How I Make Money Trading 0DTE SPY Contracts

[00:01] I'm going to be showing you how I make money trading same day options on the spy uh using less than $100. And and now with that being said, let's get to it. Real quick, just for context, this is a trade that I made live today on stream.

[00:14] Be sure to hit that notification bell. Also want to take a quick second to say options trading is very risky. Trading contracts that expire the same day are even riskier. So, uh by me putting my money in this trade, I realized that it

[00:28] could go to zero. So, with that in mind, uh let's let's get to it. This video is brought to you by Mumu. At the time of this recording, Mumu is offering an 8.1% APY on all uninvested cash and up to 60 free stocks when you sign up and make a

[00:43] deposit. And if for some reason you're not familiar with Mumu, Mumu is a worldwide brokerage and it more than likely has something for you whether you are beginner or more seasoned investor. Let me show you just how easy it can be

[00:55] to run company analysis in Mumu. Let's say I was thinking about buying Apple Apple up. I can click on company and financials right here. I can swipe down, see all this other data. If I want to

[01:10] shareholders, I can click on shareholders. I can also look at kind of their dividend payouts. I can see that the dividend yield has come down over time, but I can see that the dividend payout has increased over time. There's

[01:25] a lot more analysis and numbers to look at as well, but this is just scratching the surface. All right, so here we are looking in my Discord. Uh, first trade starts right here. I sent a screenshot at 12:02 saying I just entered a 624

[01:39] call on the spy. It's a zero DTE. At the time of the screenshot, I was up almost 10%, but it actually got lower after I bought it. Uh, bought in at 12:02 for 53 cents per share. a little over an hour later. I sold out at a dollar per share,

[01:52] locking in just under 89% profit and turning $53 into $100 in just a little bit over an hour. So, now that you see what contract I chose, uh let's actually hop in the charts and see uh what I saw for the day. All right, so here we are

[02:06] taking a look at Trading View. If you are unfamiliar with this platform, be sure to check out this video right here. Uh if you don't understand how to read candles and all that. This is going to go over all that as well as show you how

[02:19] to set this up. Even has video chapters just so that it's easy to skip back and forth. But uh getting back to it, this green box is kind of the trade I took today. I'm pretty sure I was on like the 15 minute when it happened. So uh right

[02:32] here today the market opened on this candle right here. So market opened at 62749. We actually sold off from there and it

[02:44] was kind of looking like a bearish day. All right. So, actually to start the All right. So, actually to start the day, I had this up here. I had this down here, support and resistance, but I wasn't really trading this

[02:58] morning. So, I didn't really start looking at the market until about uh right here. All right. This is when I hopped on stream today. So, I already

[03:11] was able to see all this when I hopped on stream and saw that. Okay, we broke below support. Um, first off, us being below support. Um, us breaking below support, that is that's that's bearish. I wanted to see if the trend would

[03:26] continue. I saw that we made a low already, which was this one right here. So, I moved my support down to this level because this was new support. So when we reversed right here, I noted it as a level of support and I wanted to

[03:41] time we came and visited. Each one of these candles are five minutes. Now I was just I was just on the 15. So each of the candles were 15 minutes, but kind of taking a look at it. Um pretty much all I did is I noted that there was some

[03:56] liquidity right here and I kind of marked it as a potential area of entry. So, pretty much what happened is we pulled back to this level. I took an entry and I just sat and made sure it didn't go too bad and I kind of targeted

[04:11] the next kind of area of resistance. And when it comes to finding, hey, where's that next area of resistance? Uh, whenever you see there are direction changes, swings, there are going to be areas of support or resistance. So up

[04:25] areas of support or resistance. So up here, uh, there is an area of resistance or that's that's going to be an area of support or resistance depending on which way you're coming from it. Uh, we got another swing right here. So, this is

[04:37] resistance depending on whether you're above or below it. We got another direction change right here. So, this going to be a area of resistance, support or resistance. Uh, got another one right here. Do you understand what

