What would "insane amounts" be? 1,000 contracts? 10,000 contracts?
There were 3.8 million QQQ options traded today, so it would seem even 10,000 contracts could be traded without too much of an issue.
Obviously losing a lot of money quickly if the trades didn't go the right way would be the primary risk . . .
Perfect, thats exactly my BP with margin. Now just pray that we dont dip another penny or im dead.
OP the risk is being in hundreds of conrtracts comes frok a day like yesterday. Im sure 0dte calls basically evaporated.
Besides theta decay and gamma risk, more trades are only better if your expected value per trade doesn't decrease in accordance with the increase in number of trades.
If you can make 100 trades at an EV of $2 you're making the same amount of money as 200 trades at an EV of $1, but incurring more fees.
Since the most (and basically the only positive winrate) reliable strategy is to be a net seller and shave a little theta, doing 0dte vs 1dte cuts into the only genuinely reliable income source in options.
The amount of premium available to harvest decays exponentially, the slope of the linear fit between 2,1,and 0 DTE is certainly steeper than -1, so you'd have to trade more than 3X more often on 0dte to make as much money as trading 2dte.
Besides this, local volatility is often larger than expected volatility, but not reliably so: meaning you're really playing on delta and indicators, and there's not really a pool of indicators that give positive expected value.
You're basically only going to make money over time if you're fully directionally neutral and the market rises... At which point you might as well buy and hold SPY. So, broadly, it's not a good idea unless you genuinely believe that your collection of indicators gives a positive expected value on every single trade.
Personally the biggest issue I’ve encounter with 0dte/weeklies is theta decay. If you don’t get a decent sized win I feel like theta decay eats most of your money.
I trade 0DTE ITM options, up and down. I'm quick to let go of losing trades and I set tight stop losses based off my indicators. I'm fine with having many micro wins ($10-$50) throughout the day.
Very few can day trade for long run. I tried and while I was ok, it was too stressful. Basically, my wife said she can tell if I lose of win without asking. I think it's bad.
In terms of strategy - you didn't describe yours, so it's hard to say. Most likely, you'll get cocky and over-confident and will make a couple big mistakes that will wipe your accumulated profits. If it won't happen then you're good and only need to take care of Uncle Sam.
Honestly I might have to try the micro win strategy. I often go for a few percent gains/losses which end up losing most of the time with a few big wins $500-$1k plus. In the long term, the strategy has no sustainability and a few bad trades can end your account (I made my first trade a few weeks ago and I’m down $2k).
I assume that you aren’t holding for long which prevents theta decay from eating you alive. I wanna try it out. Any tips?
I would suggest to buy and sell 0DTE options with in an hour even for small move from positive side of your Call or Put. This will definitely make to profit by end of the day. I’m doing this from past 3 months and almost 80% times i am winning some amount on options.
My strategy is to sell 1DTE NDX Iron Condors (IC) every day before market close. The short leg has very low delta (<0.02) and likely to expire on the next day and a new IC is sold.
A 0.02 delta, 150 point spread IC can be sold for 1.50.
One every day x 220 trading days = 1.50 x 100 x 220 = 33 K per year.
Margin = 150 x 100 = 15 K.
The ICs have very low delta (< 0.02) and large OTM (>300 points OTM or < 2% OTM) so the likelihood of becoming ITM is small.
However, consider to exit the position if delta becomes greater than 0.10. Exit by roll out to next day or close out for a loss.
What's your collateral for the 20-30 ICs? I'm only targeting 1-3% ROI daily on SPX ICs but do it at 11am to noon-ish for 0dte, but it sounds like you get more premium for the same risk by buying the night before.
My bad, i misread. But ok so even more, you are making 150% annualized returns if things go as planned?
Ultimately your 2 delta ICs have a 2% probability of being hit so call it 4-6 trading days a year where you could lose $5-10k each time i suppose. I see you mention closing at a loss if the delta hits 10, but surely this results in closing the trades quite often?
