💡 SPX 0DTE Trading - Feb 27’23 4040/4045 Call Credit Spread
💡 SPX 0DTE Trading - Feb 27’23 4040/4045 Call Credit Spread
Feb 27’23 4040/4045 Call Credit Spread
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Nearly every metric this morning is supportive for higher prices, ADD +2000, Cyclicals outperforming Defensives, a weaker Dollar and a decline in measures of implied volatility such as the VIX.
Nonetheless, SPX is already up 1.2% with both the 5M and 15M in overbought territory.
Gamma 1-Day Implied Move 0.99% (±39 pts)
VIX 1-Day Implied Move 1.36% (±54 pts)
My base case today is that markets are going to consolidate at the $4,000/$4,015 zone which should act as a magnet again this week.
When/if markets enter short term oversold territory we will consider a Put Credit Spread. We also like a 0dte butterfly centered around $4,010. Keep in mind there is fairly large downside gap to $3,970.
This CCS is counter trend and therefore we may experience some short term pain, however, we will make adjustments if needed.
Feb 27’23 4040/4045 Call Credit Spread
Premium $95
Nearly every metric this morning is supportive for higher prices, ADD +2000, Cyclicals outperforming Defensives, a weaker Dollar and a decline in measures of implied volatility such as the VIX.
Nonetheless, SPX is already up 1.2% with both the 5M and 15M in overbought territory.
Gamma 1-Day Implied Move 0.99% (±39 pts)
VIX 1-Day Implied Move 1.36% (±54 pts)
My base case today is that markets are going to consolidate at the $4,000/$4,015 zone which should act as a magnet again this week.
When/if markets enter short term oversold territory we will consider a Put Credit Spread. We also like a 0dte butterfly centered around $4,010. Keep in mind there is fairly large downside gap to $3,970.
This CCS is counter trend and therefore we may experience some short term pain, however, we will make adjustments if needed.