Selling straddle/strangle on expiry

R

rohann09

I have been trading short gamma through strangle and straddle on index options on expiry day .I manage the position actively, to avoid gamma losses. I know traders who doing it in large sizes .
Annual return -20 to 40 percent with max one day loss of 2-3 percent on any given expiry

What has been your experience in Spx and nasdaq on 0dte options
 
Too lazy to backtest,but IMHO,you are looking at a certain death trading 0 DTE short gamma in that manner.

Question of when,not If..

And how big would you possibly put those trades on?
 
rohann09 said:
I have been trading short gamma through strangle and straddle on index options on expiry day .I manage the position actively, to avoid gamma losses. I know traders who doing it in large sizes .
Annual return -20 to 40 percent with max one day loss of 2-3 percent on any given expiry

What has been your experience in Spx and nasdaq on 0dte options
More...

Did you really mean -20?
 
taowave said:
Too lazy to backtest,but IMHO,you are looking at a certain death trading 0 DTE short gamma in that manner.

Question of when,not If..

And how big would you possibly put those trades on?
More...

I personally know a trader who does 20 million with a semi automatic setup using a software which can adjust trade based on delta
 
So of the 52 expiry you end up making 2 percent around 60-65 percent time and lose 2 percent other 40 percent ..hard system stop loss at 2 percent
 
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