ODTE options .... pros/cons?

taowave said:
I wasnt referring to you as I am only skimming this thread...
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Besides @GoldDigger, I find everybody's questions and posts about 0DTE options are legit imo but anyway... I will have to disagree with you on your 2nd comment there. Imo, there are far better option experts here, just the ones that are remaining on ET than your option idol if he(it) can be even called an "expert".
 
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ondafringe said:
I was referring to the delta of the short strike upon entering the trade.

Yes, to the rest, but that is what I meant by an upside-down risk:reward.
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Exactly but this is what people are trying to salvage sorta speak, this upside-down risk: reward. By closing out early, yes they are still facing a loss bigger than their premium but it might still be less than if they held it to its expiration and face the big assignment.
 
taowave said:
Its hard to tell if you are selling ATM spreads for apx half the strike width or OTM spreads for pennies on the dollar width
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Well, the four SPX 0DTE put credit spreads I actually traded, the short strike was at/near a 5 delta. But I got into that Tammy Chambless thing and traded a 50-wide. Yeah, yeah, I know. lol

All four worked out, but two were touch-and-go and damn near gave me heart failure. If I ever do it again, I won't go more than a 5-wide, 10-delta. But even at that, I'd be looking at around a 9:1 risk:reward.
 
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ondafringe said:
Well, the four SPX 0DTE put credit spreads I actually traded, the short strike was at/near a 5 delta. But I got into that Tammy Chambless thing and traded a 50-wide. Yeah, yeah, I know. lol
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Ok you need to ignore that Tammy Chambless woman. I watched her video and no offense to her but she's totally clueless about options and trading them. You are not going to do well following what she proposed in her videos.

ondafringe said:
All four worked out, but two were touch-and-go and damn near gave me heart failure. If I ever do it again, I won't go more than a 5-wide.
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Imo, there is really no set strike spread. Everything depends on what you can get from the premium and where the market is going afterward and by how much.
 
TheDawn said:
Ok you need to ignore that Tammy Chambless woman. I watched her video and no offense to her but she's totally clueless about options and trading them. You are not going to do well following what she proposed in her videos.

Imo, there is really no set strike spread. Everything depends on what you can get from the premium and where the market is going afterward and by how much.
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Yes, still have a lot to learn before I decide whether to try options again. As far as my past options trades, I'm lucky to be alive! lol
 
0DTE options could turn 5% intraday market decline into 25% rout -JPMorgan
Ankika Biswas and Medha Singh - Reuters
Trading in new near-dated U.S. options contracts can supercharge volatility in U.S. stocks, potentially leading to tremendous intraday declines, analysts at JPMorgan said.
The U.S. equity options market has seen a rise in the trading of options contracts set to expire at the end of the trading day - dubbed 0DTE (zero day to expiry) options - with their daily notional value rising to about $1 trillion, according to JPMorgan data.
/jlne.ws/3YnsSUd
 
I’ve learned my lesson with 0DTE unless it’s a < $1 $SPX option close to price and I have analysis showing it can move much lower I just stick with 3+ DTE theta burn is real by cost it just doesn’t make sense to buy 0DTE unless ur really good at closing the losing trade
 
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