What Are 0-DTE SPX Iron Butterflies?

A 0-DTE SPX iron butterfly is a same-day-expiration, four-leg, defined-risk options trade on the SPX index. "0-DTE" means zero days to expiration — the options are opened and expire on the same trading day.

An iron butterfly combines a short call spread and a short put spread centered on the same strike, usually placed near where SPX is currently trading. You collect a net credit up front, and the trade profits when SPX finishes near that center strike at the close. Long options on each side cap your risk, so your maximum loss is known when you enter.

Because they expire the same day, these are fast-moving, higher-risk trades that demand attention — they're best understood thoroughly before you attempt them. I send trade alerts for the ones I place, and you can review performance on the results pages. The course explains the mechanics and risk management behind defined-risk trades like this one.