SPX 0dte Income Trading - March 28’22 4570/4575 Bear Call Spread
Updated
💡 March 28’22 4570/4575 Bear Call Spread
$85 Premium Received (per contract)
83% Probability of Profit (at entry)
10:15 AM Time of Entry
The market continues to chop around battling for direction. SPX is in a short term rising wedge formation which typically resolves to the downside, 4550 is a strong resistance and I expect it to hold today. However, if it does break, a squeeze to the 4600 Call Wall is possible and will make adjustments if this plays out.
My expectation today is down to sideways, consolidation zone 4450 to 4500. If we get a proper leg down, we will look to write on the put side.
15 minute momentum is negative and the RSI at 50
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.
✅ Consistent Cash Flow
✅ High Probability of Profit
✅ No Overnight Risk
$85 Premium Received (per contract)
83% Probability of Profit (at entry)
10:15 AM Time of Entry
The market continues to chop around battling for direction. SPX is in a short term rising wedge formation which typically resolves to the downside, 4550 is a strong resistance and I expect it to hold today. However, if it does break, a squeeze to the 4600 Call Wall is possible and will make adjustments if this plays out.
My expectation today is down to sideways, consolidation zone 4450 to 4500. If we get a proper leg down, we will look to write on the put side.
15 minute momentum is negative and the RSI at 50
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.
✅ Consistent Cash Flow
✅ High Probability of Profit
✅ No Overnight Risk
Note
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