Day trading 0DTE Condors

The hitrate is about the same, average profits per day are good. I only open 1 each day (at 9:45), he opens a lot more and closes sometimes in an early stage. Backtest is mechanical, he is trading on own rules..

 

What is your data source / provider: do you use real data or simulated data (GBM)?

 

Real data, 15 minutes. In the backtest i use the high value every 15 minutes for the stoploss.
Source of data: CBOE datashop

 

There is another famous trader named TammyChambless doing the same (ie. 0DTE, SPX, IronCondor etc).
Here's her presentation (or an interview of her presenting her work) from 2020:
"Webinar: Complete Strategy Sharing – 0DTE Credit Spreads and Iron Condors in SPX – Tammy Chambless"

Here are the slides:


Another informative source about 0DTE, referencing the above presentation:
https://optionstradingiq.com/0-dte-spx-options/

 

I get your point. By using an IC you can exactly determine your max loss (2% of net liq). With naked you had a hard time e.g. in aug 2015 (flash crash). And 80% profit a year should be enough

 

Yeah maybe you have only one position open, go naked. But once you have a couple open and have profits for the day, start buying wings?

 

It seems the purpose of the Long legs is a different one, an interesting & funny reasoning:
"It’s important to note that the purpose of the long options is not to limit risk but to minimize the cost of the position so you can collect more premium."
(Source: https://optionstradingiq.com/0-dte-spx-options/ )

Ie. it seems to be a margin issue: the IronCondor seems to require less margin than the said ShortStraddle or ShortStrangle.
Can a margin expert confirm this?
Hmm. could indeed be true, b/c IC caps the losses, ie. is less riskier than the said others.
But the above quote says it's not for this purpose . Funny and confusing...

 

Of course the margin requirement is significantly less on a condor/fly vs a straddle/strangle

 

So then the Long legs serve 2 purposes at the same time: limiting risk AND making the whole cheaper...

 

Yes,and depending whatctype of margin/asset,the difference can be enormous