Trade Plans — Market Crafters
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Trade Plans &
Options Education

Institutional-grade strategies, frameworks, and market breadth tools. Click any strategy or module to expand the full playbook.

01
📉
0DTE Trend Following Playbook
SPX / NDX zero days to expiration — intraday credit & debit spreads
0DTE OptionsSPX / NDXCredit Spreads15m + 5m Charts
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Core Philosophy

Our approach is brutally straightforward: focus on high-probability, short-term trades with strict risk controls. No chasing, no emotional decisions — just disciplined execution.

Honesty check: Trading is probabilistic — wins aren't guaranteed, and losses are inevitable. If you're not prepared to lose what you risk, step away.

What We Trade
Primary
0DTE options on SPX (broader market) and NDX (tech-heavy exposure). Ultra-short-term intraday bets expiring same day.
Cash Management
SPYI ETF — parks idle capital. Yields ~12% annually via covered call premiums while waiting for setups.
Hedge: VIX Calls
Buy OTM VIX calls to hedge sharp downside moves in SPX.
Hedge: E-Mini Futures
Buy or short e-mini futures intraday once a credit spread hits a 2× credit received loss. Exit futures at entry if price recovers; hold to 4pm if it doesn't.
Trend Determination — 15 Minute Chart

Plot the 8 EMA (yellow) and 21 EMA (purple) on the 15-minute chart.

8 EMA > 21 EMA = Bullish bias   8 EMA < 21 EMA = Bearish bias

Check the 15-minute chart just before 10:00 AM ET to lock in your directional bias for the session.

Entry Timing — 5 Minute Chart
  • Wait for the Opening Range (9:30–10:00 AM) to pass before entering.
  • OR high/low acts as support/resistance after a break.
  • Use 8 & 21 EMA on the 5-min chart for precise entry.
  • Wait for a pullback or touch to either EMA with a confirmation bar that the trend is intact.
  • Example (Bearish Dec 12): 10am bar touched 8 EMA, sold off, closed below OR. 10:05am → open Call Credit Spread.
Trade Exits
Conservative Exit
Bearish: exit when RSI > 55 on the 5-min chart. Bullish: exit when RSI < 45.
Trend Exit
Exit when 8 EMA crosses over 21 EMA (keeps you in the trade for the full session on strong trend days).
Daily Strategy Selection
  • Neutral / Range-Bound Days: Sell credit spreads exclusively on SPX. Capitalizes on theta decay within a defined range. NDX excluded — volatility exceeds personal risk tolerance.
  • High-Conviction Trend Days (7 breadth indicators align): Deploy NDX debit spreads (long call verticals bullish, long put verticals bearish) to harness elevated volatility and gamma acceleration.
02
⚡
3-Indicator 0DTE Momentum Strategy
Bollinger Squeeze + TICK + ATR Trailing Stop on individual underlyings
0DTESPY / QQQ / NVDA / TSLAMomentumThinkorswim
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The Three Indicators
IndicatorSettingsPurposeRequired for Entry
Bollinger Squeeze (TTM)BB (20,2), KC (20, 1.5 ATR); red dots = squeezeIdentifies volatility contraction → impending expansion≥5 bars of squeeze (red dots); longer = stronger
TICK (Market Breadth)Raw $TICK (SPX) or $TICKQ (Nasdaq)Confirms sustained buying/selling pressure across marketLong: TICK holding >0 (80–90% bars positive). Short: <0. No choppy zero-crossing.
ATR Trailing Stop3-period, 1× ATRDynamic trend confirmation & exitPrice closing beyond stop in direction of trade
Setup & Instruments
Instruments
SPY, QQQ, SPX, NVDA, TSLA, META, GOOGL. Prioritize indices for tightness; single stocks only on extreme beta days.
Risk Per Trade
0.5–1% of account max. E.g., $500–$1,000 on a $100k account. 0DTE gamma can wipe that fast.
Entry Rules — All Must Align
  • Start with TICK context. Don't hunt squeezes in chop.
  • Wait for squeeze release + TICK confirmation.
  • Aggressive entry: Buy calls/puts on first 5-min close beyond ATR stop in direction of trend.
  • Conservative (preferred): Wait for breakout of consolidation range (e.g., high/low of current move or opening range).
  • Position sizing: Half on initial flip; add remaining half on confirmed breakout.
  • Option selection: OTM strikes with decent volume/OI; target 20–50% OTM for leverage.
Management & Exit Rules
  • Trail the ATR stop religiously — no discretion.
  • Exit immediately on first 5-min close against the stop.
  • No hard profit targets — let winners run on trend days.
  • Hold if momentum pauses but stop not hit, only if TICK remains extreme.
  • Close everything by 3:30 PM ET — never hold through expiration unless massively green.
Risk Management — Non-Negotiable
  • Trade only when TICK shows clear trend. Avoid first 30–60 min if choppy.
  • Max 2–3 trades per day. Overtrading kills.
  • No revenge trading after a loser.
  • Skip if squeeze <5 bars or TICK <80% directional bars.
  • Hard daily loss limit (e.g., 3% account → stop for the day).
Example Trades
QQQ Short
Squeeze + sustained negative TICK → aggressive short below ATR stop → trailed to capture full downtrend → exited on first close above stop.
NVDA Long
Morning squeeze → TICK flips strongly positive → bought calls on breakout → trailed to near high-of-day.
03
🏛
Supply & Demand Zone Strategy
Institutional order flow — price memory, zone flips, and break & retest
All TimeframesAny Liquid TickerHigh ProbabilitySwing + Day
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Core Idea

