours. Of course, that cuts both ways. Losses also compound. And your edge can shrink if you stop iterating. I know, sounds like I’m over-explaining a simple idea; the point is: optionality is attractive because it disconnects input hours from output dollars, sometimes.

What does the “work” actually look like in options if you’re treating it like a second job? It’s not just pressing Buy on your lunch break.

• Research: tracking catalysts, earnings calendars, implied volatility regimes, and basic probability math. You don’t need a PhD, but you do need repetition and a checklist.
• Execution windows: deciding whether your window is the open, mid-day liquidity lull, or the last hour. If you trade spreads, you’ll care about fill quality and slippage more than you expect.
• Risk monitoring: sizing, hedges, and exits. This is where most “second job” traders fail, not because they’re wrong, but because they’re late.

And 2025 reality is different than even last year. Markets are faster, attention cycles are shorter, and retail tooling is mostly mobile-first. SPY, QQQ, and SPX list expirations every weekday, which means there are five potential expirations each week to tempt you. The 0DTE culture is loud, sometimes useful, and often distracting. I’m pro-choice on strategy, but I’m anti-chaos. For context, Cboe said in 2023 that roughly 40-50% of SPX options volume on an average day was 0DTE, with some sessions running higher. That’s a lot of noise compressed into six-and-a-half hours. It creates opportunities, sure, but it also increases the odds you mistake motion for edge.

On tools: mobile platforms now push real-time alerts, bracket orders, OCOs, and Greeks in your pocket. That’s good. But it nudges you toward constant engagement. Earlier this year I caught myself checking a theta decay estimate in line for coffee, twice. I’d call that a red flag, not a badge of hustle. If you’re going to treat options as a second job, build guardrails: pre-defined entry/exit zones, maximum daily loss, and a set number of alerts you’re allowed to act on. And yes, I might be oversimplifying; the market won’t respect your neat boxes every day. But the discipline buys you headspace.

What you’ll get from this section of the guide: a clear-eyed comparison to hourly side gigs, a breakdown of the actual workflows, research, execution, and risk, and a 2025 context check on mobile-first brokers, real-time alerts, and how to operate without getting dragged into the 0DTE vortex. If you want glossy promises, you won’t find them here. You’ll get a plan. And a reminder that humility beats bravado, especially when the tape is moving fast.

Data point: Cboe (2023) reported that around 40-50% of SPX options volume was 0DTE on an average day; that share has stayed elevated into 2024-2025 on many sessions. Translation: more intraday noise, tighter decision windows.

What “viable” really means: time, capital, and the rulebook

Viable isn’t “I can sometimes check my phone at 11:47 a.m.” Viable is your plan fits the market’s actual clock, your capital can absorb frictions, and the rulebook won’t yank the wheel mid‑trade. Sounds dry, but this is where side-hustle options trading either breathes or suffocates.

Time windows: your schedule vs the tape

Most single-stock and ETF options are liquid during regular hours (9:30-4:00 ET). Pre‑market and after‑hours? They exist for stocks, not for most listed options in any usable way. Yes, index products like SPX have extended sessions (and Cboe’s global hours help), but spreads can widen and fills get quirky. If your day job locks you out between 10 and 2, you’re working with two small windows: the open and the last hour. That’s doable, just narrow the playbook. For example: only enter between 9:35-10:00 when spreads stabilize, and scale out in the 3:00-3:50 window. And if you’re tempted by 0DTE because it “fits lunch break,” remember the clock cuts both ways.

Data point: Cboe reported in 2023 that roughly 40-50% of SPX options volume was 0DTE on an average day, and that share stayed elevated across many sessions in 2024-2025. Translation: more intraday noise, tighter decision windows, less forgiveness.

I’ll admit, I like the clean risk boxes of 0DTE spreads. But the compressed timeline means one Slack outage at work can turn a small mistake into a loss you didn’t plan to babysit. That’s not drama, that’s mechanics.

