Paid Daily · Resources · Ask Plutus
Tom Preston Says Start 0DTE With SPY, Not SPX, Here's Why
NowPress play to follow along0:00 / 10:40
Chapters5 segments · tap to seek
ticker lesson
Breakdown
0:00lesson
Options after corporate actions
- Reverse stock split affects option contract delivery
- Check OCC for adjusted contract specs
- Split reflects in deliverable shares or strike prices
- Non-standard options may have lower volume
2:27lesson
Trading non-standard options
- Open interest remains in adjusted options
- Avoid opening new positions in adjusted shares
- Stick to standard deliverable options
- Use OCC or platform tools to verify specs
4:40lesson
Managing volatility in options
- Volatility spikes can impact short positions
- Wait for volatility to return to normal
- Manage P&L based on stock price movement
- Roll positions if loss is significant
6:56lesson
Choosing zero DTE indices
- SPX, SPY, ES, and MES differ in settlement
- SPY is cash settled, others are stock settled
- SPY has tighter spreads for beginners
- Start with SPY for low-risk trades
9:04lesson
Zero DTE trading strategy
- SPY offers tighter spreads for beginners
- Iron condor example with $171 max risk
- Adjust to smaller spreads for lower risk
- Progress to SPX after gaining experience
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.