How A Super-Cheap, Super-Volatile New Options Strategy Has Emerged To Help The Pros Cream The Little

[ETJ]

February 28, 2023



How A Super-Cheap, Super-Volatile New Options Strategy Has Emerged To Help The Pros Cream The Little Guys
Jon Markman - Forbes
Volatility is increasing for systemic reasons, and that is a big opportunity for long-term investors.
The S&P 500 closed unchanged on Tuesday, yet behind-the-scenes traders were frantically buying and selling. It's a new reality driven by zero-day-to-expiry options, a relatively new investment tool.
/jlne.ws/3EIx7T2

 

[M.W.]

Weak article. No drama, no details, I was curious to learn why so many trade those contracts, what makes them think they have a chance while constantly losing. Not talking about the few pros who identified an edge but the masses. But the particle (as usual for Forbes) delivers none of that.

February 28, 2023



How A Super-Cheap, Super-Volatile New Options Strategy Has Emerged To Help The Pros Cream The Little Guys
Jon Markman - Forbes
Volatility is increasing for systemic reasons, and that is a big opportunity for long-term investors.
The S&P 500 closed unchanged on Tuesday, yet behind-the-scenes traders were frantically buying and selling. It's a new reality driven by zero-day-to-expiry options, a relatively new investment tool.
/jlne.ws/3EIx7T2

 

[TheDawn]

February 28, 2023



How A Super-Cheap, Super-Volatile New Options Strategy Has Emerged To Help The Pros Cream The Little Guys
Jon Markman - Forbes
Volatility is increasing for systemic reasons, and that is a big opportunity for long-term investors.
The S&P 500 closed unchanged on Tuesday, yet behind-the-scenes traders were frantically buying and selling. It's a new reality driven by zero-day-to-expiry options, a relatively new investment tool.
/jlne.ws/3EIx7T2

More volatility, more $$ for us!!

 

[TheDawn]

Weak article. No drama, no details, I was curious to learn why so many trade those contracts, what makes them think they have a chance while constantly losing.

"This extreme short-term structure offers a big advantage for speculators. Options give the holder the right to buy or sell an asset at a fixed price, by a given date. However, a large portion of the cost of an option is based on the life of the contract, or time value. 0DTE options largely eliminate time value, thereby creating greater leverage.


A well-timed 0DTE option can produce 1x, 2x, and even 3x daily returns. The prospect of huge profits has lured legions small speculators, and all that this implies."

Stated clearly in the article. I guess you didn't read it and just decided to troll as usual? LOL

 

[M.W.]

This is basically the option definition from investopedia. Zero insights nor details beyond the mere definition. No wonder you get constantly owned by @destriero

"This extreme short-term structure offers a big advantage for speculators. Options give the holder the right to buy or sell an asset at a fixed price, by a given date. However, a large portion of the cost of an option is based on the life of the contract, or time value. 0DTE options largely eliminate time value, thereby creating greater leverage.


A well-timed 0DTE option can produce 1x, 2x, and even 3x daily returns. The prospect of huge profits has lured legions small speculators, and all that this implies."

Stated clearly in the article. I guess you didn't read it and just decided to troll as usual? LOL

 

[TheDawn]

This is basically the option definition from investopedia. Zero insights nor details beyond the mere definition. No wonder you get constantly owned by @destriero

Yes I do get owned by that @destriero creature, yes I am very scared of it, LOL I freely admit that, but that doesn't prevent me from owning you...LOL

And I wasn't even trying to own you in my previous comment or whatever. I was just pointing out the fact that the article explained very well why the 0DTE options are so attractive to small investors and it's not by a mere definition of options. I guess you don't know enough about options to realize that. That's fine. Stay that way and troll mindlessly. Just allows me to make more profit in the market.

 

[schizo]

And I wasn't even trying to own you in my previous comment or whatever. I was just pointing out the fact that the article explained very well why the 0DTE options are so attractive to small investors and it's not by a mere definition of options.

But seriously, what's the difference between 0DTE and a roulette wheel? CME has been turning into a damn casino lately, churning out all these gambling products. You think they do this to lure advanced traders? It's the small fries, the most vulnerable, that they're after and that's what so friggin' sick about CME.

 

[M.W.]

Me trolling allows you to increase your profits? How idiotic are you? One more dumb reply from you and you end up on my block list. Some like you are just so ludicrously stupid any additional second conversing with you is wasted.

Yes I do get owned by that @destriero creature, yes I am very scared of it, LOL I freely admit that, but that doesn't prevent me from owning you...LOL

And I wasn't even trying to own you in my previous comment or whatever. I was just pointing out the fact that the article explained very well why the 0DTE options are so attractive to small investors and it's not by a mere definition of options. I guess you don't know enough about options to realize that. That's fine. Stay that way and troll mindlessly. Just allows me to make more profit in the market.

 

[M.W.]

Concur, basically pulling unassuming individuals further and further into higher frequency plays with lesser and lesser edge on their side.

But seriously, what's the difference between 0DTE and a roulette wheel? CME has been turning into a damn casino lately, churning out all these gambling products. You think they do this to lure advanced traders? It's the small fries, the most vulnerable, that they're after and that's what so friggin' sick about CME.

 

[zdreg]

A few accounts will blow up. Then the broker will create house requirements which are much higher than the legal requirements