Zero DTE (zero days to expiration) options trading has become one of the most dynamic and potentially rewarding strategies in the market today. In this example, we’ll explore how applying price pattern analysis and risk management can lead to 50–100% returns in a single trading session — all while keeping risk under control.
Click here or on the video below to learn the secrets revealed in this trade breakdown at market open.
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The Market Outlook Framework
At Locke In Your Success, the Market Outlook and Trading Market Open webinars focus on developing a deep understanding of price zones, patterns, and probability-based entries.
John explains that this understanding allows traders to:
- Identify high-probability entry points
- Recognize when a move is going bad
- Know when to scale in or scale out
- Manage risk exposure responsibly
By mastering these principles, traders can adapt to any timeframe — from intraday scalping to long-term investing.
The Setup: Using SPY for a Zero DTE Trade
In this real-world trade, John demonstrates the approach using SPY options.
The setup includes:
- The previous day’s high and low, represented as a red box
- The overnight futures movement, shown in a white box
- A projected price pattern target for potential breakdowns or reversals
When the market opened, SPY sold off briefly — creating an opportunity for a bullish reversal from the overnight low.
“We got a sell-off off the open… I’m bullish for the day,” John notes. “From this low down here, our price pattern target back into the swing low of the previous day is a very high-probability trade.”
Managing Risk and Locking In Profits
John entered the position with 10 contracts at $1.91 each, or $1,910 in total risk.
He explains how he removed risk quickly by selling higher-strike calls, effectively converting the trade into a risk-free position.
Within minutes, the position was riskless, with profits already locked in. As price advanced, he continued adjusting:
- Selling calls at higher strikes
- Rolling long options up
- Reducing exposure as price targets were met
This resulted in a $920 gain — nearly 50% in minutes, with the potential to earn even more if the market continued higher.
Turning a Trade Into Income
Later, John transitions the position into a butterfly structure, locking in 80% of profits while allowing for further gains if the market consolidates.
“The wonderful part about trading this way is I can be wrong a lot and still make money,” he says.
This flexible, adaptive mindset is key to consistent profitability in short-term trading. Rather than rigid trade rules, it relies on price awareness, probability, and timing.
Why This Strategy Works
The strategy John teaches in Trading Market Open is powerful because it:
- Reduces time exposure to risk
- Focuses on high-probability setups
- Uses price pattern targets to guide entries and exits
- Can be applied to any timeframe — from zero DTE to long-term investing
Whether you trade intraday options, weekly spreads, or long-term portfolios, these techniques help you read the market with confidence.
Applying These Concepts Beyond Zero DTE
Even if you’re not trading zero DTE options, these same techniques apply to:
- Swing trading on daily or hourly charts
- Long-term investments on weekly charts
- Income trades with defined risk
Understanding price movement and option behavior gives you the flexibility to trade with confidence, precision, and peace of mind.
Final Thoughts
The Trading Market Open and Market Outlook webinars are about empowering traders to understand the market, not guess it. By combining strong probability concepts with disciplined risk management, John Locke shows that consistent profits are possible — even in fast-moving markets.
If you want to learn more about these methods and join live examples every Monday, explore the Market Outlook Membership or the Pro Membership.
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