Capital reality: small accounts feel every nick

• Slippage and fees: A $500 account trying to scalp 10-15% moves is fighting $0.65+ per-contract commissions, fees, and $0.05-$0.10 of slippage on each side. That can eat a third of the expected edge. With $2,500-$5,000, you can size fewer tickets and choose tighter-spread underlyings.
• Margin helps, until it hurts: Buying power is nice, but it introduces tail risk you probably can’t monitor at 1:15 p.m. during a client meeting. Margin rates this year are still hefty at many brokers (high single to low double digits APR depending on tier). If you’re writing spreads, keep defined risk and a hard daily max loss. If naked anything is in your plan… I’m going to be the boring adult and say don’t, not as a second job.
• Cash vs. margin logistics: Cash accounts dodge the Pattern Day Trader label but run into settlement. Options settle T+1 (they already did before the broader equity T+1 change in 2024), so rapid in‑and‑out trades can tie up capital the next day. Margin frees that up but brings the rulebook with it.

The PDT rule still matters

The FINRA Pattern Day Trader rule tags margin accounts that place 4+ day trades in 5 business days with under $25,000 equity. Options day trades count. If you’re planning frequent intraday round trips, that $25k threshold is still the gate. Workarounds? Trade fewer, larger-quality setups; shift to swing structures (1-3 days); or run a cash account and accept the T+1 pacing. I’m blanking on one niche exception a broker used to offer, something about risk-based approvals, but the headline hasn’t changed: under $25k, you’re capacity constrained for day-trading.

Broker risk controls: the quiet tripwires

• Approvals: Option levels matter. Level 2 (long calls/puts), Level 3 (spreads), Level 4 (naked). Many mobile-first brokers in 2025 are stricter than they were in 2021. If your strategy assumes credit spreads or calendars, make sure you’re approved before you architect the whole plan on a whiteboard.
• Margin calls and auto-liquidations: Volatility spikes, think CPI mornings or FOMC days, can swing spread values fast. Brokers will auto‑close positions to meet requirements, and they won’t pick your best leg. Put simply: set your own kill switch before they set theirs.
• Assignment risk: Short options can be assigned early, especially calls around ex‑div dates or deep ITM puts during fast drops. That can show up as unexpected stock positions midday. If you can’t manage that while you’re in a meeting, stick to defined‑risk spreads and avoid ex‑div landmines.

Reality check on 0DTE (and where my tone amps up a bit)

0DTE from 2023-2025 has been the candy bowl on every desk. It’s liquid in the indices, it’s “cheap,” and it scratches the itch to do something. But it compresses decision-time and shrinks error-margins to minutes. If your calendar says three meetings between 1 and 4, 0DTE is not a “viable” side gig, it’s a stress hobby. If you insist (I know, I’ve been there), cap size, use defined risk, and pre-write exit triggers. Then actually follow them.

Bottom line: Viable means your trading clock matches exchange liquidity, your capital survives frictions and the occasional bad print, and your broker’s rules won’t surprise you. If those three line up, you’ve got a shot. If one is off by 30 degrees, the plan can look smart on paper and still get quietly killed by the rulebook, or by an afternoon meeting that ran long.

Risk math you actually feel: losses, probabilities, and the Greeks

Here’s the paycheck translation. Short premium feels like a salary, small credits dribbling in, until it doesn’t. Asymmetric outcomes mean you can stack ten $75 credits and then hand back $600 on one bad gap. That’s not a scare tactic; it’s just the shape of the distribution. Before you enter a trade, know the max loss in dollars you’re actually volunteering. If it’s undefined (naked short calls/puts), you’re volunteering your future Saturday mornings to stress. Use defined-risk structures so the worst day has a number.

