0 DTE SPX

gneyman

New member
Anyone do these, selling condors or one sided verticals risking 9 to make 1 or the inverse - with directionality edge risking 1 to make 9 sometimes while benefitting from probability of touch to make 2-5x frequently? Sound off!
 

status1

Active member
I do the first part not so much the second part unless there is a directional edge because risking 1 to make 9 has a much lower probability unless you know the direction
With the iron condor you will make money anywhere inside the tent
If you are outside the tent you will not make money unless the underlying goes into the tent but the tent has to be in the direction of where the market will be when it expires which is much harder to predict under normal market conditions
 

gneyman

New member
I do the first part not so much the second part unless there is a directional edge because risking 1 to make 9 has a much lower probability unless you know the direction
With the iron condor you will make money anywhere inside the tent
If you are outside the tent you will not make money unless the underlying goes into the tent but the tent has to be in the direction of where the market will be when it expires which is much harder to predict under normal market conditions
So you combine the best of both worlds - directional OTM tent w/ +theta booster once inside tent
 

status1

Active member
There are many ways to combine them although I have not tried it with 0 DTE

You can do an iron condor and than add a debit spread to where you think the market will go so that will give it a boost but that will reduce the profit in the original iron condor if the market does not move in that direction You can even loose money if the market does not move in that direction It's all a tradeoff
Just keep an eye on your theta if it's negative and see if it's worth it to stay in the trade if the market is not moving in the predicted direction
 
Top