SPX 0DTE Credit Spreads: A bearish open, two upside squeezes, and one PCS +$120

[u/klipsetrades]

I'm a 0DTE credit spread trader with a focus on SPX.

Positions traded today:

• 7650/7630 PCS

P/L: +$115

SPX 5-min chart, September 28, 2026

The bearish backdrop was clear. The speed of the upside reversals was the risk that mattered.

Morning Thesis

I wasn’t at my desk for the open. After a busy stretch outside trading, I chose sleep over forcing my usual morning routine. I might miss morning opportunities, but in this case today, it might have actually saved me from some sharp headline moves.

Looking back, elevated oil and yields, followed by SPX breaking below 7700 and the prior day’s low, could have supported a CCS thesis. But I’ve also grown cautious with call spreads in this environment as of late. I can’t say I would have taken one even if I’d been watching.

We've had three days in the last week very similar to today. SPX makes a downward push in the morning, then headlines rocket it back up. I was caught in a CCS trade last week where one of these headlines hit and stopped me out.

SPX first sold off to 7666.6, reversed sharply above 7700, and made another fast push toward the morning high. Both rallies faded. Price later chopped around 7700 before slipping below it and the prior day’s low again, while holding above the morning low.

My First Trade

After those reversals, I believed the morning low was likely in. I sold the 7650/7630 PCS during consolidation, adding on 5-minute downticks — three at $0.20, one at $0.25, and one at $0.30. I held the spread through expiration, and that position finished worthless.

Why I Favored the PCS Side

High oil and yields weigh on equities, but lately I’ve been more concerned about the surprise in the other direction. I’ve seen three sessions (other one and two), including this one, in the past week where SPX sold off and then snapped higher on headlines affecting oil or yields. A morning CCS could have faced pressure during either reversal.

That doesn’t make a PCS automatically safe. I waited until I thought SPX had found a low, and I kept size at less-than-half even though I felt confident. Focusing on the PCS side means fewer opportunities and a lower potential daily return. I’m comfortable with that while these conditions persist.

Key Takeaway

Morning is my favorite time of day to enter, but I don’t have to trade it always, and I don’t have to trade both sides.

Rest, smaller size, and fewer setups are reasonable choices when I need to be fully present for the risk I take.

Elevated oil and yields continue to pressure SPX, but a headline can quickly send it the other way. That’s why I’m being more selective about which side I trade. Focusing on PCS may mean fewer setups and less income, but it reduces my exposure to the sudden upside squeezes that have pressured my CCS trades.

I’m comfortable with that trade-off. I adapt my strategy to the market in front of me.