Educational only, not financial advice or a strategy recommendation. Options strategies carry risk, including of substantial loss. NoVo trades long single options; the strategies here are explained for understanding, not endorsed.

A 0DTE call credit spread (bear call spread) sells a call and buys a higher call — collecting premium and profiting if SPY stays below the short strike. It’s the bearish-or-neutral mirror of the put credit spread.

How it works

Sell a call above the market, buy a further-OTM call for protection — net credit. If SPY stays below the short call into expiration, both expire worthless and you keep the credit. You profit from a falling, flat, or even slightly rising market — you just need SPY to hold below your short strike. The long call caps the loss.

Why and when

Traders use it for a bearish-to-neutral view with resistance above (short strike placed above the call wall). It profits from decay and doesn’t need a big down-move. The risk: a sharp rally through the short strike loses multiples of the credit — and a vanna melt-up can do that faster than expected on 0DTE.

A call credit spread gets paid for SPY not rallying — bearish, neutral, or mildly bullish all work, as long as price stays below your short call.

How NoVo differs

Instead of selling a call spread for a bearish view, NoVo would buy a put (long premium, defined risk = cost). The call credit spread is a valid premium-selling structure with a different risk profile from NoVo’s long-premium approach. Combine it with a put credit spread and you have an iron condor.