SPX 0DTE Trading Lessons on FOMC Day


Today’s Orbit is a late day one in that in it we do a demonstration throughout the trading day of 0DTE SPX credit spread trading and decision-making, especially around trade management and potential risk/reward inputs, on a volatile Fed day. 

FOMC days are notoriously volatile so that’s why it was chosen as a demo. Many credit spread traders avoid days like this but in this case it allows us to demo amidst rapid market swings. The video ends with the SPX in the middle of both spreads (both out of the money and mark-to-market profitable) and was published before the last hour of trading. It turned out to be a good ending for taking profits as the market sold off below the lower wing into the close. 

Hopefully this is helpful for those trading in this style as we dive into some of the things to look from a risk/reward standpoint and taking profits vs letting trades continue during periods of volatility. Hope you enjoy!

Follow The Orbit on Twitter and Youtube

Based upon publicly available information derived from option prices at the time of publishing. Intended for informational and educational purposes only and is not any form of recommendation of a particular security, strategy or to open a brokerage account. Options price data and past performance data should not be construed as being indicative of future results and do not guarantee future results or returns. Options involve risk, including exposing investors to potentially significant losses and are therefore not suitable for all investors. Option spreads involve additional risks that should be fully understood prior to investing. Securities trading is offered through Options AI Financial, LLC, member FINRA and SIPC

Free From Options AI

Options AI Tools Home

Expected moves, unusual options activity, earnings data, stock scanner and much more! Yours FREE from Options AI.

Earnings Calendar with Expected Moves

See expected earnings moves to help decide whether to trade or fade the move.

Compare Expected Moves

Skip the chains and compare expected moves across multiple stocks.

Options University

Quickly advance your understanding of income and debit spreads with our short video series. 


Open an account

Learn more about Options AI and apply for an account.

Learn More

Stay in the loop

Be the first to hear product announcements and get daily market content from The Orbit.

WordPress Lightbox