Can't say, I'm not comfortable with 0DTE, or have not found my "edge" with it yet. I prefer the above said DTEs instead. Maybe others here can tell you more about 0DTE options.
“Stock prices have reached what looks like a permanently high plateau” https://time.com/3207128/stock-market-high-1929/
You’re talking about the market, yet you’re only looking at the SPX. (VIX is just IV) If you want to talk about the market, then you need to look “under the hood”, and then you’ll see how the market is weak, and that SPX has been driven up by only few the stocks. Just look at market breadth, it’s really bad, yet you’re making claims that “this market is so unstoppable, that absolutely nothing on the face of this earth can change it.” Be careful if you’re fully invested. Can the SPX go higher? Of course it can, but if it will, then we’re definitely not in a roaring bull market. Just my 0.02
I'm new(ish) to Options trading, and you have a point to a point. I mean, the general consensus is that stocks in general (and in particular tech stocks) are highly overvalued. So, it stands to reason that the market should be due for a major correction. That said, regardless of what bad news catalysts come out (i.e. bank failures, (yet another) interest rate hike, geopolitical turmoil, etc) the markets just seem to shrug them off and continue going up. It doesn't really make sense. One can be excused from surmising that the market is being manipulated/rigged by the Fed. Free market forces being what they are (or should be), it only stands to reason that we should have seen a marked correction to the downside by now. Ironically, when I first started trading Options last year most of them were Call Credit Spreads, and most were profitable. However, my luck ran out once October's lows hit. Since then, the market has just gone up and up. Now, even when I identify a stock that looks like it's due for a correction to the downside (i.e. it has shot up markedly in a short period of time and likely not sustainable) and open a CCS on it it inevitably continues going up instead. No rhyme or reason as to why some stocks do this, and others don't.
I'm new(ish) to Options trading. So, I'll have to take your word for it. That said, market behavior does seem counterintuitive considering all of the factors that have been weighing on it. Also, popular consensus is that the markets are highly overvalued and thus due for a major correction... and yet it continues to go up.
Of course some overreaction here based on Friday. Sure we've had a few small red days here and there and of course it was up/flat today. The sell on Friday isn't even real. It's just setting up another V. It's been more flat/choppy than anything else recently. That's the thing with the minor red days, it just magically floats/ grinds right back up. You know any drop is unsustainable in this environment. Looking forward to another fed week pump higher.
Because it's pretty much impossible for these markets to correct. Have to train the mind to stop thinking about what could go wrong/ it doesn't make sense and tell yourself that they can't bring this market down.
What a V reversal today! It's the 0 DTE option effect. Wouldn't even make the top 10 list of V recoveries this year