---
title: 'How to Profitably Day Trade SPY Options (Cheat Sheet)'
source: 'https://youtube.com/watch?v=PpLmLmTqCiQ'
video_id: 'PpLmLmTqCiQ'
date: 2026-07-21
duration_sec: 725
channel: 'Chad Trades'
---

# How to Profitably Day Trade SPY Options (Cheat Sheet)

> Source: [How to Profitably Day Trade SPY Options (Cheat Sheet)](https://youtube.com/watch?v=PpLmLmTqCiQ)

## Summary

This video provides a comprehensive cheat sheet for day trading SPY options, focusing on supply and demand levels used by institutional traders. The presenter shares a real trading day, explaining entry and exit points, risk management, and the importance of confirmation before taking trades.

### Key Points

- **Strategy Overview** [00:01] — The main strategy involves identifying supply and demand zones on higher timeframes, then zooming in for intraday trades with confirmation.
- **Institutional vs Retail Trading** [01:13] — Institutions trade based on supply and demand, and 90% of them make money, while 90% of retail traders lose money. The goal is to think like an institution.
- **Zoom Out First** [01:39] — Always start by analyzing higher timeframes to identify key levels, then zoom in to decide whether to take a trade.
- **Drawing Supply Zones** [02:22] — Supply zones are drawn from the wick to the body of a candle, especially where a big move down occurred. Example: a zone from 417.51 to 416.13.
- **Confirmation is Crucial** [03:19] — Being in a supply zone is not enough; wait for confirmation (e.g., rejection at the level, bearish candle close) before entering a trade.
- **Pre-Market Rejection as Confirmation** [05:50] — The first confirmation was a rejection of the supply zone in pre-market. After market open, another rejection and a bearish close on the 5-minute chart confirmed the trade.
- **Trade Execution and Risk Management** [06:31] — Entered half position after confirmation, took partial profits, moved stop to break-even, and got stopped out on the runner. Net profit: ~$585.
- **Multiple Tests of Supply Zone** [07:12] — When a supply zone is tested multiple times, institutional limit orders may get filled, reducing the likelihood of a breakout. After two tests, wait for the next level.
- **Second Trade Setup** [08:09] — After the first trade, waited for the next supply zone. Entered when price leveled out with confirmation, took partial profits, and again got stopped out on the runner.
- **Consistency Over Big Wins** [10:51] — Focus on quality over quantity. Keep losers small and let winners run. A big day once a week or two can lead to consistent profitability.

### Conclusion

The key to profitable day trading SPY options is to think like an institution by using supply and demand zones, wait for confirmation, manage risk with partial profits and break-even stops, and focus on consistency rather than chasing every trade.

