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Options 101
Choosing a Strike for a 0DTE Scalp: How Far Out-of-the-Money?
Same direction, same timing, different strike — and completely different results. Strike selection is half of whether a 0DTE scalp works.
NoVo Options Trading · 2026
Once you've called direction, you still have to pick a strike, and it changes everything about how the trade behaves. The choice is a trade-off between responsiveness and cost.
The spectrum
At-the-money (ATM) options have the highest delta among cheap strikes and the most gamma, so they move fast with SPY — but they cost more and bleed the most theta. Far out-of-the-money (OTM) options are cheap, but with a low delta they barely move unless SPY makes a big, fast run — and most days it won't. Deep in-the-money is the other extreme: steady but capital-heavy (see deep-ITM options).
Where scalpers land
For a fast 0DTE scalp, most traders sit near the money — at-the-money to a strike or two out. That's enough delta for the option to actually respond to a level-to-level move, without paying the full ATM premium. The far-OTM “cheap lottery ticket” is where beginners quietly lose: it feels affordable, but the odds and the delta are both against it.
Cheap isn't the same as good value. A far-OTM strike needs a move most sessions never make; a near-money strike gets paid on the move that actually happens.
Frame it against the move
Anchor the choice to the realistic expected move and the distance to the next dealer level. If your target is a level $2 away, pick a strike responsive enough to profit on that $2 — not one that needs $6. A cleaner, repeatable way to do this is selecting by delta rather than by price, which is exactly how NoVo picks the strike for you once you set the direction.
More on this: Choosing Your Trading Timeframe
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.