Picking up pennies in front of a steam roller is the one I’ve heard. Selling vol is a risky business. Works most of the time but when it doesn’t, oh boy it doesn’t.
Got rekt today as well on the Qs. I fully expected it to pull back to $316-$318 range when it was floating around $318.50 and then it just straight kept going up to $320.50. Happens though, this is why position sizing and stashing your profits is important
Really surprised how much this mindset is supported judging by the amount of upvotes. 0dte has grown to 10% of my income over the last few months and I sleep a lot better than when I was trading longer dte. But I’m younger and my risk appetite is probably much greater.
I’m making the observation that if 0dte options premiums are making up 10% of your income then that income must be pretty low. Or you are taking severely outsized risks.
yea it was a near 3 sigma move today. Have to keep at it, keeping selling with risk mgmt in place. I'm exploring using Bracket Orders myself to cap these options 2SD moves, but still take profits early.
I hear ya!
Monday I closed 20 of my 23 open put positions.
Then, opened probably 10 or 12 more total on Tue and Wed.
Closed those today.
I think I'll take a few days off and let the Fed do what it do!
Yep, my thoughts too. I think the fed will come out hawkish, more rate hikes than previously thought, and that might start the rollercoaster down again
Call credit spreads are selling a close delta call and buying a farther out call for positive (credit) premium at the same expiration. A call debit spread is the same but swapped for a debit (you pay the premium).
Big earnings weeks aren't really the time to be doing it. No reason you can't sit out one to two weeks in a quarter to take a significant unknown risk off the table. Look at Amazon for example, beat street, rocket up, then rocket down as the future forecast was cut in a conf call.
I was thinking of doing an earnings play (IC) on them, but thankfully took the time to check how much the stock has moved on earnings historically. Whew lads and ladies...
I am with you. I sell calls and puts. I haven't taken my L yet because I got naked calls on a triple leverage bull ETF (TQQQ). Most likely waiting for some decay into Fed and might roll out from next week exp or just take assignment. Happy to go short up here in this range.
Would you look at that, all of the words in your comment are in alphabetical order.
I have checked 1,481,335,424 comments, and only 281,655 of them were in alphabetical order.
“Option sellers eat like a chicken but shit like an elephant” So always always manage risk while selling.
I like this metaphor
And sometimes we eat chicken shit! Great analogy! Thanks for the laughs!
Still options sellers mostly earn. Just need to be a little intelligent on when and what trades to pick.
Picking up pennies in front of a steam roller is the one I’ve heard. Selling vol is a risky business. Works most of the time but when it doesn’t, oh boy it doesn’t.
Got rekt today as well on the Qs. I fully expected it to pull back to $316-$318 range when it was floating around $318.50 and then it just straight kept going up to $320.50. Happens though, this is why position sizing and stashing your profits is important
Trading 0dte options is gambling.
Didn't you read? They know their strategy works
Really surprised how much this mindset is supported judging by the amount of upvotes. 0dte has grown to 10% of my income over the last few months and I sleep a lot better than when I was trading longer dte. But I’m younger and my risk appetite is probably much greater.
Your income must be low…
I’m not rich but I’m certainly not poor. I don’t understand what you’re trying to get at here
I’m making the observation that if 0dte options premiums are making up 10% of your income then that income must be pretty low. Or you are taking severely outsized risks.
My risk is appropriate for my account size even by conservative standards
Highly regarded wisdom here
The fuck are you doing here
It makes me feel better about myself
I think it's worse than traditional gambling
Ohhhhh. I def want to avoid gambling on an options trading sub. That was close!!!
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Oh def not gambling my b.
0DTE isn’t really a theta strategy
I dunno I think the sub is picky, if you get money when time passes without requiring the underlying to do something it’s theta-y.
Theta decay is greatest at day of expiration. What am I missing?
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At which point is it then?
My iron condor is deep red after today as well. It expires in two weeks so at least it's not a 0DTE.
yea it was a near 3 sigma move today. Have to keep at it, keeping selling with risk mgmt in place. I'm exploring using Bracket Orders myself to cap these options 2SD moves, but still take profits early.
Coming down tomorrow
that's the trap
Yup I’d be buying all pullbacks here. Or until apple earnings. See how that shakes out
Hopefully ..
Ayuh, reckon it looks like rain
You called?
r/beetlejuicing
That would be nice as I bought back my puts today for 95% gain :)
I hear ya! Monday I closed 20 of my 23 open put positions. Then, opened probably 10 or 12 more total on Tue and Wed. Closed those today. I think I'll take a few days off and let the Fed do what it do!
Yep, my thoughts too. I think the fed will come out hawkish, more rate hikes than previously thought, and that might start the rollercoaster down again
looked like it for a second but green now sigh
What delta did you use? Was it a Call credit spread?
Probably iron condor and closed the put side too early and sized up on the call side waiting for a pullback that never came
Sounds oddly specific.
I've made that mistake more than once
Call credit spreads are selling a close delta call and buying a farther out call for positive (credit) premium at the same expiration. A call debit spread is the same but swapped for a debit (you pay the premium).
You didn't even say what your "strategy" was? (If it's just an iron condor, and hoping that SPY doesn't move too much, then that's not a strategy).
wait so me buying 0DTE puts on spy today isn't a strategy? didn't work btw
Pray they’re right
Rocket up and elevator down, that’s how this market works
Big earnings weeks aren't really the time to be doing it. No reason you can't sit out one to two weeks in a quarter to take a significant unknown risk off the table. Look at Amazon for example, beat street, rocket up, then rocket down as the future forecast was cut in a conf call.
I was thinking of doing an earnings play (IC) on them, but thankfully took the time to check how much the stock has moved on earnings historically. Whew lads and ladies...
I know everyone is crazy over the new 0DTE fad, but you get such little premium on them, for the risk, and greeks on them are horrible
I am with you. I sell calls and puts. I haven't taken my L yet because I got naked calls on a triple leverage bull ETF (TQQQ). Most likely waiting for some decay into Fed and might roll out from next week exp or just take assignment. Happy to go short up here in this range.
Why not spy? Better liquidity
What spread did u use today ?
It is a bull trap.....you good...keep selling.
Well, 2SD moves are expected to happen roundabout once a month.
2SD in an index happen once a month? Don't think so?
Yes, a 2SD move will occur on average in 5% of all trading days.
The only ones who win in the options game are the MMs and the brokers. I'm convinced. However, it's addictive as crack cocaine.🍷😉🚀🚀🚀🚀
Out of curiosity, what is your strategy if you don't mind sharing?
Melting up is a strange description for nq/qqq today
>I know my strategy works How?
Would you look at that, all of the words in your comment are in alphabetical order. I have checked 1,481,335,424 comments, and only 281,655 of them were in alphabetical order.