Price respects zones where big money bought (Demand/Support) or sold (Supply/Resistance). When price returns, expect a reaction. Clean breaks usually flip the zone.

Key Definitions
TermWhat It IsTrade BiasEntry
Demand / SupportBig green candles, long lower wicks, volume spikeBullishBuy calls / long stock
Supply / ResistanceBig red candles, long upper wicks, volume spikeBearishBuy puts / short stock
FlipBroken Demand becomes Supply (and vice versa)Reverses biasEnter opposite direction on retest
How to Find the Zones
  • Pick any liquid stock or index (SPY, QQQ, NVDA, AMZN, etc.).
  • Day trading: 5-min or 15-min chart. Swings: 1-hour or daily.
  • Scan for: multiple wicks at same area, large-bodied candles, volume spikes.
  • Draw a zone not a line — usually 0.5–2% wide depending on volatility.
  • Pro tip: TradingView's free "Support Resistance Channels" by LonesomeTheBlue is a great starting point.
Exact Trading Rules
Long Setup (Call / Buy)
1. Price approaches Demand zone
2. Look for rejection (pin bar, engulfing)
3. Enter on confirmation candle close inside zone
4. Stop: 0.5–1% below zone
5. Target: Next Supply zone above
Short Setup (Put / Short)
1. Price approaches Supply zone
2. Look for rejection
3. Enter on confirmation
4. Stop: 0.5–1% above zone
5. Target: Next Demand zone below

Break & Flip Rule: If price closes decisively through a zone and retests it — old Demand → new Supply (sell puts) / old Supply → new Demand (buy calls). Ignore fakeouts (wick through but close back inside).

Timeframe Power Law

Larger timeframe zones create stronger reactions on lower timeframes.

Rule of thumb: Always know the higher-timeframe zone before taking a lower-timeframe trade. Example: Daily Demand zone tested on 5-min chart = monster intraday move.

Daily Routine
  • Pre-market: Mark fresh Supply/Demand zones on 5-min, 1-hour, and daily charts.
  • Watch only the highest-probability tests (zones that held multiple times before).
  • Enter only when price reaches the zone and shows rejection.
  • Trail once in profit. Never move stop-loss further away.
Risk Management — Non-Negotiable
  • Max 1% account risk per trade (including options leverage).
  • Maximum 3–4 trades open at once.
  • No revenge trading after a loser.
  • If you miss the zone, do not chase.

Bottom line: Backtest 100 historical setups. Paper trade 30 days. Only then risk real capital. Edge comes from execution discipline, not from drawing more lines.

7 Market Breadth Day Types

The trading strategy for each session is determined by reading these 7 day types. Master this framework and you'll know exactly which strategy to deploy before the market opens.