Quick napkin Greeks (the ones that hit your P&L like weather):

• Delta ≈ directional exposure. A short 0.20-delta put is about like being long 20 shares per 1-lot on SPY. If SPY drops $2, expect about −$40 before vol changes show up. Not perfect, good enough.
• Theta = time income. It feels like rent checks, but it’s paid by someone who can move out overnight. You “earn” theta as long as price and vol behave; on event days, they often don’t.
• Vega = volatility shock risk. When implied vol pops, short options get heavier fast. Put skew means downside shocks hit harder than upside pops, your short puts will feel it first.

Why harp on vega? Because event risk is not symmetric. Earnings, CPI, payrolls, FOMC, geopolitics, these aren’t line items, they’re trapdoors. Short premium with no hedge over an earnings print is asking the market, “Please be kind.” It might! But sometimes it isn’t, and then you’re paying a bill that wipes out a month of tidy credits. And yes, this year we’ve had plenty of “polite all morning, rude by the close” CPI and jobs days, if you’ve traded through 2025, you’ve felt that.

On 0DTE: it’s still popular in the indices. Cboe said back in 2023 that roughly 40-45% of SPX options volume was 0DTE, and the habit has stuck around. That matters because crowded, short-dated flow can make hedging gaps abrupt, liquidity is there until it isn’t, especially around the 2:00-3:30pm window.

Stop-losses aren’t seatbelts for options. A stop on an option can blow through on a gap and fill much worse, or not at all at the price you expected. That’s why I default to defined-risk spreads when I’m selling premium, verticals, iron condors, so tail exposure is capped. It’s the difference between “annoyed” and “account review meeting with yourself.”

Position sizing (the part most folks skip): risk per trade should be small enough to survive an ugly streak. Rule of thumb I use with clients and my own cash: keep per-trade risk to 0.5%-1.0% of equity on defined-risk spreads. If you can eat 4-5 full losses in a row and still be functional, you’re in the right zip code. If five max losses would torch 15%-20% of your account, size down. You want the math and the psychology to both survive.

Math you can run on a sticky note (simple but honest): sell a $5-wide vertical for $1.00 credit. Max loss = $4.00. Suppose historical win rate on your setup is 70% (be conservative; paper trading will lie to you). Expected value per trade = 0.70×$1.00 − 0.30×$4.00 = −$0.50. That’s negative, which means you’re either overestimating wins, underpricing risk, or both. Edge usually lives in two places: entry selection around skew/IV, and sizing/discipline on exits. Now say you improve to 80% wins and cut losers at −$2.50 on average with spreads (not always possible, but realistic pre-gap). EV ≈ 0.80×$1.00 − 0.20×$2.50 = +$0.30. That’s a business, not a hobby.

Implied volatility and skew can quietly flip the table. When skew is steep, puts pay more premium because they deserve it; you’re renting balance-sheet risk. Don’t chase the fattest credit without checking the why: steep skew + event week = higher vega and gap risk. If I sound animated here, it’s because I’ve donated enough weekends to cleaning up trades that “looked great” on a calm Wednesday and looked like a yard sale by Friday open.

Controls checklist before clicking send:

1. Max loss known and acceptable in dollar terms, not percentages you’ll forget under stress.
2. Event calendar checked: earnings, CPI, payrolls, FOMC. If you’re short premium, either hedge or skip.
3. Greeks sanity check: delta within your directional tolerance, theta you’re being paid for, vega you can survive.
4. Defined risk wherever possible; if undefined, size tiny and have a hard exit plan.
5. Size for streaks: plan to be wrong five times and still come back on Monday like nothing happened.

Last bit, because it’s true and mildly annoying, small, boring trades sized right tend to win the year. Big, exciting trades sized for the story tend to write the story’s ending, and not the kind you frame. I’ve tried both. I prefer sleeping.

Real costs in 2025: commissions, slippage, taxes, and cash drag

Net results live in the after-tax, after-fee world. What actually comes out of your pocket this year? Short answer: more than your P/L screenshot suggests.

