How to Trade 0DTE Index Options With a Tenth of the Risk

Tom Preston makes the case for XSP as a lower risk way to start trading zero DTE index options on Cherry Bomb. XSP is the mini S&P 500 index, exactly one tenth the size of SPX, so the credit you collect, your max risk, and your max profit all scale down to one tenth. That makes it easier to test 0DTE strategies without much capital. Tom is honest about the trade offs. XSP has wider strike spacing, so you cannot fine tune strikes the way SPX allows, and matching SPX size means ten times the contracts, which multiplies commissions and slippage. His take is to learn on XSP, then move up to SPX as your experience grows. This is education, not a recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Why trade 0DTE index options 00:20 Why we always look at SPX 00:59 How index price drives option price 01:16 Building an SPX iron condor 01:58 Meet XSP the mini SPX 03:00 Everything is one tenth the size 04:27 Comparing credit risk and profit 05:38 The downsides of XSP 06:24 When you need more size or precision 07:24 Start small then scale up #tastylive #optionstrading #xsp #spx #0dte #ironcondor #optionsstrategy #tastytrade #optionseducation #tompreston tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.