Day trading $SPX vertical call spreads with 0DTE

Discussion in 'Journals' started by BMK, Mar 8, 2023.

  1. ondafringe

    ondafringe

    I think it depends on how good you are at market direction. However, from my limited-options perspective, yesterday and today would have been good days to sell call spreads a little before Powell started flapping his gums -- premiums were probably elevated due to high IV, and as soon as he opened his mouth, the market sold off. I'm guessing that's what the OP did.
     
    #11     Mar 9, 2023
  2. mervyn

    mervyn

    That’s not the point, if no consistency, it is gambling. OP could have short 1 ES and made $3k yesterday if he was just betting direction.
     
    #12     Mar 9, 2023
    MACD likes this.
  3. newwurldmn

    newwurldmn

    I suspect there’s edge in selling 0dte but as you said the sharpe will be very low.



     
    #13     Mar 9, 2023
  4. ondafringe

    ondafringe

    IMO, even with consistency, you're still gambling -- you're gambling on your consistency holding up.

    And your original comment wasn't about being being able to make more money trading ES vs SPX 0DTE credit spreads, which, IMO, you can, so I agree with you on that. You said you can't beat SPX 0DTE credit spreads because "1-2 bad weeks you will give back all you pocketed." Again, true, but the same can be said for trading ES.

    My point is, if you are good with direction and good with your entry, you *should* be able to make money trading either one.
     
    Last edited: Mar 9, 2023
    #14     Mar 9, 2023
  5. BMK

    BMK

    I have a proprietary secret indicator that determines exactly when to close each spread. I'm still tweaking it. When I get it perfected, I'm going to sell it on a website for $350/month. If I get enough subscribers, I won't have to trade anymore.

    Just kidding.

    I don't have a good answer to your question. It somehow felt like the right time to cut the risk and get out. Some of this may be pure luck LOL
     
    #15     Mar 9, 2023
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  6. mervyn

    mervyn

    There is no secret sauce trading vertical spreads, either call or put, or iron condor, etc. Mostly just looking at delta for exposures, gamma is hard to catch.

    Days like today if you sell vertical puts, you at run over with a body on the street.
     
    #16     Mar 9, 2023
    MACD likes this.
  7. ondafringe

    ondafringe

    Then you should have sold call spreads.

    And on days like today, if you were long ES, you also got run over.
     
    #17     Mar 9, 2023
  8. mervyn

    mervyn

    Yes indeed, see my post in ES tread, blood on the street, have a drawdown over $2k.

    the difference is that ES can bounce back, ODTE you are cash settled today, dead body.
     
    #18     Mar 9, 2023
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  9. BMK

    BMK

    I have attached a screenshot of today's activity in SPX options...

    I am still learning how to capture images form the Schwab account. The image is tiny, but the resolution is very good, and if you magnify the image, you can read the text without any problem.

    An earlier post suggested adding timestamps. I can only get that from the order history, and my efforts to get a decent screenshot have not been very productive. If you want to see the timestamps, you'll have to open the attached .csv file.
     
    #19     Mar 9, 2023
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  10. TheDawn

    TheDawn

    Wow!! You have been busy. LOL So you must've had a good haul today. You were on the right side of the market. Congrats!! :thumbsup:
     
    #20     Mar 10, 2023
    MACD likes this.