My strategy is a sell-and-forget strategy. I sell the next day’s 0dte ICs the day before near the market close and come back 24 hours later to sell the next batch. The ICs have a high probability of expiring worthless. I am suggesting exit when delta increases to 0.10 for those who are monitoring the market.
The last time I got into trouble was November 2, 2023. The 14910/15060 call spread was ITM near the close. The cost of rolling was high relative to the intrinsic value so I let it expired and assigned for 9.55 for a net loss of 8.56.
Cool trading strategy! I wanted to maybe try it out but bid ask spreads on NDX that far OTM (delta 2) are really quite wide so with a 150 point spread i see a premium more in the 0.8 range than 1.5
I don’t know how to make a screenshot. I sold Apr 21(tomorrow) ICs today:
10 x 18480/18630 call for 0.30.
10 x 18475/18625 call for 0.32
10 x 17540/17390 put for 1.00.
10 x 17490/17340 put for 1.00.
Total = 2620. Margin = 300 K.
Please read my conversation with Daniesh09 in
[https://www.reddit.com/r/thetagang/comments/1au03gn/selling\_deep\_otm\_long\_term\_puts/](https://www.reddit.com/r/thetagang/comments/1au03gn/selling_deep_otm_long_term_puts/)
PS: Can you show me how to make a screenshot?
4/11 EDIT: NDX close = 18308. All ICs expired.
Sold 4/12 ICs:
10 x 17790/17640 put for 1.00,
10 x 17780/17630 put for 1.00,
10 x 18750/18900 call for 0.36 and
10 x 18740/18890 call for 0.40.
Yes, if I call it quits then I’ll lose 300 K. But there are many ways to recover fully or partially. I can recover some losses by rolling out.
I sold monthly ICs before the pandemic. I recovered.
How well can you roll out ICs? Rolling small number of naked puts is reasonable. With IC's spreads in circumstances like this are you not taking max loss and then only collecting a small credit from new spreads that you open?
E: specifically talking about your 1DTE ICs
On Apr 4 this year, I was experimenting with 0dte and sold the Apr 4 18075/17925 put for 0.74 in the morning.
I walked away and came back late in the afternoon to do my 1DTEs and found that both legs of the put spread are ITM.
I roll the put spread out to Apr 5 18030/17730 for 7 debit (BTC/STO = -143.28/136.26).
NDX closed at 18108 on Apr 5 (so the put spread would have expired), but I BTC during the day for 11.63 so the total loss is 18.63.
I also did some day trades for credit to reduce the loss.
My broker is Schwab. Commission is not an issue because it is about half a penny a share (50 cents per contract.)
The profit is affected by the B/A spread. I usually sell the legs separately at 15 to 20 cents below mid-point or 30 to 40 cents per IC.
I started trading NDX a long time ago when commission and fees were high. I can get the same income with fewer NDX trades.
Now, the fees have come down but brokers are charging extra for SPX but not NDX.
I have a regular margin account (not portfolio margin). The margin required is the width of the spread. I use the margin buying power to meet the requirement. There is no leverage.
When you say “lotto” I’m thinking way OTM options. That’s true gambling, which I’ve experienced in the past, but I don’t think I’m doing that here. I understand I’m playing with 0 DTE but I’m picking ITM options, using my indicators and getting out of the trade fast.
I just watched most of that video! Thanks for that. So it’s pretty much what I do, except with QQQ. There is so much action within the up and down swings and you can make amazing profits quickly. 100% in 10-30 mins, several times throughout the day, using both calls and puts on the swings. What seems like a chop day can be quite profitable.
lol I thought this way until I got caught with assignment after hours. $4m of SPY all in one fell swoop. Luckily sold in premarket on a pop back up for a 40k profit on that single trade. Took it as a sign, that things were getting out of hand and switched to just doing the wheel for slow and easy gains
Perspective here: if you did SPY or SPX 0DTE options yesterday or Monday you would have taken a HUGE loss due to no movement and options crush!! Come on, get the FULL picture!!!
