199: Scalping SPX 0DTE Credit Spreads Using Gamma Exposure (GEX)
Can gamma exposure (GEX) help identify better entry points for scalping SPX 0DTE credit spreads?
In this episode of the Stock Market Options Trading podcast, Eric O'Rourke from Alpha Crunching breaks down a real SPX call credit spread scalp using gamma exposure to identify potential support and resistance levels.
Rather than focusing on the textbook definition of gamma exposure and dealer hedging, we're looking at how to actually use GEX data to make trading decisions.
Eric walks through a trade taken on September 21, showing exactly what the gamma exposure chart looked like at entry, why the 7700 and 7725 SPX levels mattered, and how a relatively small pullback created an opportunity to capture approximately 30% of the original credit in about 30 minutes.
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What You'll Learn in This Episode
- How to use SPX gamma exposure (GEX) to identify potential intraday support and resistance.
- Why positive gamma and large gamma exposure nodes can help define a potential trading range.
- How to identify opportunities for contrarian call and put credit spread scalps.
- Why Eric prefers selling 10-point-wide SPX credit spreads and targeting approximately 30% of the premium collected.
- A real 0DTE call credit spread trade: selling the 7735 call spread for approximately $1.75 and closing near $1.20.
- Why gamma exposure levels can change throughout the trading day and why not every market condition presents a trade.
We also take a broader look at SPX market conditions, longer-term gamma exposure levels, the economic calendar, and upcoming Federal Reserve speakers.
The Trading Approach
The idea isn't to predict every market move or hold a credit spread until expiration.
Instead, we're looking for potential support and resistance levels using gamma exposure, waiting for SPX to approach those areas, and entering defined-risk credit spreads with the goal of capturing a relatively small move.
In this example, SPX was trading near 7725, where gamma exposure suggested potential resistance. Eric sold an out-of-the-money call credit spread and closed it after a small pullback and some time decay.
It's a practical example of combining options market data, trade structure, and disciplined profit-taking.
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New episodes of the Stock Market Options Trading podcast are published every Monday after the market close. Also available on Spotify and Apple Podcasts.
For educational purposes only. Options trading involves risk, including the potential loss of the entire amount at risk on a spread. Historical results and individual trade examples do not guarantee future performance.
#SPX #0DTE #GammaExposure #GEX #CreditSpreads #OptionsTrading #SPXOptions #OptionScalping