Commissions and fees. Most mainstream brokers in 2025 still quote around $0.65 per options contract. That’s the headline number. Then you’ve got exchange and regulatory add-ons, nickels and dimes that add up, typically another $0.15-$0.75 per contract depending on the venue, the Options Regulatory Fee (ORF), and any pass-through exchange fees. Call it roughly $0.80-$1.40 all-in per contract round turn for many accounts. It’s low, not zero. If you trade 1,000 contracts a month (e.g., 50 ten-lots), you’re looking at something like $800-$1,400 in explicit costs. Not ruinous, but silently nibbling every week.

Slippage and bid-ask. This is the silent killer. On liquid index weeklies, you might see $0.05-$0.10 spreads during active hours. On single-name weeklies, especially outside the megacaps or after a catalyst, spreads can widen to $0.20-$0.60. On illiquid names, been there, regretted that, I’ve seen $1.00+ wide. You hit once or twice inside the spread and it can dwarf your commissions for the entire day. Pro tip: work limit orders, check the NBBO depth, and don’t chase stale prices two minutes after a macro headline. I almost said microstructure, sorry, what I mean is the plumbing in the order book can be shallow, so your fill moves the market.

Taxes. Most equity option gains in the U.S. are short-term in 2025, taxed at ordinary income rates (top federal bracket is still 37%). Broad-based index options (think SPX, RUT) may qualify for Section 1256 60/40 treatment: 60% long-term, 40% short-term. If you’re in the top bracket, the blended federal max is ~26.8% (0.6×20% + 0.4×37%). That gap is real. Quick note: check the contract specs, some ETFs and narrow-based indexes don’t qualify. Also, wash-sale rules can tangle frequent traders. Rolling weekly short puts across month-end? Keep a clean log with trade IDs and timestamps. Your tax software will thank you; your CPA will too.

Settlement and capital timing. U.S. equities moved to T+1 in 2024, which helps. Options premium credits typically settle fast as well, but assignments/exercises still have timing friction. If you’re short calls and get assigned on a dividend date, your stock settles on T+1, meanwhile your option leg closed the prior night. Net-net, capital can be briefly pinned, and your buying power the next morning might not fully reflect what you think you freed up. Doesn’t break strategies, just plan rolls and exits around it, especially in Q4 when liquidity pockets are weird around holidays.

Cash drag. Holding idle cash isn’t free. Money markets and broker sweep rates this year are roughly 4-5% for many retail accounts, drifting with Fed expectations. If you park $50,000 on the sidelines for two months because you’re waiting for the “perfect” entry, that’s $330-$420 of forgone yield on an annualized basis. Not the end of the world, but repeat it a few times and it’s a percent or two off your year.

Putting it together, if your weekly premium harvest shows +$1,500, after $120 of commissions/fees, $200 of slippage, and a realistic after-tax take of, say, 63% on equity options, you’re closer to $740 in your pocket. That’s the number that pays rent. This is why a lot of the “is-options-trading-a-viable-second-job” crowd gets tripped up: the gross looks great; the net pays the bills. Track it trade-by-trade. I literally keep a column called “embarrassing slippage” so I stop pretending it didn’t happen. Works, well, most days.

Playbooks that fit a busy schedule (and a real life)

If you’ve got a day job and a family calendar that looks like a flight board at O’Hare, you want trades you can set, monitor on a schedule, and not panic about at 2:17 p.m. Here’s what actually works when time is scarce and stress budgets are real.

