SPX 0DTE Iron Butterfly | Small Options Account

I finally decided to try out the SPX Iron Butterfly, and man I am enjoying it a lot so far. You can have a greater risk to reward ratio, granted the conditions are right. I want to dial this in and add it as another one of my trading strategies in my tool belt. I first heard about this strategy as the Jim Olson Iron Fly, or JOIF, and modified it slightly to see what kind of results I can yield. Check out the video to see my results so far!

If you want to make your own copy of the spreadsheet that I made, here is the link to it! All I ask in return is a like on the video and that you are subscribed to my channel. Enjoy!

0:00 SPX Iron Butterfly
0:39 JOIF
1:20 Risk Graph
1:53 Tracker
2:30 1st Trade
6:24 2nd Trade
8:12 3rd Trade
10:45 Summary

I am still trading the SPX 0DTE options strategy. This involves selling credit spreads on the day of expiration on the SPX index. Trading the SPX is a very beneficial strategy to use for traders with small accounts. You can manage risk easily and can make significant profit with very little capital, all you need is the discipline to stay with it. SPX also receives a special tax treatment under section 1256 of the tax code, whereas even though it was considered a short term trade, 60% of your profit will be taxed at long term capital gains and only 40% will be taxed at short term capital gains. SPX also benefits from being a European style option which means that it cannot be exercised early, and it is also cash settled so you cannot lose more than the collateral you put up in the beginning of the trade.

Let me know below what you would like more clarification on or what you would like to see in a future video!

DISCLAIMER: I am not a certified financial advisor, nothing presented in this video is a recommendation on what you should buy or sell. Trade at your own risk. This video is for entertainment purposes only.

If you scrolled this far down into the video description. I hope you have an amazing day! You know what could make my day more amazing? A quick like on this video! Thank you for your support and for coming back to my channel.

[ModernOptions]

Just hit 400 subscribers! All thanks to you all.
If you want to make your own copy of the spreadsheet that I made, here is the link to it! All I ask in return is a like on the video and that you are subscribed to my channel. Enjoy!

[ModernOptions]

Just hit 300 subscribers! Thank you all so much for being with me on another important milestone!

[ethanstrong]

****WARNING**** For anyone trying these trades out. I highly recommend avoiding these trades in a negative gamma environment (market makers sell/buy with the direction that the market is moving, which creates wide price swings) which we are in now hence the 80 to 100 point swings for the past month. These trades are only best in a positive gamma scenario and in a lower volatility/vix structure. Hope this helps everyone out.

[DeboBrowne]

Cool cool!... thanks for the great break down

[vermontunfiltered]

Very well done thank you for the video! I have been trading Iron Flys for a couple of months. I am learning that timing the entry on this strategy is paramount. Especially if the underlying goes from sideways to directional. Its very important to determine the sentiment of the market before you place the trade. At any rate, keep up the good work!

[alexlytle]

Just ran my first test following Jimmy O exactly. 4.5% gainer. Will continue to see how it plays out. Awesome vid

[markunwin]

I've been doing this on SPY early in the day when the credits are greatest, trying for a $1 per unit profit, and start closing at 25 cents lost. Been trading with 4 units so shooting for $400 profit on about $100 risk, usually out in 3 to 3.5 hours. Have been trading with 5 dollar wings and have been opening with about a $2.50 credit

[firasgul]

Hello Cody
I wish you all the best
You are an amazing person and you deserve success🌹🌹🌹

[hmmoon]

hi, how do I place the vertical line to write the opening and closing? The video is 2years old as it went with the strategy to today January 2024? Thanks

[prebenebbesen]

Hey, I like your channel! I hope you’re doing well with your plan. I’m definitely still learning the ropes? I have minor questions that I would appreciate help on. You have customizations on your charts I’ve never seen before. You have intraday showing + horizontal bars showing your strikes, cool. What indicators do you use again? ADD?

[kfeng]

0DTE are rough but heart pound throughout. Thanks for the vid.

[hmmoon]

Hi, Is there a way to have a copy of the logbook so that you can make your annotations? Thanks

[MrBulldog]

Great video and I hope for your continued success. I was just wondering if you have any videos or list of criteria on how do you enter your SPX Credit spread trade? ie. market direction, Delta, spread, and etc. thank you so much.

[jjtrades]

Ive never tried an ironbutterfly on 0dtes but I love doing reg butterflies with a 20/25 point spread

[Suat_senocak]

Hi, is there a reason why your spreads are only 15 point wide? U can make them higher and have so much stress free trade

[NityaVink]

Hey there. Nice vid! I trade this strategy as well. I love it. I typ wait approx 15 mins to open it. Take 2-3 contracts with 50 wide wings.

Then take first off table at 100-150, 2nd at 200-250 and if they are both out within 1 hour then 3rd one is a runner. I use conditional orders to close out if it goes above or below a specific price point to cap in max profs. I use an ask order + .15 so it gets fillled.

🙂

[wowme]

I liked the video, but how do I turn off the video insert of you talking? I'd rather see the whole chart or other info on the screen.

[DPS_CountJame]

Hi- can you let me know how you enter a stop loss with a spread (or iron butterfly) ? Thanks

[jamesdean]

1. Why do you set your stop loss at the break even amount? The BE is only the BE at the end of the day and not during. So this spot seems arbitrary. It isn't an actual "break out" if it crosses your BE lines as those lines are not actual technical indicators.
2. How do you determine when you open and when you close? Do you open at some technical indicator and close when you are satisfied with the profit?

[vatreni]

soory, if this has already been answered, but have you considered rolling in the same day to avoid a loss?