The 0DTE Glossary + Quick Start Guide
Every term you need to know before your first SPY 0DTE trade, plus the 5-step process to get started — free, no strings attached.
Shen Lao
@shentrades
Hey — here's today's SPY 0DTE levels. PDH, PDL, and the zones I'm watching before the open 👇
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Part 1
The Glossary
The exact terms used throughout every level, every setup, every trade.
Mechanics
0DTE
An option expiring the same day you buy it. No overnight risk — it resolves by the close.
Theta
Time decay. Every minute a 0DTE option exists, it loses value — even if the price doesn't move.
Delta
How much an option's price moves per $1 move in the underlying. Higher delta = more sensitivity.
Leverage (the "why")
Why a $0.50 SPY move can mean a 15-20% option gain. You're buying $1.00 of leverage, not $1.00 of SPY — small underlying moves create outsized % swings in the contract.
ATM vs. 1-Strike OTM
ATM = the strike closest to current price. 1-strike OTM = one strike beyond it. OTM is usually the better cost-to-reaction tradeoff for 0DTE.
Premium
The price of the option contract itself — what you actually pay to enter the trade.
Levels & Setup
Whole Dollar Level
A round-number price ($750, $755) where psychological order clustering creates a higher-probability reaction zone.
PDH / PDL
Previous Day High / Previous Day Low — yesterday's session extremes, marked as today's reaction zones.
PMH / PML
Previous Market High / Low — the high/low of the prior extended-hours session.
RSI
Relative Strength Index. Above 70 = overbought. Below 30 = oversold. Used as confirmation, not a standalone signal.
Conviction Stack
The real-time checks run before any entry — first touch, speed into the level, and RSI confirmation. The more that align, the stronger the setup.
Setup Grade
A quality score (A+ down to Skip) assigned to every setup before sizing it. The exact grading criteria are part of the full system.
Risk & Execution
Bracket Order (OCO)
A take-profit and stop-loss set simultaneously the moment you're filled. "One Cancels the Other" — when one triggers, the other cancels automatically.
Daily Loss Limit
A pre-defined point where you stop trading for the day, decided before the session starts — not negotiated with yourself mid-trade.
Part 2
See It On A Chart
Drag the slider to move through a simulated session. Watch what happens at each level.
Part 3
The Quick Start Guide
Five steps. Nothing skipped, nothing extra.
1
Learn the mechanics cold
Before any trade — know what you're actually buying. If you can't explain theta, delta, and 1-strike OTM without looking them up, start there.
2
Mark your levels pre-market
PMH, PML, PDH, PDL, plus the whole-dollar strikes nearby. Do this before the bell — not during.
3
Wait for first touch + RSI confirmation
Price has to actually reach your level, and RSI has to confirm the extreme. No RSI extreme, no trade.
4
Set your bracket order immediately
The moment you're filled — not after. A target and a stop, both set, every single time.
5
Close the platform on time
0DTE has a window. When it's closed, it's closed — no exceptions, no "just one more."
Don't trade without knowing today's levels
Every level used in this guide comes from the same process I run every morning before 6:30am PST. Scroll up and subscribe to get tomorrow's levels free.
Ready to go deeper?
This is the foundation. The full system — exact entries, grading matrix, real trade examples, and the daily execution behind it — lives at spy0dte.com.
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