2/2 on SPX 0DTE: Trade the Structure, Not the Direction

Michael Esther
08-11

Went 2/2 on $S&P 500(.SPX)$ 0DTE today.

I didn't try to predict direction.

I simply followed the gamma levels.

Both trades came from the same rule:

Trade the structure.

Here's how each setup formed.

Trade 1: 7745/7740 Put Credit Spread

SPX was trading around 7746, with the gamma flip at 7747.6 and net GEX at approximately +$6.5B.

I sold the 7745 put, directly below the gamma flip.

The idea was simple: if SPX reclaimed and held the flip, 7745 should remain out of the money.

The gamma map helped determine the strike — not the option chain.

But there's an important nuance:

The gamma flip is not necessarily support.

The real nearby structural level was 7750, where a positive-gamma shelf was concentrated.

The framework was:

  • Above 7750: bullish structure

  • 7747–7750: decision zone

  • 7740–7745: manage the position

  • Below 7740: thesis invalidated — get out

A purple gravity node was also pulling price higher.

SPX eventually approached the 7775 area, where I closed the trade.

Trade 2: Sell the Pin

With roughly two hours left in the session, SPX was sitting directly on the 7750 pin.

At that point, the directional edge had largely disappeared.

Instead of guessing whether SPX would move higher or lower, I sold the pin.

The setup was a 15-point iron fly centered at 7750:

+7735P / -7750P / -7750C / +7765C

Entry credit: $7.75

Breakevens:

  • 7742.25

  • 7757.75

The thesis was straightforward:

If 7750 continued acting as a price magnet, the short ATM straddle would benefit from theta decay.

This wasn't intended to be a hold-to-expiration trade.

Then SPX rallied into 7756–7757, right into VWAP and the 7755 call wall.

It got rejected sharply, producing a large red 5-minute candle that pushed price back toward 7752.

That was exactly the structure I was trading.

Opened for $7.75 credit.

Closed for $5.75.

Profit: +$200 per iron fly.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment