I tried my first 0DTE today. -1 S&P 500 4455 Call +1 S&P 500 4460 Call .25 credit It was at about 4435 at the time. I went small because I don't think I have the whole sitch right. Something doesn't make sense to me. I paper traded a -10/+10 Call Credit Spread for a whole bunch more, but something didn't seem right, so paper it was. I could not believe how FAT the S&P 500 premiums were...1/2 hour after the Fed decision was announced. There was only 1 1/2 hour left in trading. When are they settled? I called my broker...twice. Two different people didn't give me an answer that made sense to me. I'm curious to see when they're removed due to expiration.
The spread is 5 apart and the premiums are based on that. Today is the Fed rate decision day so the volatility is larger than usual and premiums reflect that also. If it's 0 DTE as the name implies, the options would expire at the end of the day today. Congrats you made some money today.
Wow... 20 risk to 1 reward on a 0.5% move... why? LoL If you did it everyday.. not even 10 losses in one year, because market moved 30 points, and you are down for the year.
If you're being sincere- the presser. Premiums hold on Wednesday through the prepared remarks and Q&A. The close is usually good for *some* move- although most of FOMC-related variance tends to hit in the overnight and Thursday session historically.
I got the bug a little bit. After modest success on my first try, I did a successful Put Credit Spread on Thursday, and placed a Put Credit Spread on Friday mid morning, then mid afternoon I placed a Call Credit Spread. I’m surprised at the volatility, it’s impressive. So I’m 4 for 4. Karen Supertrader’s got nuttin’ on me. ;-)