Stock Market Options Trading 172: The 0DTE Trend Spread Engine: Building in Public
Dec 19, 2025
A new engine for zero-DTE SPX credit spreads is unveiled and explained. The conversation covers building a public trading system that stacks small statistical edges. You hear why higher-frequency, intraday setups and seasonality matter. Practical topics include strike selection, trade timing every 15 minutes, and risk-focused trade management.
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Building The Zero DTE Engine In Public
- AlphaCrunching launched the SPX Zero DTE Trend Spread Engine and is building it in public via Discord.
- Eric says it's a new Discord bot feature; concepts are final but code and posting have glitches as they iterate with member feedback.
Probabilities Alone Are Not An Edge
- Options probabilities are baked into prices and alone are not a trading edge.
- Eric O'Rourke explains selling OTM options randomly loses because market prices already reflect those probabilities and you need an additional strategy to beat them.
Combine Options With Volatility Or Directional Edges
- Use additional analyses like implied volatility timing or directional forecasts to create an edge.
- Eric recommends pairing options selling with volatility edges or directional views (e.g., weekly forecasts) before placing credit spreads.