• Covered calls & cash‑secured puts on liquid, large caps: Think names with tight penny spreads and deep options chains (AAPL, MSFT, XOM, the mega ETFs). I stick to 0.20-0.35 delta, weekly or monthly cadence depending on how noisy the tape feels. Earlier this year, money markets were paying roughly 4-5% in 2025, so my hurdle for short premium is “am I beating cash on risk‑adjusted terms?” If not, pass. Oh, and avoid ex‑div weeks on covered calls unless you’re fine with early assignment.
• Defined‑risk vertical spreads: Bull put or bear call spreads cap the downside and keep buying power sane. Typical width for me is $2-$5 on single‑name large caps, 21-45 DTE, aim for 25-35% of width in credit. If I’m wrong, the max loss is printed on the ticket. That alone lets you go to your kid’s soccer game without checking Greeks every inning. Mixed metaphor, sure.
• Event‑aware calendars/diagonals: If you can pre‑plan earnings or CPI/Fed weeks, long‑dated back month + short front month near the event can harvest the front‑month IV pop while holding a smoother theta engine behind it. I put reminders the weekend before known dates so I’m not scrambling at work. I learned this the expensive way after holding short calls into a 9% gap up, tuition paid.
• Automate the boring stuff: Use GTC limit orders for entries/exits, conditional stops for spreads (price or delta triggers), and alerts for vol spikes and key levels (52‑week highs/lows, ATR bands). If I can’t check intraday, I’ll set a 50% profit‑taker and a 2x credit risk cap on credit spreads. It’s not perfect; it’s repeatable.

Cadence that keeps you sane

1. Sunday night: queue tickets, set alerts, read the week’s event calendar (earnings, CPI, jobs, FOMC minutes).
2. Midweek 10‑minute check: fill status, risk metrics, roll candidates at 21 DTE or if profit hits 50-60% early.
3. Friday close: close winners, trim stubborn losers; don’t start new trades at 3:58 p.m. just to “stay active”. I’ve broken this rule; it cost real dollars.

What to avoid when you can’t babysit a screen

• Naked short options without hard risk caps: A single earnings surprise can erase months of careful work. Defined risk is your friend.
• Illiquid tickers: Wide spreads are a silent tax. If the NBBO is $1.05 x $1.65, you’re donating before you start.
• Revenge trades after work: You’re tired, spreads are weird into the close, and liquidity thins. Walk the dog; check it tomorrow.

Quick math gut‑check: if cash pays ~4-5% annualized in 2025, a $25,000 account “earns” $1,000-$1,250 just sitting. Covered calls or spreads should beat that on a risk‑adjusted basis, net of slippage and taxes, or why bother? People searching “is‑options‑trading‑a‑viable‑second‑job” get hung up on gross premium. Net is the only number that pays for groceries, same point as earlier.

My take: pick one core playbook (covered calls or verticals), add a calendar only when there’s an obvious event, and automate exits. You’ll miss some home runs; you’ll also keep the lights on. And I was going to add a whole thing about broker alerts here, but, honestly, just set the delta and price pings you’ll actually respond to.

A viability checklist with real guardrails

If you’re treating options as a second job, give it the same grown‑up guardrails you’d use at work. Fast, blunt, and practical, here’s the list I use with clients and, honestly, with myself when life gets busy in Q4 earnings season.

• Time budget: Commit 30-60 minutes on trade days for planning and management, pre‑open plan, mid‑day check, end‑of‑day exits/rolls. If you can’t reliably spare that on Mon-Thu (Fridays can be lighter unless you’re holding same‑day), this isn’t a go right now. And no, scrolling X doesn’t count as planning.
• Capital minimum: You need enough to size 1-2% risk per trade without touching rent money or the emergency fund. Example: on a $25,000 account, that’s $250-$500 max loss per position. If a spread’s worst‑case loss is $700, you either shrink width/quantity or pass. Quick reminder from earlier: cash pays ~4-5% annualized in 2025, ~$1,000-$1,250 on $25k, so your net options result needs to beat that or what are we even doing.
• Risk rules (in writing):
  • Per‑trade max loss: Pre‑defined and automated, OCO or stop/alert. For most part‑timers, keep it to that same 1-2% of account.
  • Daily loss limit: Stop for the day if you’re down 2-3R (i.e., 2-3 times your per‑trade risk) or ~1-2% of the account. No “win it back” after work, spreads widen into the close, especially on earnings weeks.
  • Weekly circuit breaker: If equity hits a -4% to -6% drawdown on the week, flatten risk and review. Reset Monday, not Friday at 3:58pm.
• Tooling: Use a broker with robust risk controls (position limits, OCO/OTO, and GTC stops on multi‑leg), options analytics (probability, greeks, IV rank), and assignment alerts that actually ping your phone. Commissions still matter: most U.S. brokers sit around $0.50-$0.65 per contract; add typical slippage, call it $0.01-$0.03 on SPY/QQQ, $0.05-$0.15 on single‑name weeklies. Those pennies eat your edge.
• Process:
  • Pre‑trade plan: thesis, entry trigger, target, max loss, exit conditions for price and vol. If IV crush is the edge (common around earnings this month), say it explicitly.
  • Post‑trade journal: fill in what actually happened, including slippage, theta decay vs. realized, and whether you followed the stop. 2-3 sentences is fine; just be honest.
  • Monthly P&L review (after fees and taxes): compare your net to that ~4-5% cash baseline for 2025, and to your time spent. If the hourly rate looks ugly, scale down or pause. I know I said this earlier, I’m repeating it on purpose.

