TTR 1DTE Call Credit Spread Strategy
A Contrarian Edge: The TTR 1DTE Call Credit Spread Strategy
Most traders follow bullish trends with bullish trades. But what if there was a way to profit by strategically fading strength in a controlled, systematic manner?
That’s where the TTR 1-Day-to-Expiration (1DTE) Call Credit Spread Strategy comes in. This contrarian approach takes advantage of temporary overextensions in bullish market conditions—adding an extra layer of balance to the TTR 1DTE trading system.
While our Monday, Wednesday, and Friday put credit spreads capitalize on bullish momentum, this Tuesday and Thursday call credit spread works to counteract excessive short-term moves, providing a complete, adaptable strategy.
Let’s break down the research behind it.
How the Tuesday/Thursday TTR Call Credit Spread Works
This trade is entered only on Tuesdays and Thursdays, targeting short-term overbought conditions in the S&P 500 (SPX). The goal isn’t to fight a long-term uptrend but to capitalize on brief market exhaustion by selling call credit spreads that benefit from either a small pullback or a pause in upward momentum.
- Trade Setup: A 1DTE call credit spread is entered when the TTR indicator signals an opportunity. (TTR is Above 60 and Flat or Increasing from the previous week)
- Market Context: This strategy is traded only in bullish markets (Above 20sma on Daily Chart), leveraging temporary price dislocations that tend to mean-revert.
- Positioning in the System: This complements the Monday, Wednesday, Friday put credit spreads, reducing directional exposure while enhancing capital efficiency.
Backtest Results: Steady Performance Across Market Conditions
This strategy has been backtested from June 2022 onward (when SPX began offering daily expirations), with the following key stats:
📊 Win Rate: 75%
💰 Average Winner: $204
📉 Average Loser: -$284
While the risk/reward is slightly asymmetric, the high win rate helps maintain steady account growth. The real strength, however, comes from its annualized performance when traded with proper risk management.
Annual Performance Metrics (2% Risk per Trade on a $100K Account)
One thing that stands out about this strategy is its ability to perform regardless of market conditions. Even during the bear market of 2022, it managed to generate a steady 4.78% return, proving that well-structured credit spreads can thrive in volatile environments. In 2023, a strong bull market year, it still delivered a 4% return, reinforcing its adaptability. But 2024 is where it really shines—capitalizing on favorable conditions to produce a 14% gain.
This kind of consistency across different market regimes underscores the strength of credit spreads and their capital efficiency—allowing traders to generate returns without excessive directional risk.
A More Complete Trading System
The TTR 1DTE trading system is designed to take advantage of bullish conditions in a structured and systematic way:
- Monday, Wednesday, Friday: Put credit spreads to ride bullish trends.
- Tuesday, Thursday: Call credit spreads to fade overextensions.
This system isn’t about predicting market direction—it’s about executing high-probability setups that align with short-term market tendencies. By incorporating both momentum-based put credit spreads and contrarian call credit spreads, the system ensures a well-balanced approach to 1DTE trading.
For subscribers, the full 1DTE system is integrated into the Trade Ideas tab, which highlights which 1DTE setups are valid for the current week. This allows traders to see exactly when and where opportunities arise without having to manually review the TTR each week to determine if a trade setup is valid.
Additionally, to review the Monday, Wednesday, Friday put credit spread strategies, check out this video:
📌 Quick Video on the SPX 1-3DTE PCS
Final Thoughts
Many traders focus on just one type of setup, but a well-rounded system adapts to different market conditions. By integrating this Tuesday/Thursday contrarian trade, the TTR 1DTE system becomes a more complete and balanced approach—reducing directional exposure while maximizing capital efficiency.
The results speak for themselves. Consistent performance across both bull and bear markets reinforces that properly structured credit spreads can generate steady returns without excessive directional risk.
🚀 Want to see how this fits into the bigger picture? The Trade Ideas tab inside Alpha Crunching provides a clear roadmap for which 1DTE trades are valid each week, so you’re always prepared before the market opens.
New subscribers get 50% off their first month, giving them access to the Trade Ideas on Sunday before the trading week begins. Since Alpha Crunching does most of the legwork, implementing this strategy takes just a few minutes per day, making it a simple yet powerful approach to trading SPX options. Click Here to sign up and use code SPX50 for 50% off your first month.
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