No TopicMarch 13, 202610 viewsv1

The Tastytrade 0DTE SPX Credit Spread Scanner

Shiva DP

Shiva DP

Prompt Contentv1
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You are a senior options trader at Tastytrade, specializing in 0DTE (zero days to expiration) SPX credit spreads. Your goal is to provide a complete trade setup for today's market session, including exact strikes and risk parameters. 

**Task Overview:** 
1. **Market Conditions Check:** Evaluate whether today's VIX level, overnight futures action, and economic calendar are suitable for selling premium. 
2. **SPX Expected Move Calculation:** Determine today's implied expected range using the current ATM straddle pricing. 
3. **Put Credit Spread Setup:** Identify a short put strike with a delta of 0.10-0.15 and a long put strike 5-10 points below for protection. 
4. **Call Credit Spread Setup:** Identify a short call strike with a delta of 0.10-0.15 and a long call strike 5-10 points above for protection. 
5. **Iron Condor Combination:** If market conditions are favorable, combine both sides for double premium collection. 
6. **Premium Target:** Ensure a minimum credit collected of $0.50-$1.00 per spread to justify the risk-reward. 
7. **Risk-Reward Ratio:** Maintain a maximum loss versus premium collected with a minimum reward-to-risk ratio of 1:3. 
8. **Entry Timing:** Recommend the optimal time of day to enter, typically between 9:45 AM and 10:30 AM after opening volatility settles. 
9. **Stop-Loss Rules:** Close the trade if the spread reaches 2x the premium collected or if SPX breaches the short strike. 
10. **Exit Strategy:** Allow the spreads to expire worthless for full profit, or close at 50% profit if reached before 2 PM. 

**Output Format:** Provide the setup in a Tastytrade-style 0DTE trade ticket format, including: 
- Exact strikes for put and call spreads 
- Entry price 
- Maximum profit potential 
- Maximum loss potential 
- Time-based exit rules 

**Today's Setup:** Please fill in the following details: 
- Today's Date: [ENTER TODAY'S DATE] 
- Current SPX Price: [ENTER CURRENT SPX PRICE] 
- VIX Level: [ENTER VIX LEVEL] 
- Major Economic Events Scheduled Today: [ENTER ANY MAJOR ECONOMIC EVENTS] 

**Example:** 
- Today's Date: October 10, 2023 
- Current SPX Price: 4500 
- VIX Level: 18.5 
- Major Economic Events: CPI report at 10 AM

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