Blunt rule: if you can’t pre‑commit the time and honor the stops, keep your capital in cash or broad ETFs and revisit in January. Holiday liquidity and single‑name gaps get weird in late November/December.

Two tiny clarifications because I tripped on them myself last week: 1) “Risk 1-2%” means defined worst‑case, not margin used; 2) If commissions and slippage exceed 10-15% of expected edge on a trade, skip it. And if I’m off by a penny or two on current per‑contract fees at your broker, fair, use your actual rates in the math. The guardrails don’t change.

Side hustle or stress machine? Your call, just price the risk

Side hustle or stress machine? Your call, just price the risk. Here’s the grounded verdict. Options can absolutely function as a second job, but only if you treat it like a business with capital, a schedule, and rules you actually follow. That means you pre-commit hours (not “when I have a minute”), you cap risk per trade, and you run a real P&L after fees and taxes, then compare it to the ~4-5% cash baseline for 2025 you could earn without staring at a screen. If your net falls short, your time is telling you something.

Who tends to make it work? Traders who keep it boring, disciplined, liquid, repeatable:

• Risk is tight: 1-2% of account per trade, defined worst-case, with stops or defined spreads. No exceptions because “this setup is special.”
• Liquid underlyings: index ETFs (SPY, QQQ, IWM) and mega-cap names where front-month spreads are often $0.01-$0.03 during regular hours. Cheaper friction means your edge survives.
• Real costs counted: many retail brokers still charge about $0.65 per option contract in 2025, plus exchange/OCC/reg fees that can add a few cents per trade. If that eats >10-15% of your expected edge, you pass.
• Taxes respected: short-term gains get ordinary income rates (up to 37% federal in 2025), and high earners can trigger the 3.8% NIIT. States are the wildcard. Index futures/options on broad-based indices may have 60/40 treatment, but most single-stock options don’t. Wash sales apply. Boring? Yep. Necessary? Also yep.

Who should skip the side hustle (at least for now)?

• If you need guaranteed income: options P&L is lumpy. Holiday season doesn’t fix that; late Q4 liquidity gets quirky.
• If you can’t monitor risk: you can’t sell weekly premium and then disappear into meetings. “Gamma” risk spikes near expiration, sorry, that just means your position’s sensitivity can jump fast and bite you.
• If you hate volatility surprises: earnings gaps, macro headlines, and yes, random single-name halts. If that wrecks your sleep, pass.

Call it what it is: a small trading business. If you won’t set hours, size, and rules, keep the cash in T-bills or broad ETFs and revisit in January. No shame; smart, actually.

Right now, spreads in the big ETFs are usually tight, but around events (Fed days, CPI, mega-cap earnings), slippage widens. That matters when you’re trying to grind out 0.5-1.0% weekly. Earlier this year I tried to “save” a position by adjusting late on a thin tape; the extra two cents per contract basically ate the week. Death by a thousand micro-fees.

