SPY 0DTE Options Trade Plan 2025-06-16

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SPY 0DTE Analysis Summary (2025-06-16)

Here’s a comprehensive analysis combining insights from the various models regarding SPY 0DTE options trading for June 16, 2025:

Summary of Key Points:

Market Sentiment and Technical Analysis:

Technical indicators across multiple timeframes suggest a bearish bias in the short term, particularly from the 1-minute and 5-minute charts. Price action is below key moving averages (MAs), and there are signs of overbought conditions with a consistent struggle at resistance levels around $602.75. The long-term trend remains strong; however, recent intraday data shows a struggle to maintain bullish momentum, with bearish divergences established in MACD and RSI readings approaching overbought territory. Max Pain and Options Flow:

The Max Pain level is set at $599, indicating a strong gravitational pull for SPY to drift downward as expiration approaches, consistent with trader sentiment reflected in put activity. Open interest and volume data indicate a higher propensity for puts than calls, reflecting bearish hedging among market participants.