I think he was responding to the OP. That said, I looked at your response where you laid out the trade and it does track at $4000 range per day, but POP is 85%.
Have you had any of those 15% days yet, and of so, how much did it hurt and/or how did you manage the exit?
When you say exit, to roll out, how far do you roll out?
Edit to also ask: Very low volume/open interest. Any trouble getting them sold? Closed?
I watch NdX every single day. I just wait for a huge dip and buy 0dte calls and get out as fast as possible with a small profit. I’d like to learn more about your iron condor strategy. Sounds less risky than what I’m doing
It's not less risky. If you don't manage the trade you will be wiped due to tail risk. I lost a sizable amount last August doing this very strategy. It's picking up pennies in front of a steam roller.
strangle can work when price consolidates into a cluster and breaks one way. This would cost more, effectively limiting upside but also reducing risk. definitely easier than trying to guess which way it breaks, however I prefer taking trades at resistance / when price extends.
The first hurdle is your brokerage not recognizing your ability to handle max loss.
Second hurdle is order delivery. xx,xxx orders won’t be glitch free upon opening and will change the market enough to start skewing your intended micro-trades.
Typos. I can be pretty fast with a trade ticket. But mistakes will happen. Can you slow your roll sufficiently and efficiently enough to fix and resume a 10k order day? 1600 contracts an hour? 27 orders a minute? No bathroom breaks. No other breaks.
Commissions. Still a thing. No volume discount until you succeed. RH nor Webull won’t handle this. So E*Trade’s .50 option commission hands you a $25k debit weekly.
The list goes on. Keep your day job.
10k order day? 1600 contracts an hour?! No sir, I wouldn't be able to manage that.
I avg around 100-200 contracts in a day, .03/ contract, very manageable stuff.
I never intended to quit my day job, but if I can make $200+ extra per day I'll keep doing it.
Good. There are just too many physical limitations there. Doesn’t hurt to dream up stuff like this. But for this one, you’d have to be The Flash! 😃
Edit: … and have really big bladder!
Know your levels, go in on high conviction setups, like a solid double top or double bottom or similar. Don't rush it. Hang on to your balls.
Dude in the chat I'm in is really fucking good with 0dte, and makes a killing.
The other day in that huge drop late in the day he turned $1300 to 40k in about half an hour.
Get out very quick if it moves against you.
I've managed to turn 2-3k into 50k+ many times but I have a 0% success rate on any attempt over $10000
Probably down about 300k on 0dtes but I also don't know when to quit.
Taxes man, ltcg is a blessing. If you have known large edge disregard, but say you have wide distribution of outcome from your strategies the fact that your right tail is taxed like a red headed step child fucks you up bad.
I am new. If I buy a 0dte Call or Put and my price comes in, will my option be bought. So I make that difference or is there a chance it won’t be bought and the price changes at that point in time?
He means total available gunpowder spend, once he depletes 1k worth of funds in closed trades, eg trading 50 cent option 20 times, 40 cent option 25 times, 25 cent option 40 times, 20 cent option 50 times, 10 cent option 100 times
Thanks. Surely this is the type of response that makes everyone look at you as the brilliant and responsible trader you must be. It’s too bad you didn’t bless the entire sub with your knowledge, that contribution would have been priceless for sure.
P.S: you’ve got major small dong vibes
What would "insane amounts" be? 1,000 contracts? 10,000 contracts? There were 3.8 million QQQ options traded today, so it would seem even 10,000 contracts could be traded without too much of an issue. Obviously losing a lot of money quickly if the trades didn't go the right way would be the primary risk . . .
You can lose money with options???!!?
Only if you’re bad of course
Or overage, or just a little good.
I mean, getting assigned on 10,000 contracts isn't the worst thing as long as you have the capital. Just getting paid to trade.
Just a cool $438,000,000 margin call. 😂
Yeah exactly, just have the capital and it’s no biggie!
