Your opinion about this 0DTE strategy from tastylive presented ?

Discussion in 'Trading' started by TrAndy2022, Jan 3, 2024.

  1. TrAndy2022

    TrAndy2022

    Did We Just Discover The Best 0DTE Strategy? | Zero Days to Expiration Research

     
    Last edited by a moderator: Jan 3, 2024
  2. Robert Morse

    Robert Morse Sponsor

    This works well is a stable market, which we have had during their testing. It is also encouraging a lot of short term trading without any suitability requirements. I did not watch the entire video but I wonder if they provide an exit strategy during a market event? I’m not a fan of a one strategy fits all that creates volume for the presenter.
     
    Last edited: Jan 3, 2024
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  3. What is the strategy in a nutshell? I can't stand watching Tom.
     
  4. Hey thank you for that message, I always thought it was me. I can't stand hearing him for more than 15 seconds, also what's up with that wig, what is he trying to be. Can't he just enjoy his money and leave us alone.
     
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  5. maxinger

    maxinger

    Stop googling the whole world for the odte holy grail!!!!


    You wouldn't get it.

    In fact you will get junks and shits and garbages!!!

    Tom can't even afford to pay the hair dresser!!!
     
    Last edited: Jan 4, 2024
  6. BMK

    BMK

    It's a calendar spread. Buy a call 30 DTE and sell a 0DTE call against it.

    Sorry, I didn't listen long enough to learn how you select the strikes, or how you exit when it goes against you, or what you do with the long leg when the short leg expires worthless, i.e., do you sell another 0DTE call the next day, or sell off the long leg to recover the remaining premium, or... ?

    Calendar spreads are not new LOL
     
  7. bln

    bln

    I did see that. It's a theta extraction strategy. May be doable, the "book profit early and recenter at spot" idea.

    Some HF/CTA dude in a podcast was talking about gamma extraction. "exploiting the asymetric gamma convexity" to extract alpha. Putting on a structure every market day should outperform long term hold of S&P 500 in risk adjusted returns.
     
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  8. krowland

    krowland

    Me too. He is the worst teacher, and can't read the screens right in from of him. We never see his P/L and his money was made by selling companies, not trading. If it was, he'd show us.
     
    traderslair likes this.
  9. i dont understand. selling a call or a put? what strike? this is confusing.
     

  10. So from what I gather, a real time example would be:

    Current xsp price: $438
    VIX expected move 30 dte: $13

    Buy 1 30 DTE strangle @ 451/425
    Price: $30.79
    Delta: .-7
    Debit: $3079

    Sell 1 ATM? 0 dte straddle
    Price: 2.30
    Delta: .11
    Credit: $230
     
    #10     Jan 11, 2024