ODTE options .... pros/cons?

Discussion in 'Options' started by KCalhoun, Mar 5, 2023.

  1. Matt_ORATS

    Matt_ORATS Sponsor

    I was just interviewed by a magazine about this and here were my points:
    • These options are not going to cause volmageddon: The market maker counter parties can adjust prices to manage risk. These options are not like the contracts that caused problems.
    • It is not gambling any more than other options. We have customers doing serious research using our intraday data. Eventually, we will have hour by hour expirations and that will be a good thing. What is beneficial about options is the price and risk discovery they provide. Intraday announcements can be priced and hedged.
     
    #11     Mar 5, 2023
    Adam777 and TheDawn like this.
  2. ondafringe

    ondafringe

    If you're interested, you can join their Facebook group.
     
    #12     Mar 5, 2023
  3. taowave

    taowave

    OTM= Extrinsic= Time value

     
    #13     Mar 5, 2023
    BKR88 likes this.
  4. ffs1001

    ffs1001

    Except for a couple of the posters in this thread (who are very knowledgeable) the others should be given a 1 week ban from posting on the options board. The sheer level of naiveness and ignorance displayed is unforgiveable.

    Ken - i respect you dude, but pls.....stay away from options. Theyll destroy your account before you can say "Hey, they have options on inverses!"
     
    #14     Mar 5, 2023
    KCalhoun, taowave and rb7 like this.
  5. GoldDigger

    GoldDigger



    Is that what you do with 0DTE Options, get in OTM?????

    What does that have to do with what I said?????


     
    #15     Mar 5, 2023
  6. R1234

    R1234

    of my event contracts trading? I am optimistic. I've experimented with a lot of different ideas with these since last October. Some hits and some misses. But since Jan I've been doing a thing which I think will be profitable going forward. Here's my actual daily equity curve for this strat on event contracts:
    upload_2023-3-5_16-15-25.png

    I have other methods I want to forward test as well in another account. Will post equity curves in the future if interested.
     
    #16     Mar 5, 2023
  7. ondafringe

    ondafringe

    Turn back!! You are now approaching the event horizon. :)
     
    #17     Mar 5, 2023
    stepandfetchit likes this.
  8. GoldDigger

    GoldDigger



    He's supposedly the expert, so he should be able
    to explain whatever point he's trying to make.
     
    #18     Mar 5, 2023
    murray t turtle likes this.
  9. taowave

    taowave

    You and several others should read a basic primer/book on options..

    It doesn't appear that most of the posters understand intrinsic vs extrinsic value..

    You in particular are a bit confused with DTE and time value



     
    #19     Mar 5, 2023
  10. GoldDigger

    GoldDigger



    So now I should read a book, is that all you have??????

    I'm not confused at all. The only thing that I don't understand
    is why you are picking apart my post when what I said was
    accurate.

    This thread is about 0DTE (ZERO DTE) so why don't you
    contribute something relevant to the actual topic.
     
    #20     Mar 5, 2023