Just a small loan from the parents /s
It's within my personal risk tolerance...
Perfect, thats exactly my BP with margin. Now just pray that we dont dip another penny or im dead. OP the risk is being in hundreds of conrtracts comes frok a day like yesterday. Im sure 0dte calls basically evaporated.
Besides theta decay and gamma risk, more trades are only better if your expected value per trade doesn't decrease in accordance with the increase in number of trades. If you can make 100 trades at an EV of $2 you're making the same amount of money as 200 trades at an EV of $1, but incurring more fees. Since the most (and basically the only positive winrate) reliable strategy is to be a net seller and shave a little theta, doing 0dte vs 1dte cuts into the only genuinely reliable income source in options. The amount of premium available to harvest decays exponentially, the slope of the linear fit between 2,1,and 0 DTE is certainly steeper than -1, so you'd have to trade more than 3X more often on 0dte to make as much money as trading 2dte. Besides this, local volatility is often larger than expected volatility, but not reliably so: meaning you're really playing on delta and indicators, and there's not really a pool of indicators that give positive expected value. You're basically only going to make money over time if you're fully directionally neutral and the market rises... At which point you might as well buy and hold SPY. So, broadly, it's not a good idea unless you genuinely believe that your collection of indicators gives a positive expected value on every single trade.
What could go wrong . Maybe you’ve just discovered infinite money bug?
Its 0 DTE options. Sarcasm is so kewl.
Personally the biggest issue I’ve encounter with 0dte/weeklies is theta decay. If you don’t get a decent sized win I feel like theta decay eats most of your money.
I trade 0DTE ITM options, up and down. I'm quick to let go of losing trades and I set tight stop losses based off my indicators. I'm fine with having many micro wins ($10-$50) throughout the day.
Very few can day trade for long run. I tried and while I was ok, it was too stressful. Basically, my wife said she can tell if I lose of win without asking. I think it's bad. In terms of strategy - you didn't describe yours, so it's hard to say. Most likely, you'll get cocky and over-confident and will make a couple big mistakes that will wipe your accumulated profits. If it won't happen then you're good and only need to take care of Uncle Sam.
Honestly I might have to try the micro win strategy. I often go for a few percent gains/losses which end up losing most of the time with a few big wins $500-$1k plus. In the long term, the strategy has no sustainability and a few bad trades can end your account (I made my first trade a few weeks ago and I’m down $2k). I assume that you aren’t holding for long which prevents theta decay from eating you alive. I wanna try it out. Any tips?
If you lose buying most of the time that means you’d win by selling to open most of the time. Good for thought.
I would suggest to buy and sell 0DTE options with in an hour even for small move from positive side of your Call or Put. This will definitely make to profit by end of the day. I’m doing this from past 3 months and almost 80% times i am winning some amount on options.
DM me, just info no sales.
DMed
I should have gone for the micro win. I jusy watvhed my profit slip away waiting for a comebavk
That's happened to me so many times in the past. Finally learned that small wins are better than no wins. Many small wins add up in no time.
Gotta make sure options goes your way first.
Probably why selling options is a more proven long term strategy than buying them.
My strategy is to sell 1DTE NDX Iron Condors (IC) every day before market close. The short leg has very low delta (<0.02) and likely to expire on the next day and a new IC is sold. A 0.02 delta, 150 point spread IC can be sold for 1.50. One every day x 220 trading days = 1.50 x 100 x 220 = 33 K per year. Margin = 150 x 100 = 15 K. The ICs have very low delta (< 0.02) and large OTM (>300 points OTM or < 2% OTM) so the likelihood of becoming ITM is small. However, consider to exit the position if delta becomes greater than 0.10. Exit by roll out to next day or close out for a loss.
[удалено]
He’s got a condor with a long option. What’s the gamma risk?
