Track A — 0DTE Mastery · Exam 6 of 7
Track A Exam — 0DTE Mastery
30 questions over the 0DTE track. Pass mark: 80%. Curriculum & Assessment · Team Alpha Trading
This is the Track A final exam for Alpha Academy Level 3. It tests what you learned in The 0DTE Arena through The 0DTE Playbook: the 0DTE arena, 0DTE structures, timing and the session map, the risk commandments, and the 0DTE playbook.
There are 30 multiple-choice questions. Each question has four options, A through D, and exactly one correct answer. Some questions ask you to work out dollar amounts. Do the math on paper before you choose — on a real 0DTE trade, the math is the trade.
Pass mark: 80%. That means at least 24 of 30 correct. If you score below 24, your answer key tells you exactly which module to re-study for each miss. Re-study, then take the exam again.
Take it closed book, in one sitting, with no phone. Treat it like a trading session: no rushing, no guessing your way out of a bad position.
The Questions
1. What does 0DTE mean?
- A) An option with zero days of time value left at any point in its life
- B) An option that expires on the same trading day you are trading it
- C) An option contract that costs nothing to buy
- D) An option that can only be traded in the first hour of the day
2. How does time decay (theta) behave on the day an option expires?
- A) It slows down, because there is almost no time value left to lose
- B) It stays flat and predictable all day long
- C) It accelerates sharply, and a bought option can melt toward zero even if the underlying barely moves
- D) It only matters for sellers, never for buyers
3. Why do 0DTE premiums swing so violently in the final hours?
- A) Gamma is at its highest near expiration, so a small move in the underlying causes a large, fast change in the option's price sensitivity and price
- B) Brokers widen every quote on purpose near the close
- C) The exchanges add a surcharge that moves prices
- D) Market makers stop quoting, so prices jump randomly
4. Which statement about SPX index options is correct?
- A) They settle in shares of the S&P 500 stocks
- B) They are American-style and can be assigned early
- C) They give the holder shares if held to expiration
- D) They are cash-settled and European-style, so there is no early assignment
5. Which statement about SPY options is correct?
- A) They are cash-settled like SPX options
- B) They are American-style, settle in shares, and early assignment is a real risk for option sellers
- C) They can never be assigned before expiration
- D) They expire worthless every day no matter what the price does
6. You buy a 0DTE call for $1.50. The underlying stalls and drifts slightly against you. What is the worst realistic outcome by the close?
- A) The entire $150 per contract is lost — a bought 0DTE option can lose 100% of its premium in minutes
- B) You can only lose half the premium, because expiration protects buyers
- C) You lose nothing, because a stalled market returns your premium
- D) Your loss is capped at the bid-ask spread
7. What is the maximum loss on a credit spread?
- A) The credit received
- B) Unlimited, like selling a naked option
- C) The width of the spread minus the credit received, times 100 per spread
- D) The width of the spread plus the credit received, times 100 per spread
8. You sell one 5-point-wide credit spread and collect $1.20 in credit. What is your maximum loss on that one spread?
- A) $120
- B) $500
- C) $620
- D) $380
9. On that same trade — one 5-point-wide credit spread sold for $1.20 — what is your maximum profit?
- A) $120, the credit you collected, if the spread expires worthless
- B) $380, if the underlying moves far enough
- C) $500, the full width of the spread
- D) There is no maximum; profit grows with the move
10. You buy one debit spread for $1.60. What is your maximum loss?
- A) $500, the width, no matter what you paid
- B) $160 — a debit spread can never lose more than the debit you paid
- C) $340, the width minus the debit
- D) Unlimited if the underlying gaps
11. That debit spread is 5 points wide and you paid $1.60. What is your maximum profit?
- A) $160
- B) $500
- C) $340 — the width minus the debit
- D) $660 — the width plus the debit
12. You sell an iron condor and collect a total credit of $2.00 per condor. What is your maximum profit on one condor?
- A) $300
- B) $500
- C) Unlimited if the market stays quiet for weeks
- D) $200 — the credit received, if the underlying stays between the short strikes and everything expires worthless
13. That iron condor has 5-point-wide wings on each side and you collected $2.00. What is your maximum loss on one condor?
- A) $300 — the wing width minus the credit, times 100
- B) $200 — the credit is all you can lose
- C) $500 — the full wing width
- D) $700 — the wing width plus the credit, times 100
14. You buy a 0DTE put with a 5,900 strike for $12.00. What is your breakeven at expiration?
- A) 5,912 — the strike plus the premium
- B) 5,888 — the strike minus the premium
- C) 5,900 — the strike itself
- D) 5,876 — the strike minus twice the premium
15. Why do traders treat the 8:30 AM ET data releases (such as CPI and the jobs report) as a special danger zone for 0DTE positions?
