# SPY Bull Put Credit Spread — 2026-07-31 1:30 PM ET

**Date:** 2026-07-31
**Session time:** 1:30 PM ET
**Asset:** SPY
**Expiration:** July 31, 2026 (0DTE)
**Direction:** Bullish — slow grind higher

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## Trade specs

| Field | Value |
|---|---|
| Strategy | Bull Put Credit Spread |
| Short put (sell) | $740 |
| Long put (buy) | $738 |
| Width | $2 |
| Credit target | ~$0.40–$0.60 |
| Max profit | credit received (20-30%+ of width with 0DTE theta) |
| Breakeven | $739.40–$739.60 |
| SPY price at time | $744.72 |
| Day range | $737.68 – $746.30 |
| Time remaining | ~2h 50m |

## Thesis

SPY is holding the upper 80% of today's range on low volume (39% of average). Low volume + upper register holding often prints a slow grind higher rather than rejection. A credit spread is preferred because theta works in our favor — every minute of 0DTE decay adds to profit. We don't need SPY to rally; we just need it to stay above $740.

## Key levels

- **Resistance:** $746.30 (today's high), $748 (mid-week), $750 (psychological)
- **Support:** $741.69 (yesterday's close), $737.68 (today's low)

## Entry

- Sell $740 / Buy $738 put spread
- Target credit: $0.40–$0.60 (20-30%+ of width)

## Exit plan

- **20% profit:** credit of ~$0.50 → sell 50% at 20% back (~$0.10 credit retained)
- **Runner:** trail remaining 50%, close if bid drops toward breakeven
- **Stop / defense:** SPY closes below $739 → consider early exit or roll
- **Max risk:** width minus credit (~$1.40–$1.60/contract)

## Why credit spread over debit spread

- **Theta works for us** — 0DTE decay accelerates all day, especially after ~3:30 PM
- Higher probability — spread is well OTM below yesterday's close ($741.69)
- We profit from the grind *and* from the standstill
- Debit spread needed active upside; credit spread profits from not failing

## Notes

- Low volume today may cap upside speed but also reduces downside momentum
- Theta accelerates sharply in final 2 hours — monitor decay rate after 3:30 PM
- If volume spikes downward, reassess the $740 support level