203: SPX 1DTE Strategy: AI Backtesting with ChatGPT & MCP

In Episode 201 of the Stock Market Options Trading Podcast, I'm taking you behind the scenes at Alpha Crunching to share some of the SPX 1DTE options research I've been working on, including a few interesting backtests and an upcoming expansion of our Tomorrow's Triumph Rate (TTR) data. TTR currently measures how often SPX closes higher the following trading day based on a rolling historical window. We're now working on expanding that research to include intraday comparisons, giving us more flexibility to identify potential 1DTE trading opportunities at different times throughout the day. In this episode, I'll walk through: Monday & Tuesday: Testing 1DTE call credit spreads during historically bearish periods. Thursday: Exploring 1DTE put credit spreads when the data suggests a bullish bias heading into Friday. Wednesday: An interesting reverse iron condor backtest that showed some promising initial results. Option Omega: Using the new optimization feature to compare entry times, strike selections, and trading performance. TTR 2.0: A preview of the additional intraday data we're developing at Alpha Crunching.

SPX 0DTE options trading continues to grow, and Cboe recently announced some interesting developments that could change how we trade SPX options in the future. In this week's Stock Market Options Trading podcast, we're looking at the potential addition of new AM-settled SPX weekly options, the continued expansion of global trading hours, and what all of this could mean for retail traders. Could we eventually see SPX options trading 24 hours a day, five days a week? And how will our charting, backtesting, and gamma analysis tools adapt? We also take a look at the SPX market heading into the week of October 12, including key gamma levels, the 7900 call wall, volatility, and upcoming CPI and PPI inflation reports. At Alpha Crunching, we're continuing to develop and trade systematic SPX 0DTE strategies, including mechanical end-of-day trades that can be executed manually or through automation with PeakBot. Resources & Links 🔹 Alpha Crunching – SPX trading strategies, backtests, and research https://alphacrunching.com 🔹 PeakBot – Automated options trading strategies https://alphacrunching.peakbot.com 🔹 Cboe – Additional AM-Settled SPX Weekly Options https://www.cboe.com/notices/content/?id=61537&utm 🔹 Cboe – SPX Global Trading Hours Expansion https://www.cboe.com/insights/posts/cboe-global-trading-hours Topics Covered New AM-settled SPX weekly expirations Global trading hours and the possibility of 24/5 options trading Challenges for SPX charting, backtesting, and gamma tools SPX gamma levels and the 7900 call wall CPI, PPI, and the market outlook Systematic SPX 0DTE trading strategies

Why would an SPX options trader purposely choose a lower win-rate strategy? In Episode 200 of the Stock Market Options Trading Podcast, I break down my recent SPX 0DTE trading results and explain why win rate alone can be misleading. Over the past couple of months, these strategies have produced a 59.4% win rate, but the bigger story is the risk/reward: an average winner of $188 versus an average loser of $158 per lot. Pasted text We’ll look at why I’ve shifted away from relying on traditional high-probability, far-OTM credit spreads for mechanical trades and toward defined-risk SPX strategies with more balanced risk/reward. A lower win rate can be much easier to tolerate when one loss doesn’t wipe out several previous winners. Pasted text Then I walk through a recent premarket SPX iron condor where I used gamma exposure (GEX) to help select my strikes. With SPX expected to open relatively flat and trading in a positive gamma environment, I used the 7750 and 7785 gamma levels as the short strikes of the iron condor. Pasted text The trade was opened about an hour before the market opened for a $4.50 credit and closed roughly 20 minutes after the open for $3.65, capturing $0.85 as opening premium came out while SPX remained inside the expected range. Pasted text Topics covered: SPX 0DTE options, lower win-rate strategies, risk/reward and expectancy, defined-risk options trading, iron condors, premarket options trading, gamma exposure (GEX), gamma support and resistance, strike selection, and systematic SPX trading. For educational purposes only. Not financial advice. 📊 SPX 0DTE Strategies from this video: • EOD Iron Condor Strategy: https://www.alphacrunching.com/blog/end-of-day-iron-condor-a-simple-mechanical-strategy-for-spx-0dte • EOD Put Debit Spread Strategy: https://www.alphacrunching.com/blog/spx-end-of-day-put-debit-spread-strategy-rules-backtest-and-automation 🤖 Automate the Strategies with PeakBot Automate the same Alpha Crunching trade setups covered in this episode: https://AlphaCrunching.Peakbot.com 📈 Join the Alpha Crunching Community Get our trade setups, SPX trading tools, alerts, research, and access to a community of traders focused on systematic options trading: https:/AlphaCrunching.com

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. Access the Gamma Exposure & Market Analysis Platform: https://alphacrunching.sensamarket.com/ Alpha Crunching has partnered with SensaMarket to bring retail traders affordable access to powerful market analysis tools, including gamma exposure, options flow, charting, options modeling, and more. 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.

Resources mentioned in this video: The Money Show: https://orlando.moneyshow.com/?scode=068013 Historical Gamma Indicator: https://alphacrunching.sensamarket.com Alpha Crunching Trading Community, Research, Tools: https://www.alphacrunching.com In this episode of the Stock Market Options Trading Podcast, I break down another 0DTE XSP trade that I was able to convert into a risk-free position—but this time, I spend more time on the market analysis behind the entries. I’ll show how I used Historical Net Gamma Exposure (GEX) to identify an important SPX gamma level around 7,600, look for potential mean reversion, and time multiple credit spread entries. We’ll walk through how the trade evolved from an in-the-money call credit spread, into a reverse iron condor, and eventually into a position with multiple potential profit zones and no remaining downside risk beyond commissions. We’ll also discuss why I’m experimenting with XSP for these trades, how gamma levels can change throughout the trading day, and why I view GEX as another indicator—not something that should be traded blindly. In this episode: Trading 0DTE XSP before the regular market open Using Historical GEX to identify potential SPX levels Turning a profitable credit spread into a reverse iron condor Adding an iron butterfly around a major gamma level Creating wider profit zones instead of simply closing a winning trade Why gamma exposure is context—not a standalone trading signal Managing a volatile 0DTE trading day while reducing risk I’ll also be speaking about SPX 0DTE options trading at the Traders Expo / Orlando MoneyShow, October 5–7. If you’re attending, I’d love to meet you in person. Options involve risk and are not suitable for all investors. This content is for educational purposes only and is not financial advice.