Posted by DigiNomad on 14th of Feb 2023 at 04:27 pm
Junkie - I would consider qualifying that statement with
something like "Selling Zero DTE puts brings awesome gains!....if
you combine short term technical analysis, keep an eye on your
deltas, stay small and give yourself plenty of room to roll to the
next day and/or double down."
*I leave room for a 3rd entry and occasionally have to use it
(the triple down always makes me a bit queasy). Size can get
out of hand quickly if you don't start really small! I target 1%
per month, which leaves about 90% cash, until one of my strikes
gets challenged.
When this strategy goes against you (it will at some point -
it's a mathematical certainty), I'm sure you know that you can lose
many times what you stand to gain on that single trade.
Posted by fredsaid on 14th of Feb 2023 at 09:41 pm
I switched to spreads instead of straight about 2 years ago.
It's an important switch for options traders that are happy
hitting singles all day vs. trying for home runs. My next
switch is to sell more than I buy.
Selling 0DTE puts brings awesome
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Posted by junkie on 14th of Feb 2023 at 04:07 pm
Selling 0DTE puts brings awesome gains!
Junkie - I would consider
Posted by DigiNomad on 14th of Feb 2023 at 04:27 pm
Junkie - I would consider qualifying that statement with something like "Selling Zero DTE puts brings awesome gains!....if you combine short term technical analysis, keep an eye on your deltas, stay small and give yourself plenty of room to roll to the next day and/or double down."
*I leave room for a 3rd entry and occasionally have to use it (the triple down always makes me a bit queasy). Size can get out of hand quickly if you don't start really small! I target 1% per month, which leaves about 90% cash, until one of my strikes gets challenged.
When this strategy goes against you (it will at some point - it's a mathematical certainty), I'm sure you know that you can lose many times what you stand to gain on that single trade.
DigiNomad. agreed. I should have
Posted by junkie on 14th of Feb 2023 at 05:16 pm
DigiNomad. agreed. I should have said 'put spreads' instead of puts to control max losses.
I switched to spreads instead
Posted by fredsaid on 14th of Feb 2023 at 09:41 pm
I switched to spreads instead of straight about 2 years ago. It's an important switch for options traders that are happy hitting singles all day vs. trying for home runs. My next switch is to sell more than I buy.
Re option spreads. Good idea.
Posted by brophy on 15th of Feb 2023 at 07:49 am
Re option spreads. Good idea. Limit your risk. I sell spread prem. and collect it instead of putting up the $ for buying spreads.