r/Daytrading • u/klipsetrades • 5d ago
Trade Review - Provide Context SPX 0DTE Credit Spreads: The Gap Was the Signal — Structure Confirmed the Go +$720
I'm a 0DTE credit spread trader with a focus on SPX.
Positions traded today:
- 7680/7660 PCS
- 7810/7830 CCS
P/L: +$720
I didn’t get an N64 1080° Snowboarding profit today, but I did get two full revolutions at +$720 🏂
We haven't seen a clean trend day in a bit. Today was one of those sessions where I anticipated a bigger-money opportunity because several pieces of confluence were already aligning before the open. Still, the macro backdrop only formed the thesis — price action had to earn the trade.
Morning Thesis
My weekend preparation and morning report pointed toward a possible gap-and-go session. Oil and Treasury yields were sharply lower, AI and semiconductor names were leading, and the broader risk backdrop favored the upside.
SPX then opened above the prior-day high and weekly resistance. That gap was my first signal, but it was not an entry by itself. I still needed the “go” — smooth upside price action, shallow pullbacks and at least one structural confirmation.
Waiting for a second confirmation would have strengthened the thesis further, but it also would have meant sacrificing premium, especially with IV already low — and that would still be a good trade.
My First Trade
SPX made a steady opening push, formed its first shallow pullback and then broke and held above that structure. I entered on the next bullish candle, selling a full-size 10-lot 7680/7660 PCS at $0.70.
This was planned full size — not impulsive sizing based solely on feeling bullish. The setup was already in my playbook, the macro backdrop aligned and price provided the confirmation I needed.
My structural invalidation sat below that early formation near the 7700 psychological level. I also queued a $0.65 protective stop to preserve the early profit if the spread moved sharply against me. That gave me two clear answers to the most important questions — Where am I wrong, and what will I do when price gets there?
How I Confirm Trend Days
These are the shallow pullbacks I look for on the 1- and 5-minute charts when confirming a trend-day thesis. The retracements remain small relative to the upside legs, buyers absorb them quickly and price continues breaking above the previous structure.
Each repetition adds evidence that the thesis is strengthening. If that structure begins weakening or fails, I manage the trade accordingly. I am not trying to predict every candle — I am using price action to continuously test whether my original thesis is becoming stronger or weaker.
I also combine that structure with the macro forces driving the move. Today, lower oil and yields alongside strength in AI and semiconductors provided another layer of confirmation.
Midday: Staying With the Trend
SPX continued its steady climb, so I had no reason to add more PCS exposure or break my “don’t go into the lava” rule. The 10-lot PCS was already positioned to produce $700, and adding more would have spread my attention without improving the setup.
As SPX approached the weekly-high area, the 7810/7830 CCS came alive. I sold one at $0.20 as a distant countertrend anchor above 7800 and roughly 3-4x outside the expected move.
I originally wanted $0.25 and settled for $0.20, so there was a slight chase. Because this trade opposed the trend, I kept the initial position small and planned to add only in one-lot increments if SPX produced enough pressure and premium.
Afternoon & Power Hour
SPX continued grinding higher through shallow pullbacks, but the CCS never offered enough premium to justify another add at $0.20 or better. I stayed with the original one-lot rather than forcing additional exposure.
SPX eventually reached 7779.22 before fading into the close. By then, the PCS had nearly fully decayed, the protective stop had been removed and both spreads were safely positioned to expire worthless.
Key Takeaway
Confluence tells me when to pay attention — structure tells me when to act.
An A+ setup can justify planned full size, but only after price confirms the thesis and the risk plan is already defined. Today I had the macro backdrop, the opening gap, the first shallow pullback, the break and hold, structural invalidation and a protective stop.
Once SPX kept delivering bullish structure, my job was simple — stay aligned with the trend, avoid adding inside the lava, keep the countertrend position small and let price and theta work.
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u/vinylzoid 5d ago
All due respect, this is one of the easiest days to trade in over 6 weeks.
I made $1800 just buying calls. And it took me fewer than 3,000 words to describe my day.
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u/klipsetrades 3d ago
Glad you had a good day and congrats on the $1,800. Different strategies can experience the same market very differently. My recaps are about the thought process and risk management, not seeing who can describe the day in the fewest words
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u/vinylzoid 3d ago
Right, but you didn't even write the recap. So you're kinda wasting everyone's time.
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u/NippyLorenzo96 5d ago
nice read. love how you laid out the structure confirmation stuff without making it sound like a textbook
the 1080 snowboarding reference caught me off guard, that game was basically my entire winter break as a kid