197: XSP 0DTE Strategy: Better Risk-Reward With Credit Spreads

In this week’s Stock Market Options Trading Podcast, I break down an XSP 0DTE trade I entered at the market open and how I was able to turn the position into a risk-free trade after the market moved in my favor.

We’ll walk through the trade structure, why I started with an in-the-money call credit spread, and how adding the opposing spread converted the position into an Iron Condor with no remaining downside risk.

I also take a first look at CBOE’s newer Magnificent 10 Index (MGTN), an equal-weighted index featuring the Magnificent 7 plus Broadcom, Palantir, and AMD. We’ll look at why cash-settled index options are interesting for traders, along with the biggest issue with MGTN right now: liquidity.

Plus, this week’s episode covers:

• The current SPX market setup and important gamma levels

• What I’m watching as the market trades below 7700

• This week’s major economic and employment reports

• Tuesday’s SPX Opening Range Breakout statistics

• The return of the X Files segment

The goal is always the same: use data, backtesting, and market statistics to find practical ways to trade the S&P 500 and index options.

📊 Learn more about Alpha Crunching and our SPX trading tools, research, trade setups, and community at AlphaCrunching.com.

New episodes of the Stock Market Options Trading Podcast are posted every Monday after the market close.

#SPX #0DTE #OptionsTrading #XSP #StockMarket #SP500 #IronCondor