## Transcript

showing you a full cheat sheet on exactly how I day trade spy options so not only am I going to be showing you the main strategy I use to day trade spy options but I'm also going to be showing you the exact trades I took today how
much money I made exactly where I entered where I exited all the stuff you need to know to properly day trades by option so hopefully you get some value and some education from this video okay so today is Thursday February 2nd and I
end up making around 585 dollars today so not my biggest day but what I did remember you're not going to win every trade you're not going to make a huge you're going to get stopped out on your Runners right and that's okay the most
actually follow your plan whether you're red green you have a somewhat good day a somewhat Bad Day right that's the most important thing so anyways let's actually go into the charts and show you um kind of what I was looking at so like
I said for this SPY trading chichi so I day trade options for the Spy market and you know the majority of my trades I'm looking for supply and demand now the reason why I like supply and demand is because this is how big institutions
trade right you don't want to trade like the typical retail Trader because retail the typical retail Trader because retail 90 of them lose money okay and with institutions ninety percent of them make money right and then only ten percent of
flipped okay so you want to think like an institution you want to think like you know the big money right not the little money so what we're gonna do is we always want to zoom out into the bigger time frames look at your identify
your key levels and then you can go intraday to actually take your trades going to take the trade or not right so always zoom out and then slowly scope in on whether you're gonna actually take the trade or not so as we can see we've
had a big rally the past few days we have the fomc meeting um I believe yeah it was yesterday we had this Big Spike spike up so obviously you know we're a little bit overbought obviously that doesn't really matter we
know who knows right you can't really predict what the Market's gonna do all you can do is you know look at those key levels look at those key support ranges so as you can see we have one key Supply Zone okay so we're looking at Supply
zones since the market is up okay there's no demand zones because you know obviously the price is going up so anyways as we can see you know usually the way I draw my Supply zones is always from the wick to the body okay and you
want to look for big moves so as you can see when we got a wick to the body there was a big move down so this tells me this is a supply Zone this uh basically notice here is so you could have drew this before you saw any of this
what you'll notice here is what happened when we immediately hit this you know this body right right where the right where the candle closed um we hit it a few days ago or I believe a week ago as you can see we had a big
move down so as you can see from fomc you know this basically just pushed pushed it up dramatically so typically with big news days like fomc for example uh you know technicals don't matter as much right they're not always accurate
so this is why just because you're in a supply Zone you should never just take confirmation this is the one of the mistakes I have made in the past right we're in a supply Zone we're in a support we're in a resistance let's take
the trade no you have to make sure you get confirmation right so finding the key levels is first and then the confirmations just keep it as simple as that so now let's go over today right so today was these two candles right here
around the four hour chart the Market's still open at the time of recording this video I already played some trade grades and like I said I end up making just under 600 today so anyways let me go ahead and zoom out here okay so we want
to look at this next Supply Zone as you can see I have this uh let me move can see I have this uh let me move myself I have this what is it that 4 14 to 415 area kind of marked here so let
me actually go and see when is the last time we were at those levels okay as you from this Mark um again we broke through that that doesn't matter and the last time we were at the level we're at now or where we
opened today was um back in August okay so we're at this range so let me zoom into this range real quick and now we can do the same thing we can draw this little rectangle from where the wick to where the body of
the candle is okay so this is basically you know that uh 4 17 51 to that 4 16 13 okay so remember those numbers now we're gonna go to where we open today okay so
now I'm gonna zoom in a little bit I'm gonna go to the one hour time frame okay so what I did this morning is I drew this red box this Supply Zone based on that four hour time frame um I just showed you earlier right this
box right here so anyways let me go back here and let's go ahead and zoom into the charts we're gonna go to the 15 minute time frame now so anyways as we this is why I drew the box right here and then obviously you know the top of
this box was that level where I just showed you where we hit back in August Wick was remember the wick to the body so this is where I got the lower level Wick that we got like four months ago
the last time we're at this price range so before the market even opened I kind of knew where the supply Zone was so now if we zoom into the five minute chart trade because we're near the level we want to get some confirmation that the
trade is actually going to work out so what was our first confirmation well once we rejected this in the pre-market so I trade options so I can't trade in the pre-market so as I was watching this that's you know 9 30 Eastern time this
morning I saw we would direct this once so that is a confirmation for me so once we got this we got this opening candle um we kind of looked down we Wicked up so nothing really happened here as you can see we came up all the way to where
we rejected and pre-market and we came down and then we closed right here at down and then we closed right here at this 4 14 59. so immediately when we got this close that for me was a confirmation okay so this is when I took
um and you know I kind of wrote this down here I took like half of my profits here I was hoping we would get a reject all the way down to this pre-market uh kind of where we're trading we never got there so I just put a stop loss I had a
break even and then we Wicked back up right and I got stopped out okay so that was kind of my trade today it was a little bit choppy market now the next thing I was looking for because I did take another trade after this was you
know are we going to retest this level what happens if we retest this level well keep in mind right we already tested this level twice so what that tells me is back three months ago where I showed you how we got this you know
high level a lot of Institutions they want to sell and buy at a certain price right so a lot of these institutions they're training with tens of millions of dollars hundreds of millions of dollars so they can't get all their
orders filled at once so a lot of times they'll leave limit orders basically where that price was now a lot of these limit orders got filled because we sold off right here so usually when we test the supply zone two three times that's
where you know a lot of those limit orders got filled and it just wasn't a we're able to break out of it so again even though we tested this look at this strong candle I want to wait for this candle to see what happened here I want
can see the candle closed we had a strong bullish candle so that means there is no confirmation to take this trade again so what do I do right I waited for the next level the next level was kind of up here this is another
Supply Zone I saw from like four or five months ago and as we can see we're kind of just trading in this range all day so basically what I did was again I was looking for a confirmation so I actually entered right here just because we saw
it start to level out so whenever you start to see a level out and you get some confirmation I believe I entered my first position here and then once we came back up to this level right here I was gonna stop out right above this way
okay so let me just draw a line so you can see that my stop was right above this Wick today again my first entry was right around here once we got this closed and then I took another entry right around here so I got a little bit
better entry and I end up writing this down so once we got back to this level that we were here earlier uh this is where I took half of my profit so I took with around four thousand dollars today I took two thousand dollars off made a
few hundred bucks from that awesome now what I did with the rest of my position was again I was hoping we get a flush back to this level I know it'll eventually happen but maybe not today okay so I basically again I put my stop
at a break even so basically what's gonna happen is either we're gonna get down to this level or I'm gonna get stopped out and what do you know what happened fully transparent here I got stopped out once again but luckily since
I trimmed half of my position I was still able to make a profit on the two we're kind of just floating around this level we actually made a new high around what happens next right we're still floating around this level uh so for me
there's no confirmation we're still making these higher highs so that's kind that's all ultimately how I made you know like I said just under six hundred dollars today trading all right so let's go and recap this video so again the
first thing you want to do is you want to look at those key supply and demand levels so as you saw from the example of the trade I took today right we had that key Supply level marked up the price was super bullish over the past few days so
Supply level we're looking for a place where the price can start to even out and potentially have a reject where we can make profit you know trading put options that's where you can start looking for multiple confirmations so as
we saw from the example today my first confirmation from that Supply Zone that we already had marked was we hid it in the pre-market level and we immediately rejected and then the market opened we came up to it we rejected it again then
we got that closed for that five minute candle as we can see it was a bearish candle that gave me a confirmation to actually take the trade write it down a little bit and we made a little bit of money on that trade again we got stopped
out on on our Runners which is fine right as long as you're following your about trading because what will happen sometimes is that Supply zone right if you take it like I did today sometimes it'll go all the way down to that demand
can start having those big days and if you have those big days you know once per week once every two weeks and you keep your losers small you have some you that's where you can start to be a consistently profitable Trader day
trading SPY options by focusing on quality over quantity following your understanding your reward and all that good stuff that I share in this video so video that's going to be my cheat sheet for day trading SPY options and real
quick before you go if you want a free copy my day trading guide this is going properly day trade in the stock market it's going to give you some more to go back and look at this guide at any time and download it to your phone to
anyways guys if you want a free copy of this guy all you have to do is go to the just head over to this link right here that being said if you guys are new be sure to subscribe to the channel and as always trade smart trade safe and I will
always trade smart trade safe and I will see you in my next video