0DTE Credit Spreads Indicator

0DTE Credit Spreads Indicator

Summary
An intraday, volatility-driven indicator that suggests 0dte credit-spread management levels. It combines a market structure path with an alternate momentum-driven early-entry path to let traders either capture clean session breakouts or participate earlier when short-term momentum strongly favors one side. This script was specifically designed to be used on the 15 minute time frame tracking SPX. The signals produced are either a put credit spread (pcs) or call credit spread (ccs). It is strongly recommended to have a firm understanding of how credit spreads and options in general operate. Once a signal it triggered, the script will also show a recommended credit to target. You will then need to select option strikes that will achieve that credit. A confidence level is generated as well. This is determined by historical data and probability of success of closing out of the money (OTM).

Two deterministic entry methods-

Session-Structure

The script measures the instrument’s early-session price action. It derives a range and midpoint used as the session reference. When price clearly confirms movement beyond this early-session structure, the script generates the session-structure trade. This path is used when no earlier momentum entry exists.

Momentum Early-Entry (override)

Independently, the script monitors a short-term momentum oscillator on a higher intraday timeframe. If that momentum condition triggers during the opening window, an early-entry candidate is recorded at the price at which the momentum condition occurred. When the script subsequently pushes a trade for that day it uses the recorded early-entry price as the official entry. This path is intended to capture faster moves while maintaining disciplined TP/SL construction.

How the script chooses between the two-

Priority is deterministic: if a momentum early-entry candidate was recorded during the opening window it is used; otherwise the session-structure breakout path is used. Settings allow enabling/disabling early-entry and controlling whether both sides can trigger in one session.

TP/SL — how levels are formed-

Take Profit (TP): user-controlled TP% determines a live TP line computed from the entry toward the session reference. For early-entry trades the script guarantees a volatility-based minimum TP (an ATR-derived floor) so targets remain realistic relative to short-term volatility. The TP line updates instantly as the TP% dropdown changes.

Stop Loss (SL): non-early trades: opening-range midpoint. Early-entry trades: SL is computed relative to the recorded early-entry price using ATR scaling plus a small buffer — this anchors risk to the entry and to intraday volatility rather than to the opening midpoint.

Informational P/L simulation-

The on-chart aggregation table is an informational simulation, modeling credit-spread outcomes such as partial TP closes and remainder evaluation (EOD vs SL-cross). It uses a volatility-to-credit mapping to estimate typical credit amounts. It is not a TradingView strategy — it’s a simulator to help evaluate the on-chart rules.

Why it’s different-

Two-path session-aware workflow lets traders either wait for a structured breakout or participate earlier when momentum is decisive.

TP/SL combine live user control with volatility-aware floors and ATR-scaled stops to better align targets and risk with actual market movement.

Execution-aware simulation models partial exits and intraday SL-cross behavior that ordinary long/short strategies don’t represent for credit-spread sellers.

Visible inputs & limitations

Users can toggle early-entry, adjust TP% live, show/hide TP/SL lines, control duplicate-signal behavior, and create alerts. The simulation is approximate and intended for informational use; it does not replace options-specific historical fills and full options backtesting.

Audience & risk
Invite-only. For day traders / 0DTE options sellers. Trading is risky — use this for decision support and perform independent testing.