I primarily sell SPX put credit spreads between **3:50-4:15 p.m. ET**, then I close the position **right after the market opens the next morning (usually between 9:30-9:34 a.m.)**, regardless of whether I’m up or down. I usually do 10-15 10 wide put credit spreads, around 1.3% otm.
The main reason is honestly psychological. I can’t mentally handle sitting in front of the screen from 9:30 to 4:00 every day watching every tick. I second guess every decision when markets are open. This approach lets me place the trade, walk away, sleep on it, and then exit first thing in the morning.
So far, I’ve found that overnight theta decay and mostly a favorable overnight move often gives me a decent profit by the open. If the trade moves against me, I roll it out.
I only do this with **SPX put credit spreads** because I know I have the flexibility to roll if needed, and over the long run I trust that broad market pullbacks eventually recover.
I know this probably isn’t a conventional approach, but it’s what has worked best for both my psychology and consistency.
Does anyone else trade almost exclusively overnight like this? Any pitfalls I’m overlooking?