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 put credit spread (bull put spread) sells a put and buys a lower put — collecting premium and profiting if SPY stays above the short strike. It’s a defined-risk bullish-or-neutral bet, a type of credit spread.
How it works
Sell a put below the market, buy a further-OTM put for protection — net credit. If SPY stays above the short put into expiration, both expire worthless and you keep the credit. You profit from a rising, flat, or even slightly falling market — you just need SPY to hold above your short strike. Max loss (strike width minus credit) is capped by the long put.
Why and when
Traders use it for a bullish-to-neutral view with a support level below (short strike placed under the put wall). It profits from decay and works on more days than a directional long call (you don’t need a big up-move). The risk: a sharp drop through the short strike loses multiples of the credit, and on 0DTE that can happen fast.
A put credit spread gets paid for SPY not falling — bullish, neutral, or mildly bearish all work, as long as price holds above your short put.
How NoVo differs
Instead of selling a put spread for a bullish view, NoVo would buy a call (long premium, defined risk = cost). Both express bullishness; the risk/reward and mechanics differ. The put credit spread is a valid premium-selling structure; NoVo’s is long-premium. Its mirror is the call credit spread.