SPX Spread Trader: Trading SPX 0DTE Credit Spreads
The SPX Spread Trader is our strategy for trading SPX credit spreads on expiration day. This strategy is designed for traders looking for a defined-risk way to trade SPX 0DTE credit spreads with clear rules and minimal screen time. Each morning we provide members with a clear trading plan that identifies the exact spread setup and entry limit price. The goal is simple: if SPX closes on the favorable side of the strike prices used in the spread, both options expire worthless and the credit is kept as profit.
This strategy gives traders a disciplined way to participate in 0DTE credit spreads without needing to guess or react to every tick of the market.
Understanding SPX Credit Spreads
A vertical credit spread involves selling one SPX option while buying another SPX option at a different strike price, creating a defined-risk trade. In our trading plan, we always use 5-point spreads. The margin requirement for each spread is always $500 per contract.
For example, selling the 5915 call and buying the 5920 call creates a spread with a net credit to your account. If the credit received is 2.25, then the maximum potential loss per contract is $275 ($500 margin requirement – $225 credit), and the maximum potential gain is $225.
This is an SPX credit spread strategy designed specifically for day-of-expiration trading (0DTE), where risk and reward are defined from entry. Depending on our forecast, we may trade either an SPX call credit spread or an SPX put credit spread. At its core, this is simply a credit spread: a defined-risk trade where probability and discipline determine the outcome.
For a step-by-step walkthrough of placing this type of trade, see our How to Place an SPX Credit Spread guide.
Trading SPX Credit Spreads (0DTE)
We enter a single spread trade each day, normally around 9:35 a.m. Eastern. We normally hold our positions until expiration at the close of the day. When an early exit is needed, members are alerted immediately with clear instructions.
SPX Weekly Credit Spread Strategy
The SPX Spread Trader is built on trading SPX weekly options (SPXW) using a simple 5-point vertical credit spread. Each spread requires $500 margin per contract, with maximum risk and reward defined from the start.
We enter one trade per expiration day, which now means every trading day of the week. The objective is straightforward: capture premium from time decay by holding the spread through the close, unless an early exit alert is issued. Members receive the strike prices, credit target, and structure of the trade clearly outlined in each alert.
Alerts are delivered through Telegram (fastest), with the same information also available on our website and by email. For a step-by-step walkthrough of the entry and alert process, see our Spread Trader training video.
Recent Spread Trader Results
- August 5, 2025: Held to close for +44% ROM
- August 6, 2025: Held to close for −50% ROM
- August 18, 2025: Exited early for +13% ROM
These results highlight the importance of consistency and risk management. Individual trades may vary, but the discipline of defined-risk spreads has proven effective over time.
Exits and No-Trade Days
We normally hold our positions until expiration at the close of the day. However, when conditions change, we issue early exit alerts so members can adjust in real time.
There are also days when no trade is placed. This may happen if market conditions appear unfavorable or if the desired credit cannot be achieved. Passing on weak setups is part of the strategy.
Why Trade SPX Credit Spreads?
The SPX Spread Trader offers several advantages. It requires only one trade per day and provides a clearly defined maximum risk and reward. Traders are not tied to their screens for every market move, since alerts guide entries and exits.
This approach is also practical for account growth, making it one of the most effective SPX strategies for limited budgets. Each trade requires only the $500 margin needed for a single 5-point spread, allowing traders to scale positions gradually over time. A margin account is required to trade SPX credit spreads, and traders should also be aware of pattern day trading (PDT) rules. For more detail, see our Trading With a Cash Account guide.
Auto trading is also available for this strategy for members who prefer their trades to be placed automatically through participating brokers.
For detailed performance history, visit our SPX Spread Trader performance page.
Start Trading the SPX Spread Trader
The SPX Spread Trader has been part of our service since 2017 and continues to provide consistent opportunities. If you’re looking for a structured way to trade SPX 0DTE credit spreads, this strategy may be the right fit.
Frequently Asked Questions
What is the margin requirement for trading SPX credit spreads?
Each 5-point SPX credit spread requires $500 in margin per contract. The maximum loss is reduced by the credit received, while the maximum profit is the credit itself. For a walkthrough of how these spreads are entered, see our How to Place an SPX Credit Spread guide.
Do I need a margin account to trade this strategy?
Yes. A margin account is required to trade SPX vertical credit spreads. Traders should also be aware of pattern day trading (PDT) rules and consult their broker if unsure about account requirements. For details on trading without margin, see our Trading With a Cash Account guide.
How are members notified of early exits?
Alerts are delivered through Telegram (fastest), with the same information also available on our website and by email.
*Options trading involves risk and may not be suitable for all investors. Past performance does not guarantee future results.