Selling straddle/strangle on expiry

[maxinger]

You just need one unfortunate bad trade in selling straddle/strangle to destroy your life.

Conversely, you just need one fortunate good trade in other options strategy to retire immediately.

 

[taowave]

IF I am not mistsken,he is not taking overnight risk which is huge..

SPY/Spx is liquid enough where he should easily be filled on a market order without ignoring slippage..

Obviously, if you are a decent directional trader,Long 1 side of the 0 -1 day is a better trade..

 

[rohann09]

IF I am not mistsken,he is not taking overnight risk which is huge..

SPY/Spx is liquid enough where he should easily be filled on a market order without ignoring slippage..

Obviously, if you are a decent directional trader,Long 1 side of the 0 -1 day is a better trade..

Yes if someone has good directional strategy can add more return with open delta.
But will have more mtm swings also.

 

[polybyte]

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

I do delta neutral straddle on spx and nq 0dte options, i set stops around 30% with trailing based on atr. doing it since june and so far got returns around 2-3% per month.