- A) Volume is lowest then, so nothing can happen
- B) Options cannot be traded until 9:30, so the risk is only theoretical
- C) A surprise number can spike the index dozens of points in minutes, and a same-day option on the wrong side can be destroyed before there is time to react
- D) The releases only affect bonds, never index options
16. At what time ET does the Federal Reserve typically release its FOMC statement on a meeting day?
- A) 8:30 AM
- B) 9:30 AM, at the open
- C) 12:00 PM, at midday
- D) 2:00 PM
17. What usually defines the midday dead zone for 0DTE trading?
- A) Volume dries up, the index chops sideways in a narrow range, and time decay quietly bleeds bought premium — often the best trade is no trade
- B) The biggest directional moves of the day happen there
- C) Spreads tighten to zero and options become risk-free
- D) Gamma disappears, so premiums stop moving
18. What makes the final hour of a 0DTE session uniquely dangerous?
- A) The exchanges stop accepting closing orders
- B) Gamma peaks and premiums can double or vanish on small moves, and price can pin near a heavily traded strike into the close, trapping anyone still holding and hoping
- C) Theta stops working, so losing positions recover on their own
- D) Only institutional traders are allowed to trade it
19. The market is chopping in a 10-point range, it is 12:30 PM, you have no setup from your plan, and you feel the urge to "do something." What does the playbook say?
- A) Buy something cheap — cheap premium is always worth a shot
- B) Double your size so a small move still pays
- C) Sell an undefined-risk spread to collect the decay
- D) Sit out. No edge means no trade; most of the 0DTE day is waiting, and forcing trades in the dead zone is how premium buyers bleed out
20. How should the daily maximum loss for a 0DTE trader be set?
- A) It is whatever loss makes you stop emotionally
- B) You decide it after the second losing trade, based on how the day feels
- C) As a fixed dollar amount written down before the open — and when the account hits it, trading is over for the day, no exceptions
- D) As a percentage of whatever you made yesterday
21. One of the 0DTE risk commandments covers averaging down. What does it say?
- A) Never add to a losing expiring contract — it is a melting asset with hours to live, not an investment that deserves more capital
- B) Averaging down is fine if the premium got 50% cheaper
- C) Add once, but only in the final hour
- D) Averaging down works because expiration forces a bounce
22. What is a hard exit time in a 0DTE plan?
- A) The time your broker picks to close your positions
- B) A time you set in advance — a position still open at that time gets closed at the market, not held on hope into the most violent part of the day
- C) The moment a trade reaches breakeven
- D) 4:00 PM exactly, for every trader and every trade
23. How should a 0DTE trader size a credit or debit spread position?
- A) By how much premium they want to collect
- B) By how many contracts the account balance can technically afford
- C) By the premium price alone — cheaper is always safer
- D) By the maximum loss in dollars: contracts = the dollars you are willing to risk divided by the max loss per spread
24. You hit your daily maximum loss at 11:00 AM. A setup you like appears at 11:20. What do the commandments say?
- A) Take it — the daily cap resets when a good setup appears
- B) Take it at half size, since the setup is high quality
- C) You are done for the day. The cap exists precisely for this moment; trading past it is revenge trading, and the platform stays closed
- D) Switch to a different index product and keep trading there
25. Why do the commandments demand a smaller per-trade risk and a cap on the number of trades for 0DTE, compared with slower trading?
- A) Because trades come faster, decay punishes hesitation, and ten small emotional decisions in one morning can compound into a day that breaks the account — small size and a trade cap keep any single day survivable
- B) Because brokers charge more per 0DTE trade
- C) Because the exchange limits how much profit one trader can make per day
- D) Because 0DTE options are cheaper, so the risk is automatically the same
26. Which list belongs in a complete 0DTE pre-market prep?
- A) Yesterday's P&L and a prediction for today's close
- B) Today's catalysts and their release times, the expected move, key levels from the prior session, and your daily maximum loss written down
- C) A watchlist of twenty tickers and their earnings dates
- D) Social media sentiment and the most popular trade in the chat room
27. What must be true before you enter any 0DTE trade, according to the playbook?
- A) Another trader in the community has confirmed the idea
- B) The premium has already started moving in your direction
- C) You feel confident about the direction of the next hour
- D) The structure is chosen, the maximum loss is known in dollars, and the exit rules — profit target, stop, and time stop — are set before entry, not invented during the trade
28. Which set of exit rules matches the playbook's way of managing a 0DTE position?
- A) Hold every trade to expiration and let the outcome decide
- B) Exit only when the premium reaches zero or doubles — nothing in between
- C) Pre-set exits: scale out at defined profit levels, stop out on a premium-percentage loss or an underlying level, and close by your time stop — decided calmly in advance, executed without renegotiation
- D) Decide exits after lunch, once you see how the day feels
29. Which fields belong in a 0DTE trade journal entry?
- A) The structure traded, entry and exit times, the maximum loss you allowed, and whether you followed your rules — yes or no
- B) Only the profit or loss in dollars
- C) The name of the trader you copied the idea from
- D) A screenshot of the chart and nothing else
30. In the playbook's model day, the trader refuses a tempting setup in the midday chop and ends the day flat by the close. Why was refusing the trade correct?
- A) Midday trades are against exchange rules for retail traders
- B) The setup was outside the written plan and inside the dead zone where decay works against the buyer — the win was protecting the morning's result and the account, and there is always another session tomorrow
- C) The trader was out of buying power
- D) Refusing trades is always correct, in every session and every condition
Scoring Yourself
Count your correct answers using the separate answer key. 24 or more correct (80%) is a pass. Below 24, the key points you to the exact module behind every miss — re-study those modules, redo their Check Yourself questions, and retake this exam before you trade 0DTE with real money.