fuzzballl 2:28 pm on Tuesday, December 12, 2023

Another 0DTE Idea

Haven’t tried this…just now happened to see it.

walter6871 2:58 pm on Tuesday, December 12, 2023

interesting
but need specific examples
- fuzzballl 3:26 pm on Tuesday, December 12, 2023
  
  Exactly. Have to paper trade it a little to see how it feels. Very interesting though.
matt0311 3:30 pm on Tuesday, December 12, 2023

Seems to be very labor intensive. If you are in front of the computer all day might be a good way. But I am already getting nervous by just doing the 0-DTE IC once a day!
- fuzzballl 3:38 pm on Tuesday, December 12, 2023
  
  I rarely sit and watch it all day. If I was making some decent cash then I might be more enthused. Also with Fidelity instead of TOS just a simple roll is a pain. Probably looking at 6 or 7 trades max per day if you are constantly taking profits and recentering the 0DTE straddle.
fuzzballl 6:34 am on Wednesday, December 13, 2023

Paper:
- fuzzballl 2:56 pm on Wednesday, December 13, 2023
  
  Big loser today with the bigger than expected move. Straddle took about a 35 point hit and the strangle made about 10. Net down 25 or so. Seems to act a lot like an iron condor. I didn’t do any types of adjustments on it. Just wanted to see how it reacted on a big move.
Ramie 5:50 pm on Monday, December 18, 2023

Thanks for posting this. I was curious so I watched the video and some of the others they had done on this topic. Interesting idea and numbers on the backtest. I decided to dip my toe in and see what it looked like, how it traded, etc. I put on the trade (STO 12/18 4730 straddle + BTO 1/17 4620/4850 strangle) for a debit of 21.30. It never got about 10-15% profit (was looking for 25%) then fell back with the strength in SPX. I ended up closing it in the last hour for 20.95 (.35 loss). 1 contract.

I will try it again tomorrow.