I tried my first 0DTE today.

Arnie Guitar

Arnie Guitar

I tried my first 0DTE today.

-1 S&P 500 4455 Call
+1 S&P 500 4460 Call
.25 credit
It was at about 4435 at the time.

I went small because I don't think I have the whole sitch right.
Something doesn't make sense to me.

I paper traded a -10/+10 Call Credit Spread for a whole bunch more, but something didn't seem right, so paper it was.

I could not believe how FAT the S&P 500 premiums were...1/2 hour after the Fed decision was announced.
There was only 1 1/2 hour left in trading.

When are they settled?

I called my broker...twice.
Two different people didn't give me an answer that made sense to me.

I'm curious to see when they're removed due to expiration.
 
Arnie Guitar said:
I tried my first 0DTE today.

-1 S&P 500 4455 Call
+1 S&P 500 4460 Call
.25 credit
It was at about 4435 at the time.

I went small because I don't think I have the whole sitch right.
Something doesn't make sense to me.

I paper traded a -10/+10 Call Credit Spread for a whole bunch more, but something didn't seem right, so paper it was.

I could not believe how FAT the S&P 500 premiums were...1/2 hour after the Fed decision was announced.
There was only 1 1/2 hour left in trading.

When are they settled?

I called my broker...twice.
Two different people didn't give me an answer that made sense to me.

I'm curious to see when they're removed due to expiration.
More...

The spread is 5 apart and the premiums are based on that. Today is the Fed rate decision day so the volatility is larger than usual and premiums reflect that also. If it's 0 DTE as the name implies, the options would expire at the end of the day today. Congrats you made some money today.
 
Wow... 20 risk to 1 reward on a 0.5% move... why? LoL

If you did it everyday.. not even 10 losses in one year, because market moved 30 points, and you are down for the year.
 
Ken, give the man his prize…

DC60B9B5-12DB-4372-A74A-D02CF1F61783.jpeg
 
Arnie Guitar said:
I tried my first 0DTE today.

-1 S&P 500 4455 Call
+1 S&P 500 4460 Call
.25 credit
It was at about 4435 at the time.

I went small because I don't think I have the whole sitch right.
Something doesn't make sense to me.

I paper traded a -10/+10 Call Credit Spread for a whole bunch more, but something didn't seem right, so paper it was.

I could not believe how FAT the S&P 500 premiums were...1/2 hour after the Fed decision was announced.
There was only 1 1/2 hour left in trading.

When are they settled?

I called my broker...twice.
Two different people didn't give me an answer that made sense to me.

I'm curious to see when they're removed due to expiration.
More...


If you're being sincere- the presser. Premiums hold on Wednesday through the prepared remarks and Q&A. The close is usually good for *some* move- although most of FOMC-related variance tends to hit in the overnight and Thursday session historically.
 
I got the bug a little bit.
After modest success on my first try,
I did a successful Put Credit Spread on Thursday, and placed a Put Credit Spread on Friday mid morning, then mid afternoon I placed a Call Credit Spread.
I’m surprised at the volatility, it’s impressive.

So I’m 4 for 4.

Karen Supertrader’s got nuttin’ on me.
;-)
 
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