re: Options Trading Thread

For SPX 0DTEs, I generally won't go above 5 delta. Yes, I found early on that 10 can put you too close to Zeus & Apollo - gamma risk gets crazy with these things. But I do have some "normal" (40 DTE at open) SPX call spreads that I opened around 15 delta.

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For SPX 0DTEs, I generally won't go above 5 delta. Yes, I found early on that 10 can put you too close to Zeus & Apollo - gamma risk gets crazy with these things. But I do have some "normal" (40 DTE at open) SPX call spreads that I opened around 15 delta.

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You and LSUtoOmaha just taught me something! Thank you. I serious have never thought about trading 0DTEs. I do a lot of Short term PMCCs and always sell a delta between 16ish and 30ish on ones that I do not want to Keep. I go from .09 to .16ish on my CCs or long term PMCC (12 to 24 months out on the long leg).


I will do a 0DTE this week just for the experience.

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Was a great call to go with a Put Spread

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Thanks. But those are actually just the strikes on different cash covered puts.

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Thanks. But those are actually just the strikes on different cash covered puts.

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Ah! You sold puts. Still, it's holding in the high 180s. so still a good trade.

Ok... Opened a PMCC on ROKU. Purchased 1/17/25 at the 75 strike. Will be a little more aggressive on the calls sold. Instead of a .9 to .16 delta, I look for a .16 to .30.


First sold call on it expires next Friday. Strike is 95 with a .28 delta for $130

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Ah! You sold puts. Still, it's holding in the high 180s. so still a good trade.

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So far. We’ll see if it stays above my strikes by tomorrow. But I’m willing to take shares at those strikes and do wheel trades to exit if necessary. Just as in the past, I’m willing to “date” TSLA, but I don’t want to “marry” it.

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Haven't seen any in here but do any of you pay for any services to see the option trades everyday?

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I joined Kirk du Plessis’s Option Alpha pay site years ago. I still have access but don’t really use it anymore, as Kirk’s strategies are somewhat different than mine now. Although we both focus on selling premium, he focuses more on IV rank, rather than IV% and then IV rank (as I do). Plus I now trade index 0DTE options more than equity and ETF options, as he does.

In reading your question, are you talking about services that recommend call and/or put buying or (short) selling? I’m not familiar with the service that you mentioned.

I don’t know how to upload a picture here the service is an app that is a database of call buys, put buys and put sales that are notable everyday. It has some sort of ranking system so you see what names are bullish or bearish. I use it to see what the put sales sold in big numbers daily are and I try to follow a few

This is effectively what’s led to vol collapse with so many structured products coming in doing this. Been wildly profitable and will continue to do so until we enter a new vol regime. Guess we’ll find out Wednesday

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Jag, I tried to find 0DTEs, but the premiums for strikes plus the cost on SPY...

Can you be more specfic with an example of an actual trade?

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Sure. I can put up a hypothetical SPX 0DTE short premium trade. A SPY trade would be similar, but in my business trading account I have to use SPX (or other true index underlying products) for sizing and tax reasons - plus SPX contracts are cash settled, so in case of a “whoops!”, I can’t be assigned shares (as could be the case with SPY and other ETF or equity based options). Holding actual shares in this particular trading account would cause mark-to-market accounting and tax issues that I don’t care to deal with. I have a separate trading account where I might do those types of equity or ETF underlying trades.

So this is NOT a trade that I’m recommending or necessarily putting on - just an example of some of the things I’d look at (realize that the market continues to move as I’m typing this):

11:40 ET - SPX sits at approximately 4880, down about 45 points/.92%. VIX is around 14.43, up 1.13/8.49%. Earnings season and Fed speak week is providing some more “juice” currently.

Just looking at a basic SPX 0DTE (1/31/24 expiration) short put spread around -5 delta on the short put, 20 point spread, with the long/“protective” put at -1 delta. Right now, we’d have a 4825/4805 construction, net credit of $50/contract. Max loss of $1950/contract. So on the face, you’re potentially risking $1950 to make $50 gross profit. “Bad” risk reward, right? But on the flip side, your probability of profit is approximately 95% and a potential gross profit percentage of approximately 2.5% for one day vs. the potential max loss/buying power reduction.

Let’s say one sells 20 contracts. Max gross profit of $1000. Max possible loss/buying power reduction is $39,000. If the trade is successful, and expires worthless, your gross max gain for the day is that approximately 2.5% and your buying power is returned before the beginning of the trading session tomorrow.

There’s a lot more to it than just what I’ve illustrated here. But from 1000 feet, that’s one example of a low delta/high probability of profit 0DTE trade that I might do 3-4 trading days per week. A 2-3% daily profit is enough for me in these lower IV times. When I’m wrong, I would be VERY wrong. I would accept that fact and bail out with a significant loss, although I would never let a bad trade expand into a max loss conclusion. So that’s one of the main things I would stress: with 0DTE trading, risk and loss management is so critical, because these hand grenades have so much gamma or tail risk… meaning when they explode, it can happen very quickly. But with IV/VIX being typically overstated, my “win” rate last year was approximately 97%. Outside of having inside information, I could never do that with stock trading (and I’m too old to go to jail ).

I personally would (and did) study, study, learn, learn, paper trade and paper trade some more before delving into the 0-1DTE arena. And even then, you have to know your own personality and tolerance for risk and potential losses. If you are any sort of emotional, nervous, compulsive, indecisive or reactionary person… DO NOT mess with 0-1DTEs of any sort. The options arena offers a plethora of other types of trades that might be more suitable, and maybe even better suited to a particular trader.

Last word: subscribe to TastyTrade if you have an interest in premium selling (especially). I’m doing well with the niche that I’ve chosen, but I’m just a child compared to Tom Sosnoff and his level of knowledge and experience.