0-3 DTE Credit Spreads + Debit Spreads + Long Calls & Puts
Day Trade / Scalp – Options on SPX + QQQ
Credit Spreads / 0-3 DTE
We trade in the structured channel direction using a multiple time frame moving average approach with the 5-day average as our point of control. We typically sell SPX ATM + ITM credit spreads 5-10 when market is expanding and contracting. Most credit spreads are 0DTE
- Hedged Selling Calls and Puts (vertical spreads)
- Multiple trades per day + “Let it expire”
- Scalping + Position Trading
- SPX, SPY + QQQ (no PDT rule for options on ES & NQ futures)
Debit Spreads / 0-7 DTE
We day trade and swing trade debit spreads in SPX, SPY, QQQ, TSLA, and others.
When we expect a rise in volatility for multiple days in a row in the same direction, we use debit spreads for a directional hedged bet. Utilizing the 0-7 DTE options is a great way to capitalize on expanding volatility while looking for next day gap open.
BULL CALL
Limited Risk + Limited Potential / Used in a directional trade to the upside while lowering cost of the position. Click here for example
BEAR PUT
Limited Risk + Limited Potential / Used in a directional trade to the downside while lowering cost of the position. Click here for example.
Risk Vs Reward
Purchasing short term options can generate the highest % gains, which has a direct correlation to the high risk. Options can and will expire worthless (100% loss) Click here for full risk disclosure.
Position Sizing
Buying short term options should only be done with high risk “gambling” money. Short term options have a high probability of expiring worthless. Position sizing is very important and we never increase size based on emotion. Click here to learn more about position sizing.
Long CALL + Long PUT (0-45 DTE)
We day trade and swing trade long calls and puts as a unhedged high-risk directional bet. Unhedged calls and puts hold the highest overall risk, but hold the highest profit potential. Are you disciplined enough to keep the size small and hold for the grand slam trade?
Position sizing is extremely important when day trading 0DTE options as the options are expiring within hours. We position size based on the max risk of the trade, not the potential stop loss. Only the highest risk capital should be used when purchasing short term directional calls and puts.
Swing Trade (45 DTE) Targets = 80% – 300%
Day Trade (0DTE) Targets= Static Scalper + grand slam 400% or greater
Blog
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Secrets to Thriving in the 0DTE Trading Environment
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Credit Spreads vs. Directional Plays: What to Choose
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Building a Winning Strategy in the Options Market
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360WallSt
0-3 0DTE Option Trading
188 Hood Avenue, Suite 210
375 Pine Street, Unit 5
+1-800-555-0199
info@360wal