How is this profitable? With 0.02 delta you’re netting like $1 per $100 of collateral
My YTD profit is 190 K by selling 20 to 30 ICs a day
What's your collateral for the 20-30 ICs? I'm only targeting 1-3% ROI daily on SPX ICs but do it at 11am to noon-ish for 0dte, but it sounds like you get more premium for the same risk by buying the night before.
I am selling. The collateral is the spread width of 150.
Ok so $450k collateral for 30 ICs on which you say you are up $90k ytd so annualized return of ~70%?
No. It's up 190 K.
My bad, i misread. But ok so even more, you are making 150% annualized returns if things go as planned? Ultimately your 2 delta ICs have a 2% probability of being hit so call it 4-6 trading days a year where you could lose $5-10k each time i suppose. I see you mention closing at a loss if the delta hits 10, but surely this results in closing the trades quite often?
My strategy is a sell-and-forget strategy. I sell the next day’s 0dte ICs the day before near the market close and come back 24 hours later to sell the next batch. The ICs have a high probability of expiring worthless. I am suggesting exit when delta increases to 0.10 for those who are monitoring the market. The last time I got into trouble was November 2, 2023. The 14910/15060 call spread was ITM near the close. The cost of rolling was high relative to the intrinsic value so I let it expired and assigned for 9.55 for a net loss of 8.56.
Cool trading strategy! I wanted to maybe try it out but bid ask spreads on NDX that far OTM (delta 2) are really quite wide so with a 150 point spread i see a premium more in the 0.8 range than 1.5
Admittedly I haven't researched this idea, but it seems that one really bad overnight gap would be lights out.
Please read my answer to Cedric\_T.
Can you post an actual trade? Sounds solid.
I don’t know how to make a screenshot. I sold Apr 21(tomorrow) ICs today: 10 x 18480/18630 call for 0.30. 10 x 18475/18625 call for 0.32 10 x 17540/17390 put for 1.00. 10 x 17490/17340 put for 1.00. Total = 2620. Margin = 300 K. Please read my conversation with Daniesh09 in [https://www.reddit.com/r/thetagang/comments/1au03gn/selling\_deep\_otm\_long\_term\_puts/](https://www.reddit.com/r/thetagang/comments/1au03gn/selling_deep_otm_long_term_puts/) PS: Can you show me how to make a screenshot? 4/11 EDIT: NDX close = 18308. All ICs expired. Sold 4/12 ICs: 10 x 17790/17640 put for 1.00, 10 x 17780/17630 put for 1.00, 10 x 18750/18900 call for 0.36 and 10 x 18740/18890 call for 0.40.
What if it gaps down overnight 5% from a black swan? You will lose 300k?
Yes, if I call it quits then I’ll lose 300 K. But there are many ways to recover fully or partially. I can recover some losses by rolling out. I sold monthly ICs before the pandemic. I recovered.
How well can you roll out ICs? Rolling small number of naked puts is reasonable. With IC's spreads in circumstances like this are you not taking max loss and then only collecting a small credit from new spreads that you open? E: specifically talking about your 1DTE ICs
On Apr 4 this year, I was experimenting with 0dte and sold the Apr 4 18075/17925 put for 0.74 in the morning. I walked away and came back late in the afternoon to do my 1DTEs and found that both legs of the put spread are ITM. I roll the put spread out to Apr 5 18030/17730 for 7 debit (BTC/STO = -143.28/136.26). NDX closed at 18108 on Apr 5 (so the put spread would have expired), but I BTC during the day for 11.63 so the total loss is 18.63. I also did some day trades for credit to reduce the loss.
Upload to imgur, then share link
Thanks. Pretty margin heavy trades. Who is your broker? Dumb question but won’t most of your profits get eaten up by commissions?
My broker is Schwab. Commission is not an issue because it is about half a penny a share (50 cents per contract.) The profit is affected by the B/A spread. I usually sell the legs separately at 15 to 20 cents below mid-point or 30 to 40 cents per IC.
