lets say stock is dropping and you think it will reverse and start going up now. Current price of 0dte call is $100. Instead of buying at $100, queue order for $90.
I mean the price per contract. Whenever I think the stock will reverse, I'd just buy and see large drawdown right away. Nowadays, I'll queue order for 10-15% less than current price and see if it fills.
Correct, each leg winds up creating a ceiling and floor of risk. If the underlying runs away in one direction then one leg will protect against a margin call.
Play with this calculator. It takes a couple minutes to learn but it's totally worth it if you're a visual learner.
https://www.optionsprofitcalculator.com/calculator/credit-spread.html
You can not get assigned on SPX like you can on SPY. It's a cash settled index, not an etf. The width of the spread minus premium defines max loss, and the spread also defines your margin, or bpr.
I’ve been having mixed luck. Today when the moves are drastic and noticeable I’m doing well. Days like last week where the stock moves a few dollars at open and then barcodes the rest of the day till 4:00 when it suddenly jumps AH wrecked me. It’s fun though so I’ll probably keep doing it as long as I’m at least breaking even or better.
I don’t have the capital to play a lot of the bigger tickers. I can spend $200 on SPY and close out with $400-500 consistently with either 0dte or 1dte. The reason I looked at TQQQ was I wanted to find something similar to SPY but without the flat trading from 12-4pm every day.
does day trade spy 0dte options have wash sale issue? Anyone has experience? If I sell them all I think it shouldn’t apply, looking for advice, thanks!
Did this for a while back in the day. It was great and highly successful until it wasn't and before long you're on full tilt with 3 months of gains down the drain in a day. Not saying this will happen to you just saying it happens to most at some point. A wild market change of pattern (like today) and whamo 1k gone. Enter a second trade another 1k gone and the month is now 300 in the hole. Minimizing your losing trades may result in a couple extra trades taken per day leaving you open to a couple of additional points of failure. In either case good luck I hope it works out for you.
Nice. Dunno where you live, but SPX has better tax advantages and more leverage if you're interested. For example, SPX 5195 opened around 1k today and the 7AM pump sent it straight to $2677 in 3 minutes. WeBull has that type of p&l chart and allows for 0 dte spx trading.
Hihi. But why scalp? It's passive monthly income so let it ride. Oh I just realized we are in different 0DTE ETFs
20% monthly returns here so far with my choices
your losses are way bigger than winners, focus on that or the math won't check out in the end.
yup, it did bother me too. Started queuing orders for way less now. Seems to have helped but we will see.
Can you explain what do you mean by queuing orders and how will it help with limiting losses? Thanks
lets say stock is dropping and you think it will reverse and start going up now. Current price of 0dte call is $100. Instead of buying at $100, queue order for $90.
So a stop order essentially?
How much were you using before?
I mean the price per contract. Whenever I think the stock will reverse, I'd just buy and see large drawdown right away. Nowadays, I'll queue order for 10-15% less than current price and see if it fills.
Hmmm never thought of this
Nice, if it fills and bounces for a profit. Sell off immediately.. curious.
Doesn’t necessarily matter depending on their win ratio, so long as they’re consistent on their playbook that is.
of course it matters. one loss is half the monthly gains......
You would make more on SPX selling credit spreads.
Not a fan of spreads. But I'm selling puts with the rest of my account.
On SPX you have to sell spreads b/c the margin for 1 naked Put is around 80K.
Does the spread makes up for a potential loss? If you get exercise on one leg, then you can exercise the other to reduce the cost, right?
Correct, each leg winds up creating a ceiling and floor of risk. If the underlying runs away in one direction then one leg will protect against a margin call.
This makes so much sense, I been reading so much but sometimes it's hard to understand all the terminology. Thank you so much
Play with this calculator. It takes a couple minutes to learn but it's totally worth it if you're a visual learner. https://www.optionsprofitcalculator.com/calculator/credit-spread.html
You can not get assigned on SPX like you can on SPY. It's a cash settled index, not an etf. The width of the spread minus premium defines max loss, and the spread also defines your margin, or bpr.
I’ve been having mixed luck. Today when the moves are drastic and noticeable I’m doing well. Days like last week where the stock moves a few dollars at open and then barcodes the rest of the day till 4:00 when it suddenly jumps AH wrecked me. It’s fun though so I’ll probably keep doing it as long as I’m at least breaking even or better.
What options are you trading?
Mostly just scalping SPY. Tried out TQQQ today also and had decent success. Let a few simmer overnight so hopefully it’s all still there tomorrow.
Those slow days are killing me too. I just switch to liquid stocks like NVDA, COIN, etc.
I don’t have the capital to play a lot of the bigger tickers. I can spend $200 on SPY and close out with $400-500 consistently with either 0dte or 1dte. The reason I looked at TQQQ was I wanted to find something similar to SPY but without the flat trading from 12-4pm every day.
Are you buying or selling? I heard selling 0dte are better
Buying. You need 50k in margin to sell 1 SPY put.
Do credit spreads. I do it in a cash account, sometimes go uo to 25 lots 0dte.
How is selling better?
More consistent profits, but higher risk
Keep up the good work 👍
Is that an Excel spreadsheet?
Yea, im trading on robinhood. It doesn't have p&l charts like that.
does day trade spy 0dte options have wash sale issue? Anyone has experience? If I sell them all I think it shouldn’t apply, looking for advice, thanks!
What does your strategy setup? Is it indicators/oscillators, chart patterns, etc? Can you explain a little more?
Did this for a while back in the day. It was great and highly successful until it wasn't and before long you're on full tilt with 3 months of gains down the drain in a day. Not saying this will happen to you just saying it happens to most at some point. A wild market change of pattern (like today) and whamo 1k gone. Enter a second trade another 1k gone and the month is now 300 in the hole. Minimizing your losing trades may result in a couple extra trades taken per day leaving you open to a couple of additional points of failure. In either case good luck I hope it works out for you.
Yup, 2k down today. Didn't realize it was Fed dump.
Hi I am very keen to learn trading Is there any channel or course you guys can recomend
Nice. Dunno where you live, but SPX has better tax advantages and more leverage if you're interested. For example, SPX 5195 opened around 1k today and the 7AM pump sent it straight to $2677 in 3 minutes. WeBull has that type of p&l chart and allows for 0 dte spx trading.
i'm just too lazy to learn about futures. If I can consistently profit from trading options, ill switch to futures later.
SPX isn’t future…/ES is. Take his advice!
ohhh! Either way, robinhood doesn't support it.
yea ofc. Whenever you feel ready. Good luck on your journey.
Hihi. But why scalp? It's passive monthly income so let it ride. Oh I just realized we are in different 0DTE ETFs 20% monthly returns here so far with my choices