SPX 0dte Income Trading - May 31’22 4175/4180 Bear Call Spread
SPX 0dte Income Trading - May 31’22 4175/4180 Bear Call Spread
SPX opened in overbought territory on multiple timeframes, 5M, 15M and most significantly the 1H as price found resistance at the upper band of the rising channel on Friday.
Last week's rally did not appear to be supported by material call buying which makes rallies subject to quick reversals.
4100 is major support and price has bounced near that level. Looking for a retest and possible double bottom.
Resistance sits at 4135, 4150, 4160
💡 May 31’22 4175/4180 Bear Call Spread
$90 Premium Received (per contract)
85% Probability of Profit (at entry)
9:37 AM Time of Entry
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
SPX opened in overbought territory on multiple timeframes, 5M, 15M and most significantly the 1H as price found resistance at the upper band of the rising channel on Friday.
Last week's rally did not appear to be supported by material call buying which makes rallies subject to quick reversals.
4100 is major support and price has bounced near that level. Looking for a retest and possible double bottom.
Resistance sits at 4135, 4150, 4160
💡 May 31’22 4175/4180 Bear Call Spread
$90 Premium Received (per contract)
85% Probability of Profit (at entry)
9:37 AM Time of Entry
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
Trade closed: target reached:
Out 35