StratBeaconSPX 0DTE Strategy
Adaptive daily options — regime-driven, instrument auto-scales
What this strategy does
Every trading day, the strategy checks market conditions at 9:31am — VIX level, overnight gap, and SPX trend — and selects the appropriate trade. In calm markets it sells iron condors to collect premium. In trending or higher-volatility markets it uses directional spreads. In extreme conditions it skips entirely.
Trades are entered between 10:00–10:30am ET. A profit exit closes positions when they reach near-max-gain. A 2× stop per side limits losses. Everything is closed by 3:45pm regardless — no overnight gamma risk.
Strategy by Regime
Sell both sides OTM. Collect premium and let time decay work. Strikes placed at 1.1× the daily expected move.
Single-sided credit spread in the direction of trend. Reduces risk vs. condor in elevated volatility.
Directional debit spread in trend direction. High IV makes options cheap relative to expected move. Buy ATM, sell 0.6× EM away.
Gamma risk is unmanageable. Protect capital and wait for conditions to normalize.
Instrument Scaling by Capital
As account equity decreases, the strategy automatically switches to a smaller instrument — maintaining the same structure with proportionally lower risk and reward.
| Available Capital | Instrument | Why |
|---|---|---|
| > $50k | SPX | Most liquid, tightest spreads, highest premium |
| $15k – $50k | SPY | 1/10th SPX size, same structure |
| $3k – $15k | QQQ | Tech-weighted, good liquidity at small size |
| < $3k | Skip | Too small for meaningful position |
Exit Rules
- Profit: Close when spread worth ≤ $0.10 (near-max gain)
- Stop loss: 2× credit received, per side independently
- Time exit: Hard close at 3:45pm ET regardless
- Emergency: SPX through short strike, or VIX +40% intraday
Skip Days
- FOMC rate decision day
- CPI / PCE release
- Non-Farm Payrolls (first Friday)
- Monthly OpEx Friday (3rd Friday)
- Earnings: AAPL, MSFT, NVDA, AMZN, GOOGL, META, TSLA
- VIX spike > 30% from prior close
- After 3 consecutive losing days
Position Sizing
Maximum daily loss is capped at 1% of account. On a $250k account that is $2,500/day. Size scales down proportionally as capital decreases. After 3 consecutive losses, the strategy pauses for 2 days.