SPY 0DTE Options Premarket Plan 2025-03-25
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Final Trade Recommendation: PUT $572.00
Confidence Level: 67%
Technical Synthesis
Price Positioning:
Struggling at critical M5 resistance (574.38) after failing to hold 574.99 peak Closed below ascending 10EMA (574.19) on M5 for first time in 4 hours Daily chart shows SPY +2.25% YTD but rejected at 50EMA (581.67) 7 days prior Momentum Signals:
RSI divergence: 5-min RSI dropped from 80 (overbought) to 53.93 while price stayed flat Bollinger Bands: Price tapped upper band (575.11) and retreated, showing exhaustion Volume spike to 6.2M shares (7.6x average) signals local top Structural Levels:
Critical supports: 573.72 (weakness confirmation), 572.60 (target zone), 572.00 (max pain) Resistance cluster: 574.13-574.38 likely cap upside
Sentiment & Options Analysis
Max Pain: $572.00 (-0.36% from spot) aligns with heavy put OI (21k contracts at $570P) VIX Signal: Falling volatility (VIX 17.15) supports slow grind toward max pain vs. violent reversal Options Flow: 572P offers optimal risk/reward: $0.98 premium vs. $1.63 move needed to max pain (-0.36%) Minimal gamma exposure below 574 reduces likelihood of downside acceleration