Paid DailyPDPaid Daily
Open the desk
tastylive

SPX 0DTE: Is the 16 Delta Range Your Best Proxy?

NowPress play to follow along0:00 / 14:15
Chapters8 segments · tap to seek
ticker lesson

Breakdown

0:00lesson

16 delta range contraction and zero DTE entry timing

  • 16 delta range changes intraday
  • Zero DTE setup entry timing
  • Market expectation of S&P range
  • Range contraction impacts strategy selection
1:38lesson

Tracking 16 delta range and credit contraction

  • Median distance from at the money for 16 delta strikes
  • Tracking 16 delta range evolution
  • Credit contraction of 16 delta iron condor
  • Volatility impact on range and credit
3:11lesson

Match rate and 16 delta strike availability

  • 16 delta strike availability up to last 30 minutes
  • Volatility in last 15-30 minutes
  • Strategies consistent throughout most of the day
4:42lesson

16 delta range and iron condor strategy

  • 16 delta range widest at the beginning of the day
  • Significant shift to downside
  • Trade vulnerability to intraday movements
  • Premium locked in at the beginning of the day
6:16lesson

16 delta range contraction percentages

  • 13-15% contraction within first hour
  • 25% contraction by second hour
  • 34-35% contraction by third hour
  • Half of opening width by 1 p.m
8:02lesson

Iron condor net credit and expected range

  • Credit collected is also impacted by range contraction
  • Premium paid for protection decreases with certainty
  • Waiting to enter trade reduces both range and credit
  • Smooth curve of credit evolution
9:42lesson

16 delta range and iron condor tradeoffs

  • 16 delta range widest at the open
  • Contraction by 13-15% in first hour
  • 25% by second hour, 34-35% by third hour
  • Half of opening width by 1 p.m
11:16lesson

Market movements and trade adjustments

  • E-mini S&P sliding, NASDAQ and Russell down
  • Reestablished crude oil put spread
  • Closed bearish position, moved to bullish in semis and software
  • Iron condor setup with downside hedge

Informational only — this is tastylive’s content, decoded by Plutus. Not Paid Daily’s advice or a recommendation. The outline, timestamps, and claims are extracted from what the creator said; verify before acting.