I think the idea is to catch a quick pop to get the option into ITM for a break even trade. It’s similar/related to trading whole numbers. I don’t think it has anything to do with the Greeks, as @Dustin pointed out.
Ken seems kind of crazy ...the type of guy to immediately buy a Rolex, sports car...have a mistress, buy cool clothes, eat at restaurants, night clubs, sail, go on vacation to Hawaii or the Carribean...if he ever truly came upon money. And his trading style, performance, history, record kind of reflects that erraticness and unstability.
I seek money. I seek volatility and range -- and only weekly options can provide that, closer to expiration. I'm sure a lot of people can make the argument it's nothing more than dumb duck casino gambling, but if you have a certain degree of skill, talent, experience, wisdom, philosophy, tactics...it's like having x-ray vision on the blackjack card count shoot deck, or on where the roulette ball will land on the spinning wheel.
Agree -- Volatility and range (with risk mgmt) is everything Not squiggly line t/a etc .... the main use of charts is to show trend and more important, range and directional volatility. Many don't get it. As I say, the math is more important than charts. And I've had sports cars, Brioni suits, traveled the world, lots of ladies, etc.... I love trading more than all of it (^_^)
dustin buys options. He is implicitly making long gamma bets but has shown (at least in his journal) that he’s good at finding stocks that are moving enough to pay for the decay.
If you are looking to simulate long (or short) stock, it seems that you would want to buy deep ITM calls (or puts). An Oct 11 410 SPY call has a 91 delta (essentially long stock) and trades for $37, so 11x leverage relative to long stock ($450/share) The liquidity of said options can be problematic. The call referenced above only had 5 contracts trade on Friday. I think that's the biggest issue I am probably misunderstanding you, but FWIW...
I've had 400%+ returns the last 2 years on a decent sized account. With 0DTE you are targeting 1000-1500% per day on the trade. 8-12% would be considered very poor performance. K.I.S.S.
So you’re only capturing 200% on potentially +1,000,000% annual opportunity? I am sure you are making money but I don’t think what you’re describing is as simple as you claim.
You need experience, discipline, and maybe a little luck on your side when the trade hits. The idea is simple, proper execution isn't.