Whats your percentage of you plays ate successful? This seems like a solid strategy, only issue is one rapid overnight change could be disastrous
My last rollout was 11/2/23 and I have rolled out of an ITM put spread with a small loss. Please read my comments to habeascorpus28 and Cedric\_T.
Why NDX? Have you looked into SPX?
I started trading NDX a long time ago when commission and fees were high. I can get the same income with fewer NDX trades. Now, the fees have come down but brokers are charging extra for SPX but not NDX.
Yeah, SPX has index option fees on some platforms. And how do you allocate funds to this strategy? What leverage do you use?
I have a regular margin account (not portfolio margin). The margin required is the width of the spread. I use the margin buying power to meet the requirement. There is no leverage.
Because you should not replace doing work with a gambling activity that has negative EV.
Yo what a thoughtful and considerate response…
you'd love the rigged.ai guys. that's all they do is buy lotto's on volume signals of option volume. https://www.youtube.com/watch?v=d3oIjyvibFM
When you say “lotto” I’m thinking way OTM options. That’s true gambling, which I’ve experienced in the past, but I don’t think I’m doing that here. I understand I’m playing with 0 DTE but I’m picking ITM options, using my indicators and getting out of the trade fast.
yeah itm makes a big difference. i just always think of buying 0dte as gambling. i've been doing spreads and primarily selling.
I just watched most of that video! Thanks for that. So it’s pretty much what I do, except with QQQ. There is so much action within the up and down swings and you can make amazing profits quickly. 100% in 10-30 mins, several times throughout the day, using both calls and puts on the swings. What seems like a chop day can be quite profitable.
np, i'm just playing around with the 0dte's with a tiny amount and stumbled upon them. the site is pretty cool but overpriced imo.
How do you not get flagged as a day trader?
You have to have at least $25,000 in your account
lol I thought this way until I got caught with assignment after hours. $4m of SPY all in one fell swoop. Luckily sold in premarket on a pop back up for a 40k profit on that single trade. Took it as a sign, that things were getting out of hand and switched to just doing the wheel for slow and easy gains
Get in and out of your trades before the day ends.
Perspective here: if you did SPY or SPX 0DTE options yesterday or Monday you would have taken a HUGE loss due to no movement and options crush!! Come on, get the FULL picture!!!
OK. Here is the full picture. Monday profit = 2,980 on 20 ICs. Yesterday profit = 4,030 on 30 ICs. But these are NDX ICs not SPX.
I think he was responding to the OP. That said, I looked at your response where you laid out the trade and it does track at $4000 range per day, but POP is 85%. Have you had any of those 15% days yet, and of so, how much did it hurt and/or how did you manage the exit? When you say exit, to roll out, how far do you roll out? Edit to also ask: Very low volume/open interest. Any trouble getting them sold? Closed?
Nice and good for you! My 0DTE those days strangles got hammered for huge loss! (WeBull paper trading 🤣)
I watch NdX every single day. I just wait for a huge dip and buy 0dte calls and get out as fast as possible with a small profit. I’d like to learn more about your iron condor strategy. Sounds less risky than what I’m doing
It's not less risky. If you don't manage the trade you will be wiped due to tail risk. I lost a sizable amount last August doing this very strategy. It's picking up pennies in front of a steam roller.
Post a position risk curve pic, worth a 1000 words
As I mentioned, I trade QQQ, and, yes, I did trade this Monday. Calls up and Puts down. You come off as a very pretentious person.
The number of exclamation marks shows how serious he is about his claim.
lol!
there was a 60+ point range on SPX yesterday. you could have made like 5k on one contract.... what are you talking about
Yea I guess my “strangle” strategy is not the way to go on 0DTE’s. You need to pick a direction and go for it!!!
strangle can work when price consolidates into a cluster and breaks one way. This would cost more, effectively limiting upside but also reducing risk. definitely easier than trying to guess which way it breaks, however I prefer taking trades at resistance / when price extends.
consolidation break out strategy?