Day TypeVOLD RatioA/D Line (NYSE)TICK BehaviorIdentification & Action
1. Breadth Extreme
RARE ~10%		Opens extreme (+5 or -5) and pins all session. No reversion.Pins to extreme (+2000 or -2000) at open; holds through close.Sustains directional bias (>+800 or <-800). Minimal flips.Pre-open: large gap + catalyst. Confirm by 10 AM. Fakes cost 2–3×.
2. Breadth ReversionOpens skewed (-3 to -5) but reverts sharply to 0–2 within 30–60 min.Opens extreme, rallies to zero band fast (first hour). Sucks back despite gap.Initial extremes fade; volatile flips without pin. Positive cross early signals upside revert.Confirm 10:30 AM: Fade the gap if holds zero. Fails 25% into trends.
3. Breadth CrescendoStarts neutral/slight (0–2) but ramps to extreme (+5) by midday.Begins near zero; ascends to +2000 and holds post-11 AM.Starts balanced; sustains >0 as momentum accrues — flips early, pins late.Confirm 11 AM: Scale in on build. Sneaky — miss early and abort.
4. Biased Range
MOST COMMON		Opens skewed (-3) but stays moderate (-2 to 0). No ramp or revert.Negative but not extreme (-800 to -500). Oscillates without zero-cross.Volatile spikes with no sustain. Flips frequently within bias.Choppy, low edge. Use for income, not directional heroes.
5. Breadth DivergenceGap mismatches internals: down gap but VOLD slight positive/neutral (0–1).Opens extreme but reverts to zero fast. Disconnect from price.Initial gap-driven extremes fade; unusual flips. ETF tone critical.High-reward contrarian. Divergence persisting = trap.
6. Breadth Neutral
40–50% of days		Flat balanced (-2 to +2) all session. Slight bias sucks back immediately.Pins to zero band (±500) consistently. No extremes.Oscillates above/below zero. No directional sustain.Your default — deploy neutral strategies. Master this for consistency.
7. Trifecta
RARE ~5–10%		All-in extreme from open. Pins +5 (bullish). No fade.Pins +2000 at open; holds absolute. Catalyst amplifies.Sustains >+800 all day. Zero flips. ETFs: offensive dominates.The grail. Verify triple alignment + sectors. Widowmaker if wrong.
The 3 Key Internals
VOLD Ratio
>3:1 = potential trend day
<2:1 = likelihood of chop/range/rest. First internal to check each morning.
Advance/Decline Line
How many more up vs down stocks. Want to see +2,000 (bullish) or -2,000 (bearish) for conviction.
TICK
Difference between stocks trading higher vs lower. TICK above/below zero for the entire day = directional confirmation. Create alerts for zero-line crosses against your bias.
Composite Risk Dashboard

19 indicators that combine into a single Composite Risk Score (0–100). Follow the light first — override only with strong conviction.

