Give me the best strategy's in options for the spy 1dte with good gain probability


Aime
The best 1DTE options strategy for SPY (S&P 500 ETF) with a high probability of gain would be a combination of a bull call spread and a bear put spread. Here's how to execute this strategy:
- Bull Call Spread:
- Buy 1 call option with a strike price slightly above the current market price of SPY.
- Sell 1 call option with a strike price significantly above the current market price of SPY.
- Bear Put Spread:
- Buy 1 put option with a strike price slightly below the current market price of SPY.
- Sell 1 put option with a strike price significantly below the current market price of SPY.
This strategy takes advantage of the potential for SPY to move in either direction within a 1-day timeframe, while also limiting potential losses by selling the higher strike options.
- Target Profit:
- The profit target is achieved when the SPY price moves significantly above the higher strike price of the call options, leading to the call options expiring worthless and the put options expiring in-the-money.
- Risk Management:
- The risk is limited to the difference between the strike prices minus the net credit received from selling the higher strike options.
- Probable Outcome:
- If the SPY price remains within the range defined by the strike prices, the strategy will result in a small loss.
- If the SPY price moves significantly above the higher strike price, the strategy will result in a substantial gain.
Remember, options trading involves risk, and the probability of gain is not guaranteed. It's crucial to consider your risk tolerance, investment goals, and market conditions before implementing any options strategy.
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