0DTE Example Trades

Whether you're new to zero-days-to-expiration or scaling an existing approach, understanding the fundamentals of 0DTE options strategy is essential before you trade live capital. This guide covers The best way to understand the 0DTE meaning is to look at real-world examples. Let's break down three different 0DTE example trades using real numbers to see exactly how they behave throughout the trading day.

Example 1: 0DTE Iron Condor on SPX

Scenario: The SPX is trading at 5000 at 10:00 AM. The market is quiet, and you expect it to stay in a tight range until the 4:00 PM close.

• Trade: Sell a 0DTE Iron Condor.
• Call Side: Sell the 5020 Call, Buy the 5025 Call (Credit: $1.00)
• Put Side: Sell the 4980 Put, Buy the 4975 Put (Credit: $1.00)
• Total Credit Received: $2.00 (or $200 per contract)
• Max Risk: $300 (Width of strikes ($5) - Credit received ($2)) x 100.

Outcome: If SPX closes anywhere between 4980 and 5020 at 4:00 PM, all options expire worthless, and you keep the $200 credit.

Example 2: 0DTE Credit Spread on SPY

Scenario: SPY is trading at 500. It had a strong morning gap up, and you believe it will hold above 498 for the rest of the day.

• Trade: Sell a 0DTE Put Credit Spread.
• Legs: Sell the 498 Put, Buy the 497 Put.
• Credit Received: $0.30 ($30 per contract).
• Max Risk: $70 ($1 width - $0.30 credit) x 100.

Outcome: If SPY closes above 498, you keep the $30. If it closes below 497, you lose $70.

Example 3: 0DTE ATM Straddle

Scenario: SPX is at 5000 at 1:00 PM. The Federal Reserve is about to release meeting minutes at 2:00 PM. You expect a massive move but don't know the direction.

• Trade: Buy a 0DTE Straddle.
• Legs: Buy the 5000 Call ($15.00), Buy the 5000 Put ($15.00).
• Total Debit Paid: $30.00 ($3,000 per contract).

Outcome: For this trade to be profitable at expiration, SPX must move more than 30 points in either direction (above 5030 or below 4970).

What 0DTE Calls and Puts Mean

In these examples, the terms "call" and "put" carry the exact same definition as standard options, just highly compressed in time.

• A 0DTE call gives the buyer the right to buy the stock at the strike price today. It increases in value as the stock goes up.
• A 0DTE put gives the buyer the right to sell the stock at the strike price today. It increases in value as the stock goes down.

Reading a 0DTE Trade Ticket

When you look at your broker's platform, a 0DTE ticket will show today's date as the expiration date. It will usually have a label like "0DTE" or "Expiring Today" to warn you of the imminent expiration. Always double-check this date before hitting submit to avoid accidentally buying a 1DTE or weekly contract.

Frequently Asked Questions