🦋 0DTE Iron Butterflies: In and Out Before the Bell
Today, I broke from my usual 2/7 double calendar strategy and experimented with 0DTE Iron Butterflies on SPX.
It wasn’t planned. I was watching the market drift sideways near the close — implied volatility was decent, price was stuck in a narrow range, and it just felt like a day where premium sellers had the edge.
🎯 Trade 1 – The Quick $70
Structure:
SPX @ 6392.92
- 6355P / 6380P / 6380C / 6405C
- Collected: $13.65
- Closed: $12.95
- Time in trade: 7 minutes
I entered the trade at 2:55 PM, thinking I’d hold to expiration. But barely 7 minutes later, I was already up $70, or 6.17% return on risk.
The market had barely moved — that’s the power of rapidly decaying premium near the bell. With no news risk on the horizon, I took the win.
💡 Lesson: When volatility is fair and the range is tight, even minutes matter on 0DTE days.
🔁 Trade 2 – One More Shot
Structure:
SPX @ 6394.85
- 6370P / 6385P / 6385C / 6400C
- Collected: $9.80
- Closed: $9.10
- Time in trade: 6 minutes
At 3:21 PM, I saw one more setup — slightly narrower strikes, more aggressive positioning. I wasn’t planning on re-entering, but the risk/reward looked favorable.
Closed it at 3:27 PM for another $70 profit, this time with 13.46% return on risk on just $520 at risk.
💡 Lesson: In the last 30 minutes, if you’re nimble and watching price behavior closely, these small iron fly pops can add up.
📈 Final Thoughts:
✅ Two trades, both under 10 minutes
✅ Total Profit: $140
✅ No overnight risk
✅ Zero stress
This was a fast-paced, reactive day. Not my default strategy.
⚠️ Disclaimer: This is my personal trading journal, shared for educational purposes only. Nothing here is financial advice or a recommendation to buy, sell, or trade. Please do your own research and understand the risks before making any trading decisions.