GREEN — Score <25
Add risk. Sell premium aggressively. Full position size.
YELLOW — Score 25–49
Caution. Size down to half. Tighten stops.
RED — Score ≥50
Trim positions. Move to cash or hedges. Defensive only.
IndicatorWhat It MeasuresKey ThresholdsAction
SPY Stretch CheckOverextension from 20-day mean in ATRs>2 ATRs: Strong / 1.5–2: Mild / <1.5: Balanced>2: Trim longs aggressively. <1.5: Add risk.
Key Options Levels & Vol TriggerDealer gamma walls + vol regimeSpot > VT: Low vol (stable) / Spot < VT: High vol (trending)Above VT: Sell premium. Below VT: Buy gamma/hedge.
VIX Fear GaugeMarket fear / implied vol>20: High fear / 15–20: Elevated / <15: Complacency>20: Buy protection. <15: Sell premium aggressively.
Put/Call Ratio (Equity)Sentiment — put vs call volume<0.80: Bull complacency / >1.0: Fear / 0.80–1.0: Neutral<0.80: Fade rallies. >1.0: Buy dips.
CBOE SkewTail risk pricing (downside fear)>135: Elevated tail fear / ≤135: Normal>135: Buy protection aggressively.
VVIX/VIX RatioVol-of-vol (market fragility)>6: Extreme uncertainty / 5–6: Elevated / <5: Stable>6: Hedge everything. >5: Caution on shorts.
Advance/Decline DivergenceMarket breadth healthDivergence (SPX high, NYA not): Weakness / No divergence: HealthyDivergence: Trim longs.
Risk On/Off RotationSector leadership (XLK vs XLP)Diff < -2%: Strong risk off / <0: Mild risk off / >0: Risk on< -2%: Defensive tilt.
Trend Strength (ADX 1–10)Trend persistence≥7: Strong / 4–6: Moderate / <3: Chop≥7: Ride momentum. <3: Avoid new positions.
CME Fed WatchRate change probabilitiesCut >50%: Dovish (bullish) / Hike >20%: Hawkish (bearish)High cut: Bull bias. High hike: Risk off.
Liquidity (TED Spread)Banking system stress>0.5: Stress / 0.3–0.5: Elevated / <0.3: Ample>0.5: Risk off, raise cash.
SPY Volume GaugeConviction vs average>150%: Conviction/panic / <70%: Apathy>150% on down day: Hedge.
Citigroup ESIEconomic surprises vs consensus>10: Strong beats (bullish) / <-10: Misses (bearish)Positive: Risk on. Negative: Risk off.
Market Sentiment TrackerNews tone>0.7: Extreme bull / <-0.7: Extreme bearFade extremes: complacency → lighten; fear → add risk.
Market Short InterestAggregate short exposure>5%: High (squeeze risk) / <2%: Low (bull confidence)>5%: Watch squeezes on rallies.
Multi-Signal Conviction Table
# Risk-Off Signals AlignedProbability of PullbackActionable Edge
3–4 signals~65% (moderate)Size down 50%, tighten stops
5+ signals~80%+ (high conviction)Aggressive trim/hedge, short bias
7+ signals~90% (extreme)Full defense: Cash + puts
Black Swan Watch

Rare but lethal: VIX >30 + Skew >150 + TED >1.0 + negative ESI cluster = potential crash setup (2008/2020 analogs). Probability low (~5% yearly), impact massive. Pre-position cheap OTM puts when 3 of 4 trigger.

TED Spread Explained

The TED Spread is the difference between the 3-month SOFR (bank lending rate) and the 3-month US Treasury bill rate (risk-free rate).

High TED (>0.5)
Banks hoarding cash, unwilling to lend. Signals liquidity stress or credit crunch. 2008 levels hit 4+. Risk off — markets hate illiquidity.
Low TED (<0.3)
Ample liquidity, banks lending freely. Normal or bullish environment. Watch TED + VIX together — both high = panic.
Refresh Cadence
  • Pre-market: Full dashboard scan.
  • Intraday: After macro data (CPI, Fed announcements).
  • EOD: Confirm closes. Stale dashboard = lost edge.
Course Overview

Modules build from fundamentals through advanced strategies. Each covers: Core Concepts, Math, Risks, and When to Use.

Honest warning: 70–90% of retail traders lose money. Paper trade 100+ setups before risking real capital.

00
Options Fundamentals — Prerequisites
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Core Concepts
Call Option
Right (not obligation) to buy 100 shares at a strike price by expiration.
Put Option
Right (not obligation) to sell 100 shares at a strike price by expiration.
Premium
Price paid/received for the option. Influenced by intrinsic value + extrinsic value (time + volatility).
Moneyness
ITM: Has intrinsic value. ATM: Stock ≈ strike. OTM: No intrinsic value.
The Greeks
Delta
Price sensitivity to a $1 stock move. Ranges 0–1 for calls, -1–0 for puts.
Theta
Time decay. How much the option loses in value per day. Works for sellers, against buyers.
Vega
Sensitivity to implied volatility changes. Higher IV = more expensive options.
Gamma
Rate of change of delta. Highest ATM and near expiration. 0DTE gamma is extreme.
Payoff Formula
Long Call Payoff = Max(0, Stock Price - Strike) - Premium
Long Put Payoff = Max(0, Strike - Stock Price) - Premium

Multiply per-share values × 100 for 1 contract.
01
Covered Calls — Conservative Income
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How It Works

Sell a call against owned shares. Collect premium, cap upside.

