SPY 0DTE Options Trade Plan 2025-03-17
SPY 0DTE Trade Plan for 2025-03-17
1. Technical Analysis Synthesis
Price vs. MAs: 5-minute: Price ($565.40) > 10/50/200 EMAs (562.77/561.35/559.08) – bullish short-term momentum Daily: Price < 10/50/200 EMAs (567.91/587.81/566.92) – bearish longer-term structure RSI: 5-minute: 71.26 (overbought) Daily: 37.81 (neutral, no extreme) Bollinger Bands: 5-minute: Price near upper band (563.69), suggesting short-term exhaustion Daily: Price near lower band (546.07), but middle band (584.58) far above Key Levels: Immediate support: $560.23 (5-min), $549.68 (daily) Resistance: $572.99 (5-min), $597.34 (daily)
2. Market Sentiment Integration
VIX: 21.77 (falling, but still elevated) – neutral/slightly bearish News: Mixed (stagflation risks, S&P 500 target cuts) – bearish bias Options Data: Heavy put open interest at $561 (max pain), with $560 put showing high liquidity ($0.59 premium). Max Pain: $561.00 (-0.78% below current price) – gravitational pull downward likely.
3. Directional Determination
Moderately Bearish
Key Drivers: Overbought 5-minute RSI + price near upper Bollinger Band Max pain ($561) below current price Bearish news/S&P 500 target cuts
4. Options Strategy Selection
Buy 0DTE SPY $560 Put
Premium: $0.59 (slightly above ideal range but acceptable due to max pain alignment) Distance from Price: -0.96% (reasonable for 0DTE) Risk/Reward: Max Risk: $59 per contract (premium paid) Target Gain: 50-70% ($0.89-$1.00 per contract)