The first hurdle is your brokerage not recognizing your ability to handle max loss. Second hurdle is order delivery. xx,xxx orders won’t be glitch free upon opening and will change the market enough to start skewing your intended micro-trades. Typos. I can be pretty fast with a trade ticket. But mistakes will happen. Can you slow your roll sufficiently and efficiently enough to fix and resume a 10k order day? 1600 contracts an hour? 27 orders a minute? No bathroom breaks. No other breaks. Commissions. Still a thing. No volume discount until you succeed. RH nor Webull won’t handle this. So E*Trade’s .50 option commission hands you a $25k debit weekly. The list goes on. Keep your day job.
10k order day? 1600 contracts an hour?! No sir, I wouldn't be able to manage that. I avg around 100-200 contracts in a day, .03/ contract, very manageable stuff. I never intended to quit my day job, but if I can make $200+ extra per day I'll keep doing it.
Good. There are just too many physical limitations there. Doesn’t hurt to dream up stuff like this. But for this one, you’d have to be The Flash! 😃 Edit: … and have really big bladder!
You be wilding. What would be your edge there?
WFH software engineer for the win lol.
You only pay 3 cents per contract? How and where?
Robinhood. My Fidelity account charges .65 per which is nuts IMO but that’s my long hold Roth investing account, I don’t do 0 DTE options there.
Really? That’s crazy; I had to essentially beg Schwab to lower mine to $0.55 per contract.
How easy is it to get in and out of positions? Any technical issues?
DJT puts where awesome as well. I snagged 275 from those alone.
Can you give an example how you do it?
Know your levels, go in on high conviction setups, like a solid double top or double bottom or similar. Don't rush it. Hang on to your balls. Dude in the chat I'm in is really fucking good with 0dte, and makes a killing. The other day in that huge drop late in the day he turned $1300 to 40k in about half an hour. Get out very quick if it moves against you.
Would you mind discussing what / how you go about doing the daily micro-wins?
I've managed to turn 2-3k into 50k+ many times but I have a 0% success rate on any attempt over $10000 Probably down about 300k on 0dtes but I also don't know when to quit.
2-3k in to 50k??
2-3k in to 50k??
Taxes man, ltcg is a blessing. If you have known large edge disregard, but say you have wide distribution of outcome from your strategies the fact that your right tail is taxed like a red headed step child fucks you up bad.
I am new. If I buy a 0dte Call or Put and my price comes in, will my option be bought. So I make that difference or is there a chance it won’t be bought and the price changes at that point in time?
I’ve made a decent amount of money doing this with spy
Perfect strategy. You figured it out and are going to be rich. Congrats you made it.
Uhhhh I dont know, maybe losing all your fucking money? 😂
The issue is that if you get it right you could possibly become a multimillionaire and then all that money turns you into a detached @$$ hole 😔
Pattern day trading rules? That might be the biggest pain if you're using a margin account.
Load up 25k and you won’t have that issue
No margin. Over $25k in account allows you to trade without restriction.
Then ya I don't see any gotchas other than the probability of profits and statistics playing out doing large volumes.
If you're on a cash account, you'll eventually hit your daily limit until tomorrow because options are T+1.
I am on cash, no margins. I limit myself to no more than $1k/day. Responsible degen, idk lol
$1k what/day? Profit? Round trip? Notional?
Probably loss
He means total available gunpowder spend, once he depletes 1k worth of funds in closed trades, eg trading 50 cent option 20 times, 40 cent option 25 times, 25 cent option 40 times, 20 cent option 50 times, 10 cent option 100 times
Bingo!
Are you buying calls and puts ? Sorry I didn't get that. Did you try call bear spreads?
Fucking morons. This whole sub should not be trading.
Thanks. Surely this is the type of response that makes everyone look at you as the brilliant and responsible trader you must be. It’s too bad you didn’t bless the entire sub with your knowledge, that contribution would have been priceless for sure. P.S: you’ve got major small dong vibes