  • Breakeven = Purchase price − Premium
  • If stock rises above strike, shares get called away.
Math Example
Own 100 shares of XYZ @ $50 ($5,000 cost)
Sell 1-month $55 call for $2 premium ($200 credit)

Max Profit: $200 + ($55–$50)×100 = $700 (if called away)
Max Loss: Stock → $0 (full downside exposure, mitigated by ownership intent)
Position Delta: ≈ 0.7 (less bullish than pure stock ownership)
Risks & When to Use
  • Opportunity cost: Caps gains brutally if stock moons (sell at $55, it hits $100).
  • Full downside: No protection below purchase price — you still lose like a shareholder.
  • Best for: Neutral to mildly bullish outlook. Sideways or high-vol markets. MSFT/SPY type blue chips.
02
Credit & Debit Spreads
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4 Spread Types
Bull Call Spread (Debit)
Buy lower-strike call, sell higher-strike call. Bullish. Max loss = net debit.
Bear Put Spread (Debit)
Buy higher-strike put, sell lower-strike put. Bearish. Max loss = net debit.
Bull Put Spread (Credit)
Sell higher-strike put, buy lower-strike put. Mildly bullish.
Bear Call Spread (Credit)
Sell lower-strike call, buy higher-strike call. Mildly bearish.
Math Examples
Bull Call Debit: Buy $50 call @ $3, sell $55 call @ $1 → Net debit $2 ($200)
Max Profit: $5 – $2 = $3 ($300) | Max Loss: $200 | Breakeven: $52 | ROI: 150%

Bear Call Credit: Sell $55 call @ $2, buy $60 call @ $0.50 → Net credit $1.50 ($150)
Max Profit: $150 | Max Loss: $350 | Breakeven: $56.50
Honest Assessment

Credits tempt with "high probability" (70–80% win rate) — but losers are 3–5× winners. Brutal asymmetry. Most beginners overtrade, turning probabilities into losses via fees and slippage. Spreads feel safer than naked options, but they're still directional bets.

03
ZEBRAs — Zero-Extrinsic Back Ratio Spreads
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Core Concept

Advanced ratio strategy that mimics long stock with less capital. Buy 2 deep ITM calls, sell 1 ATM/OTM call. "Zero Extrinsic" means you're not paying meaningful time value.

Net Delta ≈ 1.0 (like owning 100 shares) but at 50–70% of the stock price cost. Upside is unlimited after the upper strike; downside is limited to the debit paid.

Math Example
XYZ @ $100
Buy 2× $90 calls (delta 0.8 each) @ $12 = $2,400 debit
Sell 1× $100 call (delta 0.5) @ $4 = $400 credit

Net Debit: $2,000 (vs $10,000 for 100 shares)
Net Delta: 1.6 – 0.5 = 1.1 (slightly leveraged long)

Above $100 → profits like stock. Below $90 → lose full debit.
Risks & Requirements
  • Full debit loss if stock drops — worse than stock's partial recovery potential.
  • Requires options approval level 3+. Not for small accounts.
  • Best for: Bullish with capital constraints. Instead of margin for synthetic longs. Moderate vol, avoid earnings.

Honest check: ZEBRAs are capital-efficient but volatile — great for sophisticated traders, disastrous for beginners.

04
Final Notes & Progression Path
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Learning Progression
  • Step 1: Master Covered Calls (lowest complexity, requires share ownership).
  • Step 2: Learn Credit & Debit Spreads (defined risk, most versatile).
  • Step 3: Graduate to ZEBRAs (capital efficient, advanced).
  • Step 4: Apply 0DTE strategies from the Trade Plans tab.
Brutal Advice

Paper trade 100+ setups before real money. Track win rate, expectancy (avg win × prob win − avg loss × prob loss). If expectancy is negative, quit or adjust. Most beginners skip this step and lose money they could have kept.

Recommended Resources
  • Tools: OptionStrat or Barchart for P&L visualizations. Thinkorswim or IBKR for paper trading.
  • Book: "Options as a Strategic Investment" by McMillan — the definitive reference.
  • Intellectual edge: Study Black-Scholes pricing intuition. Implied vol = market fear gauge.
⚠ All strategies and educational content on this page are for informational and educational purposes only. Not investment advice. Not a solicitation to buy or sell any security or financial instrument. Past performance is not indicative of future results. Options trading involves significant risk including the potential loss of the entire premium paid. Always paper trade before risking real capital. See full Legal Disclaimer →