0DTE Strategy Guide: Long Call
The long call is the simplest bullish options strategy. Learn how it works in 0DTE, when to use it, and why timing and liquidity matter more than ever on expiration day.
The long call is where most options traders begin. You buy a call option, giving you the right to purchase the underlying at a specific price (the strike) before the option expires. In 0DTE trading, that expiration is today.
Basic Structure
- Legs: Buy 1 call option
- Risk type: Defined risk — your maximum loss is the premium you paid
- Directional bias: Bullish — you need the underlying to move up
- Cost: You pay a debit (the premium) to enter
How It Works in Practice
Suppose SPY is trading at $580. You buy the $581 call for $0.80. For this trade to be profitable, SPY needs to rise above $581.80 (strike + premium paid) before 4:00 PM ET.
If SPY moves to $583, the call might be worth $2.00 or more — a 150% gain. If SPY stays below $581, the call expires worthless and you lose the $0.80 premium.
Best Market Conditions
- Trend days: When SPY or QQQ are trending upward with conviction
- Low to moderate IV: Premiums are cheaper, giving better risk-reward
- Morning entries (9:45–11:00 AM ET): Gives the trade time to develop before theta accelerates
Greeks Exposure
| Greek | Exposure | What It Means |
|---|---|---|
| Delta | Positive (+) | You profit when the underlying rises |
| Gamma | Positive (+) | Your delta increases as the underlying moves in your favor |
| Theta | Negative (-) | Time decay works against you every minute |
| Vega | Positive (+) | You benefit if implied volatility increases |
Why Traders Use It in 0DTE
The long call offers unlimited upside with defined risk. You cannot lose more than what you paid. On strong trend days, 0DTE calls can return 200–500% because gamma acceleration amplifies gains near expiration.
Primary Risk Factors
- Theta burn: On expiration day, time decay is at maximum. A stalled position bleeds premium rapidly.
- Gamma risk: While gamma helps when the trade works, it punishes just as fast in reverse — a $1 pullback can erase gains quickly.
- Spread width: Wide bid-ask spreads on entry mean you start underwater. Always check spread quality.
- Chasing entries: Buying after a big move means you overpay. The best entries come during consolidation before the next leg.
Exit Management for 0DTE
- Set a profit target (e.g., 50–100% gain) and take it — don't get greedy on expiration day
- Use a time stop: if the trade hasn't worked by 1:00 PM, consider closing to preserve remaining premium
- Never hold into the last 30 minutes unless deeply in the money
Safety Rating
Defined risk. The long call is one of the safer 0DTE strategies because your loss is capped at the premium paid. However, the probability of a total loss (expiring worthless) is high on any given day. Position sizing is critical.
This content is for educational purposes only and does not constitute financial advice. Options trading involves substantial risk of loss. Past performance does not guarantee future results.