ODTE options .... pros/cons?

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

  1. easymon1

    easymon1

    When are these bad boys first posted where a rabid punter can get their account 'involved'?
    Same day at 8:00 AM? 9:30 AM? 23 hours prior?
    delete.jpg
     
    #31     Mar 5, 2023
  2. TheDawn

    TheDawn

    I tried to make a correction but I exceeded the 60-minute limit. What I meant to say is "I assume they mean extremely high theta because the option is expiring soon..." The article is very confusing with this "0 time value" term. I really don't know what they mean by that.
     
    #32     Mar 5, 2023
  3. TheDawn

    TheDawn

    She notices she's getting stopped out of her credit spread due to larger intro-day moves so she proceeds to do credit spreads on intro-day. LOL
     
    Last edited: Mar 5, 2023
    #33     Mar 5, 2023
  4. TheDawn

    TheDawn

    Exactly! The timing of the trading is just being displaced to same-day vs. over two days, over a week or a month and etc. Regardless how often or when options are traded, MM's will always want to hedge.
     
    #34     Mar 5, 2023
  5. newwurldmn

    newwurldmn

    You think they can handle the settlement of hourly options?

    there’s no official spx print every hour

     
    #35     Mar 5, 2023
  6. newwurldmn

    newwurldmn

    Next she will be talking about infinite gamma.

     
    #36     Mar 5, 2023
  7. TheDawn

    TheDawn

    Wow!! The calvary has arrived!! LOL
     
    #37     Mar 5, 2023
  8. Adam777

    Adam777

    [QUOTE="Overnight, post: 5774020, member: 494466"

    Aren't 0DTE options initiated at the start of the trading day, and expire that day? [/QUOTE]

    Not necessarily. When I do them, I'm in and out 2 to 4 times a day. Just treat it like normal option day trading. If you decide to do the popular credit spreads, and if the market swings in the opposite direction, you can lose your money very very fast as the risk reward is very bad. There's more to life than just credit spreads
     
    #38     Mar 5, 2023
  9. Cabin111

    Cabin111

    #39     Mar 5, 2023
  10. GoldDigger

    GoldDigger

    #40     Mar 6, 2023
    murray t turtle likes this.