0DTE Strategy Guide: Long Put
The long put lets you profit from downside moves with defined risk. Learn how this bearish strategy works in the fast-paced 0DTE environment.
The long put is the mirror image of the long call. You buy a put option, giving you the right to sell the underlying at the strike price. In 0DTE, you are betting that the underlying drops — and drops fast enough to overcome time decay.
Basic Structure
- Legs: Buy 1 put option
- Risk type: Defined risk — maximum loss is the premium paid
- Directional bias: Bearish — you need the underlying to move down
- Cost: Debit (premium paid)
How It Works
SPY is at $580. You buy the $579 put for $0.75. For profit, SPY needs to fall below $578.25 (strike minus premium). If SPY drops to $576, the put could be worth $3.00+ — a 300% return. If SPY stays above $579, the put expires worthless.
Best Market Conditions
- Down-trending or gap-down days: Bearish momentum creates the fast moves long puts need
- High-fear events: CPI misses, geopolitical shocks, surprise Fed commentary
- Elevated VIX: Markets tend to fall faster than they rise, which benefits put holders
Greeks Exposure
| Greek | Exposure | What It Means |
|---|---|---|
| Delta | Negative (-) | You profit when the underlying falls |
| Gamma | Positive (+) | Your delta accelerates as the underlying drops |
| Theta | Negative (-) | Time decay works against you |
| Vega | Positive (+) | Rising implied volatility increases your option's value |
Why Traders Use It in 0DTE
Markets tend to crash faster than they rally. When fear hits, puts can produce explosive returns in minutes. The long put's defined risk makes it the go-to for bearish directional bets when you want to limit your downside.
Primary Risk Factors
- Theta burn: Same as calls — time decay is brutal on expiration day
- Mean reversion: Markets often bounce after selloffs. A put bought during a panic dip can reverse quickly
- IV crush: If you buy puts when VIX is already spiking, the premium may be inflated. A volatility contraction hurts even if direction is correct
- Slippage: During fast selloffs, spreads widen. Your fill may be worse than expected
Exit Management for 0DTE
- Take profits quickly — 50–100% gains can evaporate in a bounce
- If SPY reverses $1 from your entry, the trade thesis may be broken
- Puts lose value fastest in the afternoon if out of the money. Close before 2:00 PM if the move hasn't happened
Safety Rating
Defined risk. Like the long call, your maximum loss is the premium paid. Suitable for beginners who understand that most puts expire worthless and position size accordingly.
This content is for educational purposes only and does not constitute financial advice. Options trading involves substantial risk of loss.