2.1 KiB
2.1 KiB
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
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