Types of SPX 0DTE Credit Spreads:

1. Call Credit Spread (Bear Call Spread) – Selling a lower strike call and buying a higher strike call when expecting SPX to stay below a certain level.
2. Put Credit Spread (Bull Put Spread) – Selling a higher strike put and buying a lower strike put when expecting SPX to stay above a certain level.

Types of SPX 0DTE Butterfly Spreads:

1. Call Wide-Range Butterfly– A Call Wide-Range Butterfly uses call options with wide wings (typically 20–50 points apart). This setup is used when expecting SPX to move upward toward a target zone by the close. The wider range provides more flexibility for intraday movement while keeping risk defined.
2. Put Wide-Range Butterfly – A Put Wide-Range Butterfly uses put options with wide wings (20–50 points apart). This structure is used when expecting SPX to move downward toward a target zone. The wider wing distance increases the probability of SPX finishing inside the butterfly while keeping the trade low-cost and risk-defined.

Key Aspects:

• Time Decay (Theta): Rapidly erodes premium as expiration nears, benefiting sellers in credit spreads (e.g., bull put or bear call) by allowing premium collection; for butterfly spreads (long debit), theta accelerates decay around the central strike, enhancing profitability if the SPX pins near the body.
• High Risk-Reward Ratio: For credit spreads, profit is limited to the credit received, with risk capped by the spread width minus credit; butterflies offer asymmetric rewards (e.g., 2:1 or higher in long setups) with defined max loss equal to debit paid or width minus credit in irons, but require precise price targeting.
• Market Sensitivity: Both strategies react strongly to intraday moves due to delta (directional exposure) and gamma (convexity changes); credit spreads have wider breakevens but higher gamma risk near shorts, while butterflies amplify gamma at wings for sharp adjustments around the pin zone.
• Ideal Conditions: Works best in range-bound markets with low volatility spikes; credit spreads suit mild directional biases in choppy sessions, while butterflies excel in pinpoint scenarios.

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Benefits for Subscribing to “Option A Day” Daily Alert

Identify Vertical and Butterfly Spread to trade

We use an advanced algorithm and criteria to identify 0DTE Credit Spread that are potentially bullish breaking resistance or bearish breaking support level. Two (2) vertical spread alerts are delivered daily during market hours. One (1) alert are delivered daily 3 hours before market close (1PM EST).

Trade using SPX

Trade SPX with confidence in the world’s most liquid marked. Enjoy seamless entry/exit, cash settlement, and favorable tax treatment (60/40).

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Executing winning trades consistently to sidestep emotional aspects. Whenever you incorporate a trading system you must take out the emotional aspects. Having clear cut trading guidelines helps eliminate poor trading decisions.

Short term trading

The trade alerts are designed for short-term trading, with both entry and exit occurring on the same day to avoid overnight market exposure. Precise timing is critical to the success of each vertical and butterfly spread. Alerts and updates will be sent via email and Telegram at any point during market hours.

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