[04:52] I'm doing? So, um I'm kind of like looking at these swing points as support and resistance and kind of price targets. So, I took my entry right here because I saw liquidity. And liquidity is pretty much um whenever you see like

[05:08] a wick like this, like say we get a move up like this. Um here, let me highlight up like this. Um here, let me highlight it. Say we get a move up like this and it. Say we get a move up like this and then we pull back like the candle

[05:22] then we pull back like the candle candles pull back uh make kind of like a longer wick like this one right here. That's going to be liquidity. So I was targeting that and usually with liquidity we will push past it before

[05:36] reversing and going to the upside. So coming back to the five minute, I was waiting for us to come back here and I was thinking we could go up from that liquidity. So um taking a look at it. If we press play, we came down and we had

[05:54] one candle kind of come down here and push. So I waited for this first candle to see what happened. I waited for the next candle to see if it would confirm, which it did not confirm. if we got this next candle was completely below this

[06:09] red line, I probably would have cut out of the trade and took my loss, but it wasn't. So then, um, I kind of stuck around, saw what happened, and it started trending up. So, at this point, I was at profit, and because I

[06:23] was in profit, I felt a little bit more comfortable riding, and I just kind of let it go. And right about here, I notice, okay, we're getting kind of close to a resistance area, resist resistance zone. Uh because we can see

[06:39] over here, but there is also another direction change or swing point here. So, we actually pass those. And there's another one here as well as here. So, I kind of just I

[06:57] was originally trying to see if I could ride it up here. But, uh, looking at the five minute, if we let it go somewhere, once I started seeing this right here, once I started seeing these candles kind of go sideways without making progress,

[07:12] things is going to happen. It's going to blast up even higher and harder, or it's about to fall through and break the trend. So, um, you'll also notice I have this trend line here. Um, by the time we got about right here, I was able to

[07:27] identify there was a trend. Um, if you don't know how to draw trend lines or find trend lines, once again, that same video I linked earlier, um, you can check that video out. Also go over how to find trend lines. Once we broke that

[07:40] here just cuz I didn't want to watch the expiration contracts really start losing took profit and kind of ran with it. That's pretty much the trade. And what's

[07:53] That's pretty much the trade. And what's crazy is had I stayed in it longer, I could have completely lost all my money on this trade cuz it came back here and after all this time, um, I would have been completely down and out

[08:07] on this trade. One other thing I want to mention about this trade, uh, when it came to me kind of choosing a strike price. So, I'm not able to show you the show you the ones with 2 days till they expire. When it comes to trading zero

[08:20] day to expiration contracts, one element that I find to be critical to doing that is not paying too much for the contract. I want to once again note that the market here, let's go back to a 15. I want to once again note that the market

[08:35] started the day off up here. Let's pretend that the stock was down here when the market opened. If the stock were at this price at market open, the expensive. It probably would have been like $30, $40 more expensive it itself.

[08:52] like $30, $40 more expensive it itself. And had I waited for that trade, had I bought in like right at market open and waited for it to come back up to here, I may have been at break even. I may have been a little bit in the red and this

[09:06] trade wouldn't have worked for me. So, probably the biggest hack when it comes to buying zero day to expiration contracts. So, probably the biggest hack when it comes to trading zero data expirations on the spy is going to be

[09:20] waiting a couple hours, waiting for the spy to kind of set its skeleton for the day. Once again, uh taking a look at it, the spy had already come down. It had the spy had already come down. It had already dropped. It already kind of made

[09:33] a high. So, I could see that this was support during the trading day. And I knew that whatever happened right here, I could kind of react and make some money from here. So, I knew that after it has strength in one move, if it

[09:46] going to be able to profit from it. So, with that being said, that is how I make money trading zero day to expiration contracts on the spy. If you found this the like button. It really helps to support the channel. If for some reason

[10:00] you're new here and haven't already, be sure to subscribe. And last, but certainly not least, thank you so much for watching. Matthew Manuel signing off for watching. Matthew Manuel signing off and I want to change your