Track A — 0DTE Mastery · Answer Key 7 of 7
Track A Exam — Answer Key
Answers explained, with the re-study map. Curriculum & Assessment · Team Alpha Trading
This is the answer key for the Track A Exam — 0DTE Mastery (The 0DTE Arena through The 0DTE Playbook). Keep it separate from the exam. Grade honestly: in 0DTE, a grade you fudge becomes a loss you pay for.
Pass mark: 80% — at least 24 of 30 correct. For every miss, the key names the module to re-study. Work through that module again, redo its Check Yourself questions, and retake the exam before trading 0DTE with real money.
The Answers
1. B — 0DTE stands for zero days to expiration: the option expires the same trading day you trade it. (Re-study: The 0DTE Arena)
2. C — On expiration day theta accelerates violently, so a bought option can melt toward zero even when the underlying barely moves. (Re-study: The 0DTE Arena)
3. A — Gamma peaks near expiration, so small underlying moves produce large, fast swings in a 0DTE option's delta and price. (Re-study: The 0DTE Arena)
4. D — SPX options are cash-settled and European-style, which means no shares change hands and there is no early assignment. (Re-study: The 0DTE Arena)
5. B — SPY options are American-style and settle in shares, so sellers face real early-assignment risk. (Re-study: The 0DTE Arena)
6. A — A bought option's maximum loss is the full premium: $1.50 × 100 = $150 per contract, and a 0DTE can lose all of it in minutes. (Re-study: The 0DTE Arena)
7. C — Credit spread max loss = width − credit received, times the 100-share multiplier per spread. (Re-study: 0DTE Structures)
8. D — ($5.00 − $1.20) × 100 = $3.80 × 100 = $380 maximum loss on one spread. (Re-study: 0DTE Structures)
9. A — A credit spread's maximum profit is the credit kept if it expires worthless: $1.20 × 100 = $120. (Re-study: 0DTE Structures)
10. B — A debit spread can never lose more than the debit paid: $1.60 × 100 = $160. (Re-study: 0DTE Structures)
11. C — Debit spread max profit = width − debit: ($5.00 − $1.60) × 100 = $340. (Re-study: 0DTE Structures)
12. D — An iron condor's maximum profit is the total credit received if price stays between the short strikes: $2.00 × 100 = $200. (Re-study: 0DTE Structures)
13. A — Iron condor max loss = wing width − credit: ($5.00 − $2.00) × 100 = $300 on one condor. (Re-study: 0DTE Structures)
14. B — A put's breakeven is strike − premium: 5,900 − 12.00 = 5,888. (Re-study: 0DTE Structures)
15. C — An 8:30 AM ET surprise on CPI or jobs can spike the index dozens of points in minutes, and a same-day option has no time to recover. (Re-study: 0DTE Timing & the Session Map)
16. D — The FOMC statement is released at 2:00 PM ET on meeting days. (Re-study: 0DTE Timing & the Session Map)
17. A — The midday dead zone is typically low-volume sideways chop where decay bleeds bought premium, so no trade is often the best trade. (Re-study: 0DTE Timing & the Session Map)
18. B — In the final hour gamma is at its peak and price can pin near a big strike, so holding and hoping into the close is the most dangerous seat in the arena. (Re-study: 0DTE Timing & the Session Map)
19. D — The playbook's sit-out rule: no edge means no trade, and forcing trades in the dead zone is exactly how premium buyers bleed out. (Re-study: 0DTE Timing & the Session Map)
20. C — The daily maximum loss is a fixed dollar amount written down before the open, and hitting it ends the trading day with no exceptions. (Re-study: 0DTE Risk Commandments)
21. A — Never average down an expiring contract: it is a melting asset, and adding capital to it turns one planned loss into an unplanned one. (Re-study: 0DTE Risk Commandments)
22. B — A hard exit time is set in advance, and any position still open at that time is closed — not renegotiated in the most violent part of the day. (Re-study: 0DTE Risk Commandments)
23. D — Size spreads by maximum loss: contracts = dollars you are willing to risk ÷ max loss per spread, never by how many contracts you can afford. (Re-study: 0DTE Risk Commandments)
24. C — Once the daily cap is hit, you are done; trading past it for a "good setup" is revenge trading, which is what the cap exists to prevent. (Re-study: 0DTE Risk Commandments)
25. A — 0DTE trades come fast and decay punishes hesitation, so smaller per-trade risk plus a trade-count cap keeps any single day survivable. (Re-study: 0DTE Risk Commandments)
26. B — Pre-market prep covers the day's catalysts and release times, the expected move, prior-session key levels, and the daily maximum loss in writing. (Re-study: The 0DTE Playbook)
27. D — Before entry the structure is chosen, the maximum loss is known in dollars, and profit, stop, and time-stop exits are already set — never invented mid-trade. (Re-study: The 0DTE Playbook)
28. C — The playbook manages positions with pre-set exits: scale at defined profit levels, stop on a premium-percentage or underlying level, and honor the time stop. (Re-study: The 0DTE Playbook)
29. A — A 0DTE journal entry records the structure, entry and exit times, the maximum loss allowed, and a yes-or-no on whether the rules were followed. (Re-study: The 0DTE Playbook)
30. B — Refusing an unplanned dead-zone setup protected the day's result; discipline about when not to trade is a core 0DTE skill, and tomorrow always offers another session. (Re-study: The 0DTE Playbook)
What Your Score Means
- 24–30 correct — Pass. You understand the arena, the structures, and the doctrine. Paper trade the track for at least a month before any real 0DTE size.
- 18–23 correct — Not yet. Your misses cluster somewhere; use the module codes above, re-study those modules, and retake the exam.
- Below 18 — Restart the track. The math or the risk rules are not in place yet. That is fixable with study, and far cheaper than learning it from the market.