If you’re still game, good, just do it with intent. If not, that’s a decision, not a failure. Either way, here’s what to tackle next:

• Tax planning for active traders: entity choice, 475(f) considerations, tracking expenses, and where 60/40 does and doesn’t apply.
• Emergency fund: 3-6 months in cash-like instruments (that same ~4-5% in 2025 is doing real work) before you commit to premium-selling Fridays.
• Funding order: should dollars go to 401(k)/IRA and HSA first, often yes, before a trading side gig. The after-tax hurdle rate is lower when you get tax deferral or deductions.

Net-net: it’s viable if you act like an owner-operator with rules. If you can’t or won’t, take the easy 4-5% and enjoy your weekends.

Frequently Asked Questions

Q: Is it better to start with buying calls/puts or selling spreads if this is my second job?

A: Short answer: start with defined-risk spreads. Buying naked calls/puts feels simple, but time decay chews you up if your timing isn’t tight. With spreads (debit or credit), you define max loss up front and reduce your exposure to implied volatility shocks. Practical setup: risk 0.5%-1.0% of your account per trade, prefer liquid underlyings (SPY/QQQ/large caps), target 30-45 DTE if you can’t watch screens all day, and use alerts at 1.5x your credit (or 50% of max loss on debits) as a mechanical risk tripwire. Skip 0DTE until you’ve logged months of consistent process, yes, it’s tempting; no, it’s not kind to part-time attention.

Q: How do I structure an options ‘second job’ routine around a 9-5?

A: Think in the same buckets the article lays out: research, execution windows, and risk monitoring. Research: build a weekly checklist, earnings calendar, IV rank/percentile, catalyst scan, and a small watchlist you actually know. Execution windows: pick one, open (more movement, more slippage), mid-day (quieter fills), or last hour (gamma fireworks). Consistency beats forcing trades. Risk monitoring: size smaller than you think (I know, I know), pre-define exits and hedges, and use conditional orders/alerts since retail platforms are mobile-first this year. Fewer tickers, repeatable setups, and no hero trades right before a meeting you can’t skip.

Q: What’s the difference between trading SPY/QQQ options vs SPX for a side gig?

A: From the article’s point about weekly expirations: all three list frequent expiries, but mechanics differ. SPY/QQQ are ETF options, American-style, physically settled, penny-wide most of the day, great for small size. You do have assignment risk around dividends and in-the-money shorts. SPX options are index options, European-style, cash-settled (no shares move), typically tighter spreads during peak hours but larger notional and higher buying power requirements at many brokers. For part-timers, SPY/QQQ are more forgiving for fills and position sizing; SPX is cleaner around expiration (no assignment) but can magnify mistakes because of contract size. Either way: prioritize liquidity and avoid chasing mid-price if the NBBO is gappy, slippage is a real cost here, as the article hints.

Q: Should I worry about taxes or the PDT rule if options are my second job?

A: Yes, this is the boring part that saves you money. Taxes: equity and ETF options (SPY/QQQ/single stocks) are short-term gains if held ≤1 year and don’t get 60/40 treatment. Many broad-based index options like SPX are Section 1256-60% long-term/40% short-term, marked-to-market at year-end (per IRS rules; check the contract specs and your CPA). Wash sale rules can disallow losses if you re-enter similar positions, messy with frequent trading. PDT: if you execute 4+ day trades in 5 business days and those are >6% of your trades, you’re tagged Pattern Day Trader and need $25k equity in a margin account to keep doing it. Workarounds: use cash accounts for T+1/T+2 settlement pacing, trade longer DTE, or simply throttle frequency. And keep a trade log, future-you (and your CPA) will thank you.

@article{is-options-trading-a-viable-second-job-pros-and-risks,
    title   = {Is Options Trading a Viable Second Job? Pros and Risks},
    author  = {Beeri Sparks},
    year    = {2025},
    journal = {Bankpointe},
    url     = {https://bankpointe.com/articles/options-trading-second-job/}
}