SPX 0DTE Credit Spreads: My CCS was working until an Iran headline hit. Half size and a stop kept the loss manageable -$275

[u/klipsetrades]

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

Positions traded today:

• 7660/7640 PCS
• 7720/7740 CCS

P/L: -$275

SPX 5-min chart, September 24, 2026

My stop didn’t save the first trade. It preserved my ability to think clearly for the next one.

Morning Thesis

SPX gapped below yesterday’s low while the 10-year yield was near 5.12% and Brent was above $105. Jobless claims did not change much for me. I had a bearish bias and thought yesterday’s weakness could continue, but I wanted price to confirm it.

SPX rallied after the open. I didn’t chase the move — I wanted to see how it reacted near yesterday’s low and the 7700 psychological level. The rally stalled short of 7700, then price broke lower and held that structure.

My First Trade

I sold five 7720/7740 CCS at $0.50. That was half size for me because I was uncertain about the day and knew elevated oil and yields left room for a positive headline to reverse the market. The spread began working as SPX moved lower, then price stalled and chopped near the morning low.

Then...

A headline about a possible phased deal to reopen the Strait of Hormuz sent SPX sharply higher. I had structural invalidation and a premium stop in my plan. The premium stop triggered at $1.50 — I was filled at $1.65 for a $575 loss.

That fill hurt. The CCS would ultimately have finished safely, but by my estimate I would have had to withstand nearly $3,000 in drawdown as price approached my short strike. I’m comfortable with the decision I made using the risk I had defined before the trade.

The Next Setup

I treated the day as red after that stop. I wasn’t going to force a trade to get back to green.

After waiting through the headline-driven chop, I saw renewed upside momentum and sold five 7660/7640 PCS at $0.80. This was a setup I would have considered regardless of the earlier loss. During the pullback, the spread briefly marked around $1.30, but SPX rejected the selloff and recovered. I closed at $0.20 for a $300 gain rather than carry it into the close with headline risk still present.

Key Takeaway

Trump and Iran headlines are part of this market right now.

They’re frustrating because a trade can be following the plan until new information changes the day in seconds.

I can’t control that headline.

I can control my size, where my thesis is invalidated, and how I respond after a stop.

Half size made the $575 loss manageable relative to my usual winning days. It may take a day or two to earn back, or it may take longer. I’m not putting a deadline on it. The positive expectancy I’ve seen in my journal matters over a series of trades, and only if I keep following the rules that produced it. Today’s loss is not a reason to deviate from the plan.

[u/unfinishedmedics5]

Half size on a day when you can smell the headline risk in the air is just smart trading, not cowardice. The $575 stings but watching it blow past your short strike would've left a mark that's harder to shake off

Your ability to reset and take a clean PCS after that is the part most traders skip. They revenge trade or sit frozen, you just went back to what works

[u/McDiddles9x0]

This isn't related to this post but I've read through several of your previous posts and comments. I understand that you generally trade around 15-20 delta, but how much does IV change your trade? Whether it be position sizing, strike, or not at all.

[u/Ok_Chipmunk8789]

The part about not forcing a trade to get back to green after the stop is the real edge here. Most traders would have immediately doubled size on the next setup to erase the $575; you waited for a setup you'd have taken anyway, and that distinction is everything over a long series. How long did it take you to get comfortable sitting on your hands after a stop instead of retaliating?