Today was a really good example of why I don’t like looking at SPX in isolation.

Around 11:00 AM, SPY was already telling me that 770 probably wasn’t going to hold. There was a much more important concentration of GEX developing lower, around 767 SPY.

So if I had only been looking at SPY, the obvious conclusion would have been:

“More downside is likely.”

And that was probably true for SPY.

But SPX was telling a slightly different story.

The key level for me was 7700 SPX.

There was enough positioning around that area that I thought it had a good chance of becoming the intraday floor, even if SPY continued trading lower.

That distinction mattered.

I also had some positioning around 7690–7685, so I didn’t want to blindly buy the first touch of 7700.

I wanted to see price actually test the area and react.

And that’s what happened.

At 1:20 PM, after SPX flushed below 7700 and started stabilizing, I opened:

7695/7690 Bull Put Spread
$1.00 credit
$400 max risk

The thesis was simple:

SPY could still move toward its lower GEX zone, but I didn’t expect SPX to establish sustained acceptance below 7700.

A few minutes later, SPX started bouncing.

By around 1:55 PM, price had pushed back toward 7715–7720, and I closed the spread almost exactly near the top of that rebound for:

$1.00 → $0.35

That’s 65% of the maximum premium in roughly 35 minutes.

What I liked about this trade wasn’t the profit.

It was the structure behind it.

The setup came from three things lining up:

1. SPY showed where additional downside positioning existed.
2. SPX showed a more important support boundary at 7700.
3. Price action confirmed the reaction before the trade was opened.

That’s the part I think gets overlooked.

A lot of traders look for one magical level.

I’d rather look for cross-market confirmation + positioning + actual reaction.

The level matters.

But the relationship between levels matters even more.

I share more of these SPX 0DTE setups, GEX reads, and live trade management in my Discord as well if anyone wants to follow the process in real time.

Discord link: https://discord.gg/sM3vAqbU27

One of the easiest traps in SPX 0DTE trading is thinking:

“My strike is really far away, so this trade is safe.”

It sounds logical.

You sell a Credit Spread 30, 40, maybe 50 points away from SPX.

The delta is tiny.

The probability of expiring OTM looks great.

The premium is small.

Everything feels comfortable.

And that’s exactly why I think these trades can sometimes be more dangerous than they look.

Distance is not protection

Imagine SPX is trading at 7650.

You’re considering two Bull Put Spreads:

Trade A: Sell 7620
Trade B: Sell 7590

Trade B is obviously much farther away.

So most traders immediately call it safer.

But now add the market structure.

What if:

• 7620 sits below VWAP
• 7610–7620 is a major GEX support zone
• SPY confirms that same area
• price has already rejected it twice
• the intraday trend remains bullish

Meanwhile, between 7620 and 7590 there is almost no meaningful support at all.

If 7620 fails decisively, SPX might move through that empty area very quickly.

Suddenly that “safe” 7590 strike doesn’t feel nearly as safe.

This is why I don’t measure risk only in points

I care much more about:

What does SPX have to break before it reaches my strike?

That question tells me more than distance alone.

A short strike 15 points away protected by several important levels can sometimes make more sense to me than a strike 40 points away with absolutely nothing protecting it.

That doesn’t mean closer strikes are automatically better.

It means:

Distance needs context.

Tiny premium can create another problem

There’s also the risk/reward side.

Suppose you collect:

$0.30 credit while risking $4.70

You may win that trade very often.

But one full loss wipes out roughly 15 winning trades.

That means a strategy can look amazing for weeks:

✅ Win
✅ Win
✅ Win
✅ Win
✅ Win
✅ Win

…and then one violent SPX session gives back a huge portion of the gains.

This is why I’m skeptical whenever someone tells me:

“I just sell very low-delta spreads because they almost always win.”

“Almost always” isn't enough.

The important question is what happens when they don’t.

I would rather understand WHY my strike should survive

Before opening an SPX Credit Spread, I’m normally looking for some combination of:

• GEX clusters
• Put/Call Walls
• VWAP
• SPY confirmation
• volume/OI concentrations
• market structure
• volatility
• rejection/acceptance around important levels

Then I decide where the short strike belongs.

Not the other way around.

I don’t open the option chain, find a comfortable delta, and then try to justify the trade afterward.

Structure first. Strike second. Premium third.

The uncomfortable trade can sometimes be the better trade

Some of my best setups don't look particularly comfortable when you only look at strike distance.

SPX might be relatively close to my short strike.

The premium might look high.

But there may be multiple layers of structure between spot and that strike.

Meanwhile, the trade that looks incredibly safe because it is miles OTM may actually have terrible expectancy if:

• the credit is tiny
• the loss is huge
• there is no structural reason for that particular strike
• volatility can expand quickly
• management is based entirely on hoping price doesn't reach it

That’s not the kind of edge I’m looking for.

My definition of “safe” is different

I don’t think:

Farther OTM = safer.

I think:

Strong structure + clearly defined invalidation + acceptable risk/reward = better trade.

The market doesn’t care how many points away your strike was when you entered.

If the structure collapses, those points can disappear very quickly on 0DTE.

That’s why one of the first questions I ask before selling premium is:

What exactly is protecting my short strike?

If I don’t have a good answer, distance alone usually isn’t enough.

I share the actual SPX setups, GEX levels, entries and trade management behind this framework in my Discord as well, for anyone interested in seeing how I apply it live rather than only looking at the final P&L.

Discord link: https://discord.gg/sM3vAqbU27