I think it depends on how good you are at market direction. However, from my limited-options perspective, yesterday and today would have been good days to sell call spreads a little before Powell started flapping his gums -- premiums were probably elevated due to high IV, and as soon as he opened his mouth, the market sold off. I'm guessing that's what the OP did.
Day trading $SPX vertical call spreads with 0DTE
- Thread starter BMK
- Start date
I think it depends on how good you are at market direction. However, from my limited-options perspective, yesterday and today would have been good days to sell call spreads a little before Powell started flapping his gums -- premiums were probably elevated due to high IV, and as soon as he opened his mouth, the market sold off. I'm guessing that's what the OP did.
That’s not the point, if no consistency, it is gambling. OP could have short 1 ES and made $3k yesterday if he was just betting direction.
IMO, even with consistency, you're still gambling -- you're gambling on your consistency holding up.
And your original comment wasn't about being being able to make more money trading ES vs SPX 0DTE credit spreads, which, IMO, you can, so I agree with you on that. You said you can't beat SPX 0DTE credit spreads because "1-2 bad weeks you will give back all you pocketed." Again, true, but the same can be said for trading ES.
My point is, if you are good with direction and good with your entry, you *should* be able to make money trading either one.
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I have a proprietary secret indicator that determines exactly when to close each spread. I'm still tweaking it. When I get it perfected, I'm going to sell it on a website for $350/month. If I get enough subscribers, I won't have to trade anymore.
Just kidding.
I don't have a good answer to your question. It somehow felt like the right time to cut the risk and get out. Some of this may be pure luck LOL
Then you should have sold call spreads.
And on days like today, if you were long ES, you also got run over.
Yes indeed, see my post in ES tread, blood on the street, have a drawdown over $2k.
the difference is that ES can bounce back, ODTE you are cash settled today, dead body.
I have attached a screenshot of today's activity in SPX options...
I am still learning how to capture images form the Schwab account. The image is tiny, but the resolution is very good, and if you magnify the image, you can read the text without any problem.
An earlier post suggested adding timestamps. I can only get that from the order history, and my efforts to get a decent screenshot have not been very productive. If you want to see the timestamps, you'll have to open the attached .csv file.
I am still learning how to capture images form the Schwab account. The image is tiny, but the resolution is very good, and if you magnify the image, you can read the text without any problem.
An earlier post suggested adding timestamps. I can only get that from the order history, and my efforts to get a decent screenshot have not been very productive. If you want to see the timestamps, you'll have to open the attached .csv file.
