How to Make Money in the SPX 0 DTE: Butterflies

In today's Trade Review video, I cover my end-of-day trade for the short covering rally that occurred in the SPX where I made $1165 in 18 minutes.

Identifying short-covering rallies by reading price action, market internals, and the options chain is how I love to place trades at the end of the day.

In this instance, I used a cheap butterfly in the SPX that cost me $195 per contract, and this gave me a closing price on the fly at $775. I did not close the trade myself, so it'll cash settle for slightly less. Since the SPX doesn't assign or exercise shares, it simply settles when it expires with the balance earned (or lost).

#spx #daytrading #stockmarket #optionstrading #optionstrading #butterflies

[divamisi]

Awesome video Danielle, thank you for sharing.🙂 Looking forward to your future videos.👍

[neysatg]

Have taken two of these at the end of the day this week since watching this video, both profitable. Cautiously proceeding.

[nixodian]

4:21 looks like the delta data is wrong? eg 4950 should be >50 delta? not 100? TOS data questionable?

[elroyblackbean]

Lots of great stuff here. Thank you for the insight and experience.

[fotospatinaje]

Gentlemen this is pure gold, thank you for sharing your wisdom 🙏🙏🙏🙏

[IncomeAcumen]

Great video, maybe I am missing something here at 5:13 into the video. You paid $1.95 per contract on 4940 strike, and you said it went to $7.775 price...however, the line directly below that for 2 contracts shows 2.93 Trade price, 13, 800 mark; where are these numbers coming from...did you pay $2.93 for 2 contracts and it went to 13, 800?

[jzeb]

Hey Danielle! What happens to the call you sold that ended up in the money if you let it cash settle? Wouldn't that get assigned? Thank you ! Love your trading style, just getting started!

[nixodian]

3m45 got in at 1242pm is that ET? best time to get in butterfly ~12-2pmET?

[rgasta]

Danielle when you said " I should have gotten in earlier with a $20 wide", can you explain why you didnt? I see the same price action triggers appear. hope you can share more on this. Also why waiting until the close to enter the trade?, price had flattened/formed resistance earlier in the trading session. Hope you reply. Thank you ❤

[albay]

what if you reach 4950 in 15 minutes ? is this profitable or you actually need to wait for the close?