SPX 0dte Income Trading - June 3’22 4160/4165 Bear Call Spread
SPX 0dte Income Trading - June 3’22 4160/4165 Bear Call Spread
I’m posting this trade idea late therefore it may not be actionable anymore, however, this was our trade from this morning,
💡 June 3’22 4160/4165 Bear Call Spread
$95 Premium Received (per contract)
85% Probability of Profit (at entry)
9:55 AM Time of Entry
SPX gapped down as yields spiked after a “good” jobs report (NFP)
Spread was written in the gap zone, which was not ideal but as we failed to break above 4140 (R1 Gap Zone) price drifted lower to our target of 4110 and 4100.
Based on our strategy the 15M was in the "Call Zone" signaling writing calls were more favorable than puts.
WHAT IS 0DTE TRADING?
0dte or zero days to expiration refer to the last trading day for an option contract. The Chicago Board Options Exchange ( Cboe ) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Since most options expire worthless we take advantage of this by selling credit spreads to collect premium. Our option trading strategy allows us to profit if the market moves up, down or doesn't move at all.
✅ Weekly Cash Flow
✅ High Probability of Profit
✅ No Overnight Risk
I’m posting this trade idea late therefore it may not be actionable anymore, however, this was our trade from this morning,
💡 June 3’22 4160/4165 Bear Call Spread
$95 Premium Received (per contract)
85% Probability of Profit (at entry)
9:55 AM Time of Entry
SPX gapped down as yields spiked after a “good” jobs report (NFP)
Spread was written in the gap zone, which was not ideal but as we failed to break above 4140 (R1 Gap Zone) price drifted lower to our target of 4110 and 4100.
Based on our strategy the 15M was in the "Call Zone" signaling writing calls were more favorable than puts.
WHAT IS 0DTE TRADING?
0dte or zero days to expiration refer to the last trading day for an option contract. The Chicago Board Options Exchange ( Cboe ) lists weekly options on the S&P 500 Index (SPX) with expirations every Monday, Wednesday, and Friday. Since most options expire worthless we take advantage of this by selling credit spreads to collect premium. Our option trading strategy allows us to profit if the market moves up, down or doesn't move at all.
✅ Weekly Cash Flow
✅ High Probability